Era 8: The 1980s
1980 Summer Olympics Boycott
- President Carter boycotted the 1980 Summer Olympics in Moscow because the Soviets didn't remove troops.
- The boycott mattered to the athletes.
- Carter made decisions based on morality and faith, not convenience.
- Carter's faith was important, leading to decisions based on his morals.
1980 Winter Olympics and the "Miracle on Ice"
- The US competed in the 1980 Winter Olympics, which featured the "Miracle on Ice."
- The Soviets participated in the Winter Olympics.
- The Olympics were seen as a festival about amateur athletics. The Soviets cheated this rule.
- The Soviets had the Red Army team, a professional hockey team.
- American athletes were amateurs.
- The 1992 Summer Olympics "Dream Team" in basketball was unique because it featured professional American players.
- The Soviets team went on an exhibition tour and beat Team USA, except for a loss to the Philadelphia Flyers (Broadstreet Bullies), a physical team.
- The speaker jokingly describes Philadelphia fans as having a reputation for bad behavior.
"Miracle on Ice" Details
- The game against the Soviets was not the gold medal game. The tournament involved two pools of six teams, with the top two advancing to a round robin.
- The US carried a 2-2 tie result with Sweden into the round robin.
- The US had to play the Soviets and Finland.
- The optometrist for the team later opened Annabel's Ice Cream in Portsmouth, New Hampshire.
- Recommendation to visit Annabel's Ice Cream and try the chocolate ice cream soda (chocolate syrup, soda water, cream, chocolate ice cream).
- The Creole Creamery in New Orleans also makes a similar drink.
Importance of Avoiding Fights
- Getting into a fight would result in ejection from the next game.
- Fighting may have been an automatic ejection in international play.
The Game Against Finland
- The US had one win and one tie going into the game against Finland.
- The Soviets defeated Sweden after their game against the US.
- The US needed to win against Finland to secure a medal, potentially gold.
- At the end of the second period, The US was losing 2-1.
- Coach Brooks's locker room speech: "If you lose this game, you will take this to your f***ing graves."
- The US scored three goals in the third period to win.
Reaganomics and the Laffer Curve
- To grow the economy, Reagan wanted tax cuts, especially for the wealthy.
- Reagan's idea was based on Arthur Laffer's Laffer Curve. The Laffer curve suggests that increasing tax rates beyond a certain point disincentivizes work and investment, reducing tax revenue.
- The concept was drawn on a napkin at an Italian restaurant.
- Reducing taxes on the rich would encourage investment, creating jobs for the lower and middle classes (trickle-down economics).
- Laffer argued that reducing taxes could eliminate the national debt due to increased economic growth.
Reagan's Economic Policies and Outcomes
- Reagan inherited substantial inflation.
- In 1981 and 1982, The US economy was in recession with high inflation rates.
- Reagan told the Federal Reserve to control inflation, leading to increased interest rates.
- Mortgage rates in the 1980s were around 18-20%.
- The economy started to grow around 1983.
- Oil prices collapsed in the 1980s, benefiting The US but hurting Mexico and Nigeria.
- Mexico and Nigeria borrowed against oil revenues in the 1970s, based on high oil prices. When prices fell, they faced economic difficulties.
- Inflation subsided as oil prices decreased.
- Unemployment was low by the end of Reagan's term.
- The national debt increased from to during Reagan's presidency.
- Defense spending increased, and tax cuts resulted in less revenue.
- The idea that tax cuts would generate more tax revenue did not materialize.
Attempted Assassination of Ronald Reagan
- Reagan survived an assassination attempt early in his presidency.
- The speaker recalls being at Nature's Classroom when they heard about the incident.
- Reagan was shot and taken to George Washington University Hospital.
John Hinckley and Jodie Foster
- John Hinckley attempted to assassinate Reagan to impress Jodie Foster.
- Hinckley was inspired by the movie Taxi Driver, in which De Niro's character attempts to assassinate a senator.
- Hinckley was found not guilty by reason of insanity.
- Hinckley was sent to a legal institution.
Aftermath of the Assassination Attempt
- Three other people were shot during the assassination attempt.
- Presidential Press Secretary James Brady was shot in the head, survived but was paralyzed, and became a gun control advocate.
- The Brady Bill, passed in 1993, mandated background checks and a five-day waiting period to purchase guns (now instant background checks).