Conservative Policies Under Reagan and Bush

1. Conservative Policies Under Reagan and Bush Mr. White’s US History 2

2. Main Idea and Objectives • Main Idea: Presidents Reagan and Bush pursued a conservative agenda that included tax cuts, budget cuts, and increased deficit spending. • After this section, we should be able to: • Summarize Reagan’s economic programs • Describe the changes that occurred in the makeup and decisions of the Supreme Court

3. Part I: Reaganomics Takes Over Based on policies of reducing the federal budget, cutting taxes, and increasing defense spending, Ronald Reagan sponsored his economic policy, nicknamed Reaganomics.

4. Reaganomics • In his first televised speech, Reagan outlined his program to help bring the economy out of recession – would become nicknamed “Reaganomics” • Cut the federal budget – decrease expenses federal government expenses and entitlement programs • Cut taxes – this would encourage private investment, and help the economy recover • Increase defense spending – this would allow the United States to stay ahead of the Soviet Union in military power

5. Decreasing Government Expenses • Reagan’s strategy for decreasing government expenditures included deep cuts for social programs, but not all • Social Security, Medicare, and veterans’ pensions – largely kept intact • Urban mass transit, food stamps, welfare benefits, job training, Medicaid, school lunches, and student loans – cut in large amounts • Some criticized Reagan’s measures as discriminatory – the programs he kept intact benefitted middle class Americans, while the ones that he cut tended to benefit poor or working-class Americans

6. Supply-side Economics • Reagan’s policy relied heavily on the idea of supply-side economics: • If people paid less in taxes, they would save more money • Banks could then loan this money out to businesses, which could invest the money to increase productivity • This increase in productivity would drive the supply of goods up, and the prices would decrease • Congress lowered income taxes by 25 percent over a three-year period

7. Military Spending • Reagan authorized increases to military spending that more than offset the money that he had saved from cutting social programs • Reagan revived development on two controversial weapons systems • MX Missile – ICBM developed for delivering nuclear warheads • B-1 Bomber – Bomber developed for delivering nuclear warheads • Reagan also asked the nation’s scientists to develop a defense system that would use satellite- and ground-based system to shoot down nuclear missiles • This system never went into operation

8. Economic Downturn • As Reagan was working on his economic policies, the country again hit an economic downturn • Lasted from July, 1981 (just before Mr. White’s birthday) until November, 1982 • In early 1983, consumers started to spend more, and this boosted the economy • Tax cuts, declining interest rates, and lower inflation bolstered their confidence in the economy • The Stock Market dropped briefly at the end of this upswing, but then it started to climb again

9. Deregulation • Reagan also pursued a policy of deregulation, which means the reduction of laws, regulations, and restrictions on economic practices • Removed price controls on oil • Eliminated federal health and safety inspections for nursing homes • Deregulated the airline industry – allowed airlines to abandon unprofitable air routes • Deregulated the savings and loan industry • These measures did increase competition, an often resulted in lower prices for consumers

10. Reagan Downsizes the EPA • Reagan also cut the budget of the Environmental Protection Agency • James Watt, Reagan’s secretary of the interior, sold millions of acres of public land to private developers • Watt also: • Opened up off-shore oil drilling • Encouraged timber cutting in national forests • Eased restrictions on coal mining

11. Rising National Debt • Even though the economy was doing well, there were still some economic problems for the country • Tax cuts had benefitted the rich, while social program cuts had hurt the poor • Even though Reagan had made budget cuts, federal spending was still more than what it took in – budget deficit • By the end of Reagan’s first term, the national debt had almost doubled

12. Part II: Judicial Power Shifts to The Right Ronald Reagan appointed several justices to the Supreme Court, and shifted the court towards a conservative attitude.

13. A More Conservative Supreme Court • Reagan was able to further his conservative goals by appointing many new, conservative justices to the Supreme Court • Sandra Day O’Connor – first woman on the Supreme Court • Antonin Scalia, Anthony M. Kennedy, William Rehnquist • After Reagan, President George H. W. Bush nominated David Souter • Bush also nominated Clarence Thomas • Anita Hill, a law professor, testified that Thomas had sexually harassed her when she worked for him in the 1980s • Thomas was still confirmed as a Supreme Court Justice

14. Supreme Court Measures • Through Reagan and Bush, the Supreme Court became much more conservative and much less liberal than it had been in the past • Restricted abortion rights for women • Imposed new restrictions on civil rights laws • Narrowed the rights of arrested persons

15. Part III: Conservative Victories in 1984 and 1988 In 1984 and 1988, conservatives continued to strengthen their power in the federal government

16. Reagan’s Supporters • Reagan and his supporters had been able to construct a large coalition of conservative voters who approved of his policies • Businesspeople – supported economic deregulation • Southerners – welcomed the limits on federal power • Westerners – liked Reagan’s deregulation of the mining, timbering, and grazing laws • Reagan Democrats – agreed with limiting the federal government, and felt that the Democratic party had become too liberal

17. 1984 Opposition • In the 1984 election, Walter Mondale and Geraldine Ferraro, the first woman on a presidential ticket, ran against Reagan and V.P. George H. W. Bush. • The economy was still strong – this was a good sign for Reagan and Bush • Reagan and Bush won in a landslide

18. Election of 1988 • In 1988, with the economy still strong, many people attributed this to Reagan and Bush’s policies • Michael Dukakis ran as the Democratic candidate against George Bush, Republican • Many people didn’t feel a need for a change, and supported Bush • Bush promised to continue the policies of Reagan • Bush attacked Dukakis as soft on crime, and unpatriotic • Bush won the election with 53% of the popular vote, and 426 electoral votes • Bush’s election appeared to many people to be an endorsement of conservative policies

19. Main Idea and Objectives • Main Idea: Presidents Reagan and Bush pursued a conservative agenda that included tax cuts, budget cuts, and increased deficit spending. • After this section, we should be able to: • Summarize Reagan’s economic programs • Describe the changes that occurred in the makeup and decisions of the Supreme Court

20. Wrap-up • So… • One of the things Reagan wanted to do to help the economy was… • And he carried this out by… • One of the reasons that Ronald Reagan appointed more conservatives to the Supreme Court was that… • And the Supreme Court carried out a conservative agenda by…