Notes on Reagan, Bush, and Clinton Administrations

Reagan Administration Foreign Policy

• Involvement in global conflicts by supporting the side opposing communism through monetary aid, supplies, and weapons, without deploying soldiers.
• Strategic Defense Initiative (SDI), known as the "Star Wars" program:
  • A plan to use satellites and lasers to intercept and destroy missiles before they reach the U.S.
  • Inspired by the concept of Israel's Iron Dome.
  • The program never came to fruition.

Reaganomics

• Reaganomics is a set of economic policies implemented during Ronald Reagan's presidency, aimed at stimulating the economy by focusing on the supply side.
• Stagflation: High inflation combined with slow economic growth and high unemployment.
• Presidents Nixon, Ford, and Carter oversaw a significant increase in national debt, tripling to 380 billion by the 1980s.
• Opportunity Cost: Addressing government spending through the lens of opportunity cost. The cost of choosing one option over another.
  • Example: Choosing to go to Hawaii instead of Disney World; the opportunity cost is the trip to Disney World.
  • Applying this concept to government spending means evaluating what is being given up when allocating resources to specific areas like defense.

Supply-Side Economics

• Focusing on businesses (suppliers) to stimulate the economy.
• Providing tax breaks to businesses, increasing their profitability.
• Businesses are expected to use the extra capital to:
  • Increase wages for workers.
  • Create more jobs by expanding their business.
  • Reinvest in the company.
• The goal is that increased employment and wages will lead to more consumer spending, creating a trickle-down effect.
• Criticism: Businesses may not reinvest or increase wages; instead, profits may go to executives (crony capitalism).
• From 1980-1985 Tax breaks led to job creation and increased production. By 1987-1988 crony capitalism emerged.
• By late 1980s, CEOs began earning significantly more (e.g., 20 million annually) compared to the average worker (35,000-40,000 annually).
• The speaker asserts that trickle-down economics does not work.

Perestroika and Glasnost

• Perestroika: Restructuring of the Soviet government, moving away from communist ideals and allowing private ownership of businesses.
• Glasnost: Increased transparency and interaction with capitalist countries, including trade and sharing.

Fall of the Berlin Wall

• In 1988, Reagan called on Mikhail Gorbachev to tear down the Berlin Wall, leading to its fall.
• Symbolic end of the Cold War:
  • Represents the end of the separation between capitalism and communism.
  • Signifies the re-establishment of interconnected relationships.
• Berlin Wall falls = End of Cold War

George H.W. Bush Administration

• Served as Vice President under Reagan from 1980 to 1988.
• Promised to downsize the government and not introduce new taxes.
• By 1990, he raised taxes, leading to public dissatisfaction.

Americans with Disabilities Act

• Eliminating physical barriers in public spaces for people with disabilities.
• Examples: Ramps, elevators, ensuring accessibility.

Persian Gulf War (1991)

• Conflict between Iraq, led by Saddam Hussein, and Kuwait.
• Iraq invaded Kuwait in 1990 to acquire its oil reserves, leading to international condemnation.
• The United States formed a broad coalition of armed forces, including the UN, to intervene.
• Operation Desert Shield: Initial deployment of U.S. troops to Saudi Arabia to deter further Iraqi aggression.
• Operation Desert Storm: Massive bombing campaign targeting Iraqi military and infrastructure.
• The coalition's ground offensive led to the retreat of the Iraqi army and the liberation of Kuwait.
• The US lost 292 soldiers in total while the Iraqis lost around 30,000 soldiers.
• President Bush decided not to remove Saddam Hussein from power.
• Saddam's brutal suppression of Kurdish and Shiite rebellions after the war. Accusations of chemical weapon use led to UN inspections.

Bill Clinton Administration

• Elected in 1992, defeating George H.W. Bush.

Whitewater Scandal

• A real estate scandal involving a silent partnership and investments in Arkansas.
• Clinton was not found to be directly involved in any wrongdoing.

Impeachment

• Impeached for perjury relating to an affair with a White House intern, Monica Lewinsky.
• Clinton denied having sexual relations with Lewinsky during an interview.
• He was acquitted and remained in office.
• Second president to be impeached.

NAFTA (North American Free Trade Agreement)

• Eliminated trade barriers between Canada, Mexico, and the U.S.
• Currently, the U.S. has withdrawn from this agreement.

Deregulation

• Clinton cut regulations and red tape for businesses.
• The deregulation led to banks taking greater risks with investments, contributing to the 2008 financial crisis.

Election of 2000

• George W. Bush won the election despite Al Gore receiving more popular votes.
• The election was contested due to issues with voting in Florida.
• Hanging Chads: Incomplete holes on ballots due to the punch-hole system.
• The Supreme Court ruled that ballots with hanging chads were null and void, leading to Bush winning Florida and the presidency.

September 11th Attacks (9/11)

• The attacks were a watershed moment that led to significant changes in American society and policy.

Patriot Act

• Passed in response to the 9/11 attacks.
• Expanded government surveillance powers to prevent terrorism.
• Forced service providers to hand over private informations over to eliminate privacy laws.
• Allowed the collection and storage of phone records, raising concerns about privacy.
• The act was a breach of privacy and unlawful search and seizure.
• The Patriot Act was repealed/downsized around 2014.