Chapter 50

1. Chapter 50 Morning in America: The Age of Reagan 1980–1993

2. The Ayatollah and the Actor • Americans believe the Shah popular • Impoverished Iranians hate Shah • Shah uses ruthless secret police • Shah forced to flee Iran • Iranian Hostage Crisis • Ayatollah Khomeini seizes power • Jimmy Carter admits Shah to U.S. • Iranians attack embassy, take hostages • Refuse to release hostages until January 1981 (more than one year later)

3. The Ayatollah and the Actor (cont’d) • Election of 1980 • Democrats nominate Carter • Republicans nominate Ronald Reagan • Reagan blasts Carter’s foreign policy, economics • Moral Majority supports Reagan • Reagan wins in landslide • Democratic coalition dead • Congress takes conservative turn • New era begins

4. The Reagan Revolution • President Ronald Reagan • Reagan former actor, California Governor • Reagan good natured, likable • Reagan called “The Great Communicator” • Reagan called “The Teflon President” • Social policies • Reagan wants conservative Supreme Court • Reagan appoints Sandra Day O’Connor • William Rehnquist new chief Justice • Reagan appoints Antonin Scalia

5. The Reagan Revolution (cont.’d) • Reaganomics • Reagan years time of prosperity • Reagan supports supply-side theories • Gives tax cuts to rich to stimulate economy • Supply-side much like “trickle down” • Congress reduces taxes by 25% • Government revenues drop $131 billion • Reagan cuts social programs

6. The Reagan Revolution (cont.’d) • Deficit • Middle class spends tax break • U.S. becomes largest debtor nation • Federal deficit grows worse each year • Reagan calls for balanced budget amendment • Deregulation • Reagan says regulation kills free enterprise • Reagan weakens regulatory apparatus • Profits soar; consumers hurt • Reagan weakens environmental protection

7. The Reagan Revolution (cont.’d) • Reagan deregulates financial institutions • Leads to corrupt practices, failures • SEC drops close supervision of investors • Corrupt insider trading follows • Election of 1984 • Democrats nominate Walter Mondale • Mondale attacks corruption in administration • Geraldine Ferraro is Mondale’s running mate • Reagan wins in a landslide

8. Foreign Policy in the Eighties • Reagan Doctrine • Reagan believes in Cold War • Reagan calls Russia “evil empire” • U.S. will help anti-Communists • South Africa and the Middle East • U.S. refuses economic sanctions against South Africa • U.S. aids anti-Russian rebels in Afghanistan • U.S. sends marines to Lebanon where 241 killed in suicide attack • U.S. bombs Libya

9. Foreign Policy in the Eighties (cont.’d) • Central America • U.S. occupies Grenada • U.S. supports repressive El Salvador government • U.S. supports Nicaraguan contras • Boland Amendments forbids aid to contras • Iran–Contra Affair • Reagan still wants to aid contras • U.S. secretly sells missiles to Iran • Profit from sales goes to contras • Oliver North convicted

10. Foreign Policy in the Eighties (cont.’d) • Changing Policies • U.S. helps push Haiti dictator into exile • U.S. helps push Filipino president into exile • U.S. fails to oust Panama’s Manuel Noriega • Reagan renounces SALT I and II • Reagan begins major military buildup • Reagan introduces Strategic Defense Initiative

11. Foreign Policy in the Eighties (cont.’d) • Toward disarmament • George Shultz new secretary of state • George Shultz and Nancy Reagan influence president towards decision • NATO allies influence president • Soviet Union undergoes change • Mikhail Gorbachev • New head of Soviet Union • Wants perestroika (economic renewal) • Wants glasnost (new freedom) • Gorbachev, Reagan agree to limit missiles

12. The Bush Presidency • Democrats have many would-be nominees • Gary Hart discredited, pulls out • Democrats nominate Michael Dukakis • Dukakis successful Massachusetts governor • Republicans nominate George Bush • Bush has experience in government • Bush chooses Dan Quayle as running mate • Quayle ridiculed as draft dodger, inept • Campaign 1988 • Dukakis attacks Bush’s judgment • Dukakis lacks smooth public persona • Bush exudes confidence, authority • Bush attacks Dukakis as liberal • Bush wins 1988 election

13. The Bush Presidency (cont.’d) • Collapse of communism • Chinese demonstrate in Tiananmen Square • Eastern Europe overthrows communism • Economic renewal fails in Soviet Union • Soviet Union formally dissolves, 1991 • Latin America • U.S. uses military to topple Noriega • Sandinistas lose power in Nicaragua • El Salvador government moderate views

14. The Bush Presidency (cont.’d) • Middle East • Iraq occupies Kuwait • UN calls for boycott • Bush believes boycott inadequate • Bush sends troop to Saudi Arabia • The Hundred Hours War • Iraq ignores ultimatum to leave Kuwait • U.S. leads air attack • U.S. troops win easy victory • Hussein remains in power

15. The Bush Presidency (cont.’d) • Mixed results • War does not distract U.S. voters from recession • Primary Elections 1992 • Bush defeats Pat Buchanan for Republican nomination • William Clinton gains Democratic nomination • Election of 1992 • H. Ross Perot runs as independent • Perot gains 19% of popular vote • Perot takes votes from Bush • Clinton wins with only 43% of popular vote

16. Discussion Questions • Why is the presidency of Ronald Reagan such a controversial and partisan topic? • Evaluate the presidency of Ronald Reagan. What were his successes and his failures? • Examine the presidency of George Bush. What were his achievements? Why was he the first sitting vice president elected since Martin Van Buren? • Who was Mikhail Gorbachev? What was his role, related to Presidents Reagan and Bush, in the dissolution of the Soviet Union? • Explain the Iran-Contra affair. Could Reagan have been impeached for it? Why was he not?