Reaganomics and Late 20th Century History
Ronald Reagan favored deregulation and decreased government intervention, the exact opposite of FDR's policies.
He championed "Rocket individualism" (a term associated with Herbert Hooper), believing individuals should support themselves.
Reaganomics or "trickle economics" involved giving massive tax cuts to the wealthy to stimulate the economy.
He opposed Lyndon B. Johnson's "Great Society," which held that the government is responsible for solving social problems.
Reagan shifted power from the central federal government to the states.
Inflation dropped significantly from 13\text{ }\text{%} to 4\text{ }\text{%}.
The "bull market" (rising stock market) was fueled by extra investment capital from tax cuts.
Proliferation of the personal computer (e.g., Apple, Windows) spurred new economic growth.
Negative consequences included a widening income gap, urban poverty, and homelessness due to cuts in social programs.
Despite cutting taxes, Reagan vastly increased the military budget to approximately a year, leading to higher national debt.
Previously, the US followed the gold standard where a bill was equal to of gold.
President Nixon ended the gold standard, moving the US to a fiat currency backed by military power rather than physical gold.
In 1991, Saddam Hussein of Iraq invaded Kuwait, a country rich in oil.
The US intervened to protect the oil supply and fight Iraqis, causing long-term destabilization in the Middle East.
The US government defines "political Islam" or "Islamists" as those wanting a government run by Sharia law, often viewing it as a threat to democracy.
The INF treaty (1987) saw the US and the Soviet Union agree to destroy intermediate-range missiles, leading to warmer relations.
In 1989, the Berlin Wall fell, symbolizing the end of the division between East and West Germany.
The Soviet Union collapsed or "committed suicide" in 1991 following internal issues, the Afghan war failure, and events like the Chernobyl explosion.
Definition of Islamist: The speaker clarified that an Islamist is someone who wants a government to follow Islamic law (Sharia), which is often seen as taboo in American democratic contexts.
Student Observation on Age: A student noted their mother was born in 1980, making her about 11 years old during the 1991 collapse of the Soviet Union.
Interest Rates: A question was raised regarding high interest rates at banks during that era.