The Carter & Reagan Years

1. The Carter & Reagan Years

2. Jimmy Carter 1977-1981 • Nuclear engineer – US naval academy • Peanut farmer • Georgia governor • Born-again Baptist background plays significant role in decisions • Large Democratic majorities in both houses • Encouraging beginning in shadow of years of conflict btwn branches • A “leaf man” – forest for the trees

3. Foreign Policy • Not having national connections – drew on Trilateral Commission for Secretary of State Cyrus Vance and NSC advisor ZbigniewBrzezinski • Conflict over attitude toward USSR • Vance favoring détente extension • Brzezinski more confrontational

4. Human rights guiding theme in foreign policy appn’ted Andrew Young as UN ambassador Former MLK co-worker Significant commitment to 3rd world (Rhodesia/Zimbabwe & South Africa) Fired after taking PLO meeting Orchestrated give back of Panama Canal We bought it, we paid for it, we built it and we intend to keep it! – Ronald Reagan Control transferred Dec 21, 1999 Resumed full diplomatic relations w/China

5. Camp David Accords (1978) • President Anwar Sadat & Prime Minister Menachem Begin • Arguably greatest foreign policy accomplishment Middle East • Israel agreed to give back territory won in 1967 • Egypt agreed to respect Israel’s borders

6. US supported Shah’s regime overthrown Jan 1979 • Shah exiled in US for med treatment • Islamic fundamentalist regime takes control • Tehran embassy overrun & hostages taken -444 days Iran

7. Initial economic sanctions ineffective World wide public pressure also not getting hostages released Commando rescue mission ordered Mission failed – helicopters collided & 8 killed

8. US-SU relations remained the highest priority • Principle goal was the completion on the SALT II • Waffling between Vance and Brzezinski didn’t help • Carter’s public support for Soviet dissidents & his role in recognizing China irritated the Soviets - delayed agreement until June 1979 • Treaty proposed equal limits on both US & Soviet strategic nuclear forces, • critics complained treaty confirmed Soviet superiority, (negotiated from a position of US weakness - crucial provisions unverifiable) • Instead of a "missile gap" they talked of a "window of vulnerability" under which American land-based ICBMs could be wiped out in a sneak attack. Soviet Union

9. Claims not justified but raised enough support to prevent the Senate from ratifying the treaty. • Worsening relations in late 1979 • Soviet decision to deploy mobile SS-20 missiles in eastern Europe and the NATO counter-response of deploying Pershing and cruise missiles in western Europe • Soviet invasion of Afghanistan in December 1979

10. Carter’s Reactions • Grain & high-tech machinery embargo on SU • AskedCongress for an increase in defense budget • Carter Doctrine (1979): defined the Persian Gulf as a vital area of American interest & US would repel any assault on the region • Announced US would boycott 1980 Olympic Games in Moscow • Approved development of MX missile, a first-strike weapon & signed Presidential Directive No. 59 -emphasized flexibility in nuclear target selection and called for the capacity to wage limited and protracted nuclear war.

11. Domestic Agenda • Created Department of Energy • Reorganized – Health, Education and Welfare into Dept. of Education and Dept. of Health and Human Services • Appnted 3 women to cabinet • Appnted more Hispanic & black to federal jobs & judgeships than ever before • Pardoned “draft dodgers” (about 10,000) • Most conservative Dem president since Cleveland • Presided over de-regulation of the airlines, trucking, railroads, & banks. • Spending on social programs declined during admin • First president to increase defense budget 3years in a row during peacetime

12. Dismissed affirmative government-60’s liberalism finally exhausted itself in the post-Watergate reforms • But still left w/mass of social & entitlement programs -costs hard to control because expenditures dictated by the # of people eligible. (costs exploded during 1970s) • Movement to require balanced federal budget, resistance to busing & affirmative action -rising anti-abortion (right-to-life) movement- feeling gov’t was getting too big/intrusive & had to be curbed. • Federal gov’t became scapegoat for problems conservatives saw in nation(in actuality the fed.work force as a %of the population had fallen--state and local governments had gotten bigger).

13. Appointed Paul Volcker -head of the Federal Reserve- advocated restrictive monetary policy, • Double digit inflation • Prime rate reached 20% by 1980 – killed small business & construction • Huge impact of oil on economy – imbalance of foreign trade – really had to engage in beginnings of global interdependent economy

14. Energy • Oil consumption & importation increased • Carter presented comprehensive energy plan to Congress - became bogged down & public apathetic • The Iranian oil crisis of 1979 again caused gas lines (1974) • Prospect for alternative sources bleak • Oil and gas reserves appeared limited • Coal reserves appeared unlimited (health, safety, &environmental concerns) • Three Mile Island accident -safety of nuclear power plants raised • Solar energy &synthetic fuels(major hopes of Carter's plan) remained economically • impractical

15. A National Malaise • Loss of confidence – nation in general & in president/administration • Was Carter the victim or the cause? • Lacked vision & desire to educate and persuade the American people • In this sense, he was like the last engineer president, Herbert Hoover • July 1979 – after 10 days @ Camp David delivered “malaise” speech on tv • American people too concerned with “material goods” “worship self-indulgence & consumption” – in a “moral & spiritual crisis”

16. Election of 1980 • “ABC” movement in Democratic Party (Anybody But Carter) • Seen as befuddled & having mismanaged nation’s affairs • Challenged for nom by Edward Kennedy (hurt by past accident) • Reagan clear Repub pick (George HW Bush as VP) • Reagan attacks on basis of gov’t too big, inflation too high • Carter paints Reagan as trigger happy cold warrior – too unstable for nuclear age • John Anderson – liberal Repub ran as Indep

17. Results were a rejection of Carter, but not really endorsement of Reagan (won narrow majority of votes cast only twenty-seven percent of the voting population actually voted for him (due to low voter turn out)The low election itself was a reflection of the national malaise. • The Electoral College: Reagan:489 Carter:40 Anderson:0 • Popular Vote: Reagan:50.8% Carter:41.0% Anderson: 6.6% • The Electoral College results showed Reagan's support spread fairly even around the country • The Republicans did capture control of the Senate

18. Ronald Reagan • New breed of Republican • Former actor –supporter of FDR • Head of Screen Actors Guild fought communists in union • Spokesman for GE – support for priv. enterprise – persuasive & powerful • Gov. of Calif. – more involved in party politics • Was able to deliver “message” and sell it regardless of critics or situation • Won support of Relig. Right • Hostages released on inaug. day – frozen Iranian accounts freed in exchange for men

19. Leadership – Reagan style • All gov’t should be small but… • Military’s primary goal is to stop communism & should be a large as necessary to do so • President does not need to be involved in day-to-day decision making – staff does that • Heavy dependence on close advisors (really ran the show & controlled access to pres.) • Kept “light” schedule w/lots of • downtime • Used media to keep message of • patriotism means supporting his plans • Image as strong, resilient (turned • 70 in 1981)

20. 4 are injured – James Brady most seriously March 30, 1981 “Honey, I forgot to duck” “I hope you’re all Republicans”

21. Reaganomics • Had promised to fix econ • Supply-side economics – need to relieve tax burden on top (wealthiest individuals & businesses) so they can invest & create healthy econ for all • Economic Recovery Tax Act: 25% cut over 3yrs • Fed budget must be cut since less tax $s but w/expanding econ more $ will come in to help reduce deficit • Cut lots of federally funded programs – welfare programs • Huge Congressional support (sweeping leg. in first few months)

22. Deregulation – got gov’t “out of the way”: • Enviro protection – Sagebrush Rebellion – would save $ (EPA relaxed regs) • Justice Dept. eased up on civil rights laws • Dept. of Transport. slowed enforcement of car emission & safety standards • Fewer programs for poor & needy would build responsibility & self initiative – would benefit from “trickle down effect” of tax cuts • Plan never fully in place – Cong won’t cut Soc Sec & Medicare enough & Reagan unwilling to cut defense spending • Won’t raise taxes so deficit skyrockets (will hit $100 billion in 1982)

23. 1982 econ worsens – unemployment up to 11% • Recovery begins 1983 and improves quickly • Reagan plan was working? • Allows for deficit to grow even more • More a result of years of tight money policy • International “energy glut” controlled oil prices • Lots of gov’t spending • Stock market booms for years

24. Foreign Policy • Reemphasis on fighting communism • Already declining relationship with SU only deteriorates (“evil” empire) • SU’s crackdown on Polish labor movement (Solidarity) only made things worse • Arms control/restriction still an • issue • SDI – enormous emphasis & • expense for answer to our missile • gap problems • SU & US critics argued Star • Wars would only make it worse & • needed to be 1st reduction

25. Reagan Doctrine • Expanding anti-communist stand • No Soviet involvement/ support necessary to be a target • Third-world activism reignited • Grenada – Operation Urgent Fury • El Salvador – helped gov’t resist insurgents • Angola, Ethiopia, Nicaragua – support rebels against their communist gov’ts • Lebanon – get involved in effort to oust PLO guerrillas – marines remain as peacekeepers until bombing attack on barracks kill 241 • Increase in terrorist activities (hijackings, hostages, bombings) worldwide

26. Election of 1984 • Walter Mondale & Geraldine Ferraro • Reagan & Bush -confident in accomplishments of economy & international standing “It’s morning in America” • The Electoral College: • Reagan:525 • Mondale:13 • Popular Vote: • Reagan:58.8% • Mondale:40.6%

27. Iran-Contra Affair • White House personnel trying to broker release of hostages held by Iranian-tied group in Lebanon • Offer to sell Iran arms -through Israel- in exchange for getting hostages out • Didn’t go thru congressional oversight committee as should have • NSC using profits from arms sales to get $ & weapons to Contras in Nicaragua (Boland Amendment said no more aid allowed) • Tower commission to • investigate what went on & who authorized what

28. Revelation that NSC staff-Admiral John Pointdexter & Colonel Oliver North - saw themselves empowered to create secret gov’t w/in gov’t-free to pursue hidden agenda beyond bounds of any laws or legislative restraint • Pointdexter, North, and CIA Director William Casey had hoped to use the arms sales profits not only to help Contras, • but also to finance CIA-like • operations outside the • bounds of the Agency and • congressional oversight.

29. Soviet Union • Mikhail Gorbachev’s new radical plans for SU • Glasnost – “openness” • Perestroika – “restructuring” • Would need to dial back Cold War expenses to make these plans work • Multiple summit meetings & national visits • Ultimately reductions in nuclear missiles • More than a thaw – signals end of Cold War

30. Economic Legacy • Borrowing to finance deficits raised interest ratesmaking American exports uncompetitive & leading to expanding trade deficits, particularly w/Japan • US transformed from largest net creditor nation to largest net debtor nation. • Deindustrialization & growing service sector led to decrease in high-paying jobs & accelerated trend toward two-tiered society - the affluent & the poor • Homelessness increasingly serious problem - many individuals & growing number of families

31. Inner city, increasingly sinking into poverty, more economically & socially isolated from rest of country • 1987 Wall Street crash, worst crash since Great Crash of 1929 – Black Monday • Sudden realization that fundamentals underlying Reagan prosperity --massive government deficits & overseas borrowing--were unsound • 1987 -rejection of major appntmnt to Supreme Court-- conservative legal ideologue Robert Bork

32. Election of 1988 • Democratic race for nomination crowded: • Gary Hart, early front-runner, self-destructed early in race in sex scandal. • Michael Dukakis gets it as a matter of sheer endurance & superior financing & organization • Repub run George Bush-early flack over choice - Dan Quayle • Goes after Dukakis’s Mass. governor record hard: • vetoed bill requiring students to say pledge of allegiance, had opposed death penalty & mandatory school prayer, most importantly he authorized furloughs for prisoners who went on to commit violent crimes - made Willie Horton household name & rallying cry. • Dukakis did not help himself by not responding to Bush's attacks or initiating some of his own until it was too late. • Campaign was more than any before it exercise in media manipulation -devoid of pressing issues (the deficit, the environment, the economy, employment, and homelessness) and tailored into "sound bites”

33. The Electoral College: Bush: 426 Dukakis:111 Popular Vote: Bush: 53.4% Dukakis:45.6%