The 1980s

Ford and Carter

Recession

Cleaning up Watergate

Election of 1776

Recession of 1979 - 82

1982 unemployment reaches 10.8%; bankruptcies rose 50%

584 firms go under in one month

Youngstown, Ohio, 5 mills go under, 25,000 jobs gone

1/3 of U.S. industrial capacity idle

Deindustrialization

Election of 1980

Reagan (50.7%) v. Carter 41%)

Issues - hostage situation, economy, malaise

Government is not the solution, government is the problem.

Are you better off to today than you were 4 years ago.

Reagan Revolution

Reagan background

Coalition of wealthy and corporations, "neo-conservatives"

Reaganomics

Defense

Entitlements

Tax cuts

Idea: tax cuts would free money, thus actually raise revenue

Legislation

Republicans in senate, conbination of Reps. And conservative Dems in House.

Proposed 30% tax cut over three years, got 25%

Budget deficits

Major increase in social security tax

Deregulation

Started by Carter

AT&T break up

Trucking, railroads

Carter increased environmental regulations

Reagan targeted airlines

James Watts,

Corporate champions

Donald Regan

Finance

Credit card economy

Leveraged buyouts

The Evil Empire

Wants to win cold war

Strategic Defense Initiative (Star Wars) v. SALT II

Reagan doctrine - activism in third world, Nicaragua and El Salvadore

Election of 1984

Morning in America

Iran Contra Scandal

Oliver North