Conservative Policies under Reagan and Bush

1
Conservative Policies under Reagan and Bush

• Chapter 25, Section 2 Notes

2
Objectives

• Summarize Reagans economic programs.
• Describe the changes that occurred in the makeup
  and decisions of the Supreme Court
• Identify results of deregulation
• Analyze the presidential elections of 1984 and
  1988

3
Main Idea and Terms/Names

• Reaganomics
• Supply-side economics
• SDI
• Sandra Day OConnor
• Deregulation
• EPA
• Geraldine Ferrara
• George Bush

• Presidents Reagan and Bush pursued a conservative
  agenda that included tax cuts, budget cuts, and
  increased defense spending

4
Reaganomics

• Reagan won election of 1980
• New Economic Plan Reaganomics
• Budget cuts
• Tax cuts
• Increased defense spending
• Wanted to reduce size and influence of federal
  government
• Encourage private investment

5
Budget Cuts

• Downsize federal govt through cutting out social
  programs
• Save money
• Did not effect middle class entitlement programs
• Congress slashed budget of food stamps, mass
  transit, welfare, student loans

6
Tax Cuts

• Supply-side economics
• If people pay less in taxes, they will save money
  (in theory)
• Banks could loan that money to businesses
• Businesses are the base of prosperity
• US Govt lowered income taxes by 25
• Trickle Down Theory more rebates to rich -
  would trickle down

7
Increased Defense Spending

• Reagan doubled the defense budget
• Strategic Defense Initiative (SDI)
• Defense system to protect Americans from enemy
  missiles
• Known as Star Wars
• System would cost trillions of dollars

8
Recession and Recovery

• Economy had sunk into recession
• Worst since Great Depression
• 1983 Economic upturn leads to recovery

9
National Debt Climbs

• Economy still had problems
• Tax cuts helped the rich
• Social welfare cuts hurt the poor
• Federal spending was larger than income deficit
• National debt doubled during Reagans first term

10
Supreme Court

• Reagan nominated conservatives to Supreme Court
• Sandra Day OConnor
• Antonin Scalia
• Anthony Kennedy
• Bush continued the trend
• David Souter
• Clarence Thomas

Scalia
Kennedy
OConnor
Thomas
Souter
11
Supreme Court

• Conservative William Rehnquist was Chief Justice
• Ended liberal control of the court
• Restricted abortion
• Restricted civil rights
• Narrowed rights of accused

12
DeRegulation

• Deregulation cutting back of federal
  regulations of industry
• Reagan removed price controls on oil
• Eliminated federal health and safety inspectors
  for nursing homes
• Deregulated savings and loan industry
• Increased competition and lowered prices for
  consumers

13
DeRegulation

• Reagan cut the EPAs budget
• Government sold public land to private developers
• Opened continental shelf to drilling
• Risks?
• Cut timber in national forests

14
Election of 1984

• Reagan had a conservative coalition
• Business liked deregulation
• Southerners liked small fed. govt
• Westerners liked less environ. restrictions
• Reagan Democrats Dem. too liberal
• 1984 Reagan/Bush v. Walter Mondale/Geraldine
  Ferraro
• Reagan won by a landslide

15
Election of 1988

• George Bush (Reagans VP) v. Michael Dukakis
  (Gov. of Mass.)
• Economy was strong no reason for change
• Bush was part of moral majority
• Bush no new taxes
• Bush ran negative ads low voter turnout
• Bush wins53 of vote