key topic 4 - republican dominance and its opponents 1981-92

Reagan campaigned on calls for cuts in:

Taxation - ‘big govt’ - crime - welfare payments

Reagan becomes president:

1980 defeats carter - primarily due to Carters record + appeal of lower taxes and end of big govt

Reagan economic and social policy ideas:

Cut tax, reduce fed Govt - not destroy completely as social security and Medicare used by elderly who were powerful voters - begin to reserve GS - adverse effect on families and workers

1981 Reagan budget cuts:

Reduce 212 federal programmes budget - food stamps, student loans, AFDC, 13million children below the poverty line dependent on BA mothers who relied on AFDC

Reagan tax cuts 1981 benefitted the rich:

Share of the national income of the wealthiest 1% rose from 8% to 15% - double amount of homeless people

1981-83 effect on workers:

Double digit inflation - 10% unemployment - 50% in rust belt - avg family income fell under Reagan - only half of families maintained their standard of living

Reagan and education:

A Nation At Risk 1983: highlighted declining test scores - 23 million functional illiterates - Reagan cut Dept for Education staff by 25% - decreased educational grants to the states by 63%

Reagan hostility to unions:

1981 12,000 air-traffic controllers ignored ‘no-strike for federal employees’ clause and strike for higher wages - Reagan fired them all and used the military to do their jobs

How many judicial appointments did Reagan make:

400 - rulings in the 80s made it harder for women, minorities and the elderly to sue employers over employment discrimination

Reagan lightening regulations on industry and business:

Cut regulatory agencies by 25% failed to differentiate which were economic and which protected health and the environment - 50% fall in prosecutions for illegal disposal of hazardous waste - Consumer Product Safety Commission cut by 40%

Congressional and public resistance to Reagan:

• he vetoed the $18billion clean water act renewal but Congress overrode his veto

• Most Americans valued social security, Medicare and veterans benefits, school lunches, Head Start programme, Dept of Agriculture attempt to replace vegetables in school lunches with relish ridiculed and dropped

Economic successes of Reagan:

• defence spending brought prosperity to west coast and regions with defence/aerospace industry

• Tax reform bill 1986 simplified tax code and increased tax on corporations and capital gains - lowered the top rate from 50% to 30%

• Longest ever period of economic growth 0 1980-88 inflation fell from 13.5% to 5%

Reagan and the National debt:

Criticised the $1trillion nations debt as ‘mortgaging our future’ but it tripled in his presidency - budget deficit was 5x those of his predecessor - US 5% of worlds pop but 25% of its goods produced 1990 - Reagan financed tax cuts and weapons purchases with money borrowed from Japan and Germany -

The growth of the trade deficit:

Mid 80s USA went from one of the largest creditor nations to the largest debtor - deficit meant high standard of living in 80s but poor for future gens - trad deficient rose from £38billion 1985 to $150billion per year by late 1980s - American spent $2billion more on imported goods then foreigners spent on US goods

Govt action to limit trade deficit:

Japanese voluntarily limit exports to US 1981 - 25% tariffs on imported trucks - annual trade deficit with japan hit $50billion 1985

Reagan’s legacy:

1990 $132billion of taxpayer money used to bail out savings and loan institutions due to his deregulation - ruined federal budget - new domestic expenditure/social welfare not possible

Why was Bush elected president 1989:

Endorsement from Reagan - had been his vice - and ‘no new taxes’ promise

Bush’s contradictory campaign promise:

‘No new taxes’ + decrease $3trillion +$200billion interest trade deficit - once elected he agreed with congress tax must increase

Why was Bush’s tax rise highly significant:

• belief that the fed govt had spent beyond its means - he did nothing to help workers worried about family income

• Bush didn’t promote a conservative social agenda = couldn’t be re-elected

• Election of Clinton 1992 - democrats in congress and exec national swing to the left

Problems for American workers under Bush:

Recision 1990 - Big Three car manufacturers fire 60k workers - 991 unemployment hit 8 year high 8% - closed 31 major military bases 1991 cost 70k jobs - Bush vetoed family and medical leave legislation, a CR bill on racial employment discrimination

Leaders of the religious right:

Phyllis Schlafly - Beverly LaHaye - 500k Concerned Women of America

The religous right promoted their beliefs through:

Organisations, the media, support for conservative politicians

The religous right opposed:

feminism - divorce (rate had doubled 1965-1985) working mothers, the ERA, drug taking, abortion, sexual liberalisation(500k cohabiting couples 1970 - rose to 1mil 1980), homosexuality, pop cultures preoccupation with sex, porn, sex education

Jerry Falwell:

Opposition to smoking, drinking, rock - OldTime Gospel Hour broadcast on 300 radio stations - moral majority est 1978 - helped raise millions for Reagan’s campaign and MM resisted 2mil voters

The Christian Coaliton:

Est 1989 - lobby govt to enact socially conservative measures - 199 150k members

Reagan and the RR:

1980s campaign