Lecture 13 – Conservatism in America, 1980-1992

New Conservative Politics

• In the 1980s:
  • Had victory over inflation
  • Deregulated industry
  • Enormous tax cuts
  • Created a major budget deficit
  • Economic expansion that significantly helped the middle class
  • Brought great wealth to a few
  • Percentage of poor Americans grew
  • Very unequal distribution of wealth

Ronald Reagan: Reagan’s Economic Policy

• Believed in supply-side economics: belief that cutting taxes would allow businesses to expand
  • More individuals would work harder because they could keep more earnings
  • The production of goods, or supply, would increase because more people would have more money to spend

Economic Recovery Tax Act, 1981 

• Largest tax reduction in US history
• Following supply-side economics
• Rates cut from 14 % to 11 % for the lowest income individuals and 70 to 50% for the highest earning individuals
• Business taxes were cut as well
• Economy experiences major growth by 1983 but poverty level increased from 11.7% to 13.5%

End of Social Reform

• Against environmental conservation efforts: blamed environmental laws for a suffering economy
• Promoted less government regulation of businesses
• Did not support labor unions
• Bailed out the savings and loans industry, which increased the federal budget deficit
• Cut funds for food stamps, job training, student aid, and other social welfare programs

Expansion of Civil Rights Slows Down

• Reagan believed with much of the  nation that the nation had given too many rights to minorities
• Conservatives cried that there was now “reverse discrimination” or racism against whites
• Called for “color blind politics” which ignored the fact that racial minorities and women were still severely and obviously lagging behind white men in both jobs and income levels
• Reagan selected conservative justices, as the courts were where the battles for civil rights had been previously fought

Economic Recovery Tax Act, 1981

• Largest tax reduction in US history
• Following supply-side economics
• Rates cut from 14 % to 11 % for the lowest income individuals and 70 to 50% for the highest earning individuals
• Business taxes were cut as well
• Economy experiences major growth by 1983 but poverty level increased from 11.7% to 13.5%

End of Social Reform

• Against environmental conservation efforts: blamed environmental laws for a suffering economy
• Promoted less government regulation of businesses
• Did not support labor unions
• Bailed out the savings and loans industry, which increased the federal budget deficit
• Cut funds for food stamps, job training, student aid, and other social welfare programs

Expansion of Civil Rights Slows Down

• Reagan believed with much of the  nation that the nation had given too many rights to minorities
• Conservatives cried that there was now “reverse discrimination” or racism against whites
• Called for “color blind politics” which ignored the fact that racial minorities and women were still severely and obviously lagging behind white men in both jobs and income levels
• Reagan selected conservative justices, as the courts were where the battles for civil rights had been previously fought

Jesse Jackson

• Jesse Jackson becomes a loud voice for civil rights for African Americans but is perceived ultimately as quite radical and often alienates the white population of the United States.  He becomes quite a controversial figure.

New Obstacle to Women’s Rights Develop

• For the first time, the Republican Party takes a stance on feminism, and takes on a VERY antifeminist tone
• Opposes the Equal Rights Amendment, and a woman’s right to an abortion,
• Reagan eventually appoints Sandra Day O’Connor, a moderate conservative, to the Supreme Court to attract women voters

The Gay and Lesbian Rights Movement  

• Actually grows while other social movements decline
• Focuses on the issue of AIDS, as initially the disease affects more homosexuals than heterosexuals
• Raise many funds and attention to fight the disease and promote awareness
• Also helps closeted  homosexuals “come out of the closet”
• In general there is more tolerance toward homosexuals though of course there is still much discrimination that lasts until the present day

1980s Foreign Policy

• Reagan had accused Carter of being too weak
• Accelerates arms build up
• But eases tensions between the US and the Soviet Union
• Still is very much against the spread of communism, however
• Sends troops to Asia, Africa, Central America, the Middle East and the Caribbean to stop the spread of communism

Militarization under Reagan

• Reagan expands the military
  • Larger navy
  • More nuclear force
  • Creates a more rapid-deployment force
  • New missiles
  • New bombers
  • Spends $216 billion, up from $158 billion per year in defense!

The End of the Cold War

• Major reduction in Cold War problems
• Head of state in the Soviet Union, Mikhail Gorbachev takes over in 1985 and introduces elements of free enterprise, and proclaimed glasnost (a term which allowed for more freedom of expression in the Soviet Union)
• The US, the Soviet Union, and Cuba’s relations improve

George Bush: Bush’s Economic Policy

• He had run on the popular phrase “read my lips, no new taxes”
• Abandons this and raises taxes for the wealthy, on gasoline, cigarettes, alcohol, and other luxury items
• Deficit remains a problem throughout his term

Operation Just Cause

• Bush sends soldiers to Panama to put down the Panamanian dictator, Manuel Noriega, for helping the Contras (rebel group in Nicaragua – Remember, Reagan had actually paid these men as well in the Iran-Contra Scandal)
• Another sign of American imperialism

Operation Desert Storm

• On Jan. 17, 1991, Operation Desert Strom begins
• A 40 day bombing campaign against Iraq
• Storms Kuwait and forces Iraqi troops to withdraw
• Hussein continues to lead Iraq, however
• Only 270 soldiers’ lives are lost (which is of course still important but much smaller compared to the 58,000 lives lost in Vietnam)