In-depth Notes on Ronald Reagan's Presidency and Domestic Policy

Ronald Reagan’s presidency is examined in two parts: domestic policy and foreign policy.
Review of the late 1970s under President Jimmy Carter:
- Economic downturn comparable to the Great Depression.
- Significant issues included the Iran Hostage Crisis, affecting Carter's popularity.
- Carter's "Crisis of Confidence" speech criticized American materialism, negatively impacting his approval.

Formerly a movie star and TV actor, Reagan became prominent during the 1964 election with his support for Barry Goldwater.
Elected Governor of California in 1966, closely contested the 1976 Republican nomination.
Ronald Reagan, known as the "Great Communicator," had a landslide victory in the 1980 election against Carter due to various factors:
- Critique of Democratic policies and expansion of government.
- Emphasis on restoring U.S. prestige and addressing economic issues, including a high "misery index" (inflation + unemployment).
- Rhetorical question posed: "Are you better off now than you were four years ago?"

Emergence of the Moral Majority, led by Jerry Falwell:
- Coalition of evangelical Christians mobilizing politically to influence elections.
- Aimed to remove liberal candidates and restore conservative values in government.
- Significant in the Bible Belt and Sun Belt regions, where political shifts became apparent.

1980 saw the release of 52 hostages on Reagan’s inauguration day; a dramatic conclusion to the Iran Hostage Crisis.
Reagan narrowly escaped assassination on March 30, 1981, demonstrating resilience and rallying public support.
The assassin, John Hinckley Jr., suffered from erotomania and was infatuated with actress Jodie Foster.

Economic Recovery Act of 1981:
- Implemented extensive tax cuts (25% over three years).
- Targeted corporate income taxes and capital gains taxes favoring the wealthy.
Criticism: The tax cuts primarily benefited the rich while the lower and middle classes felt strain.

Reduction of roughly $40 billion in funding for:
- Social programs like food stamps and student loans.
- Public services, while protecting Medicare and Social Security benefits for the elderly.

Military expenditure increased, resulting in yearly deficits between $200 billion and $300 billion.
National debt skyrocketed from 900 billion dollars at the start of his presidency to 2.7 trillion dollars by the end.

Continuation of deregulation policies, which began under Carter, reducing government oversight in various industries:
- Savings and loans, environmental regulations, and auto safety.
Trickle-down economics theory emerged, positing that benefits would eventually reach all economic levels.

Economic resurgence by 1983 contributed to a boom in stock prices and yuppie culture (young urban professionals).
However, unregulated Wall Street practices led to a significant crash in 1987 (Black Monday), resulting in job losses for many.

Reagan's domestic policies aimed at economic revival through:
- Tax cuts, reduced social spending, increased military spending, and deregulation.
This approach aligns with supply-side economics, contrasting with Keynesianism, which advocates government spending to spur demand.
By 1983, signs of economic recovery were visible, setting the stage for sustained growth in the latter part of the decade.