From “The Age of Limits” To the Age of Reagan

1. From “The Age of Limits” To the Age of Reagan • “Age of limits”- Americans learning to deal with less of everything: money, energy, possibilities, global power. Challenged by a conservative rejection of heady visions and a reinforced commitment to economic growth, international power, and American virtue.

2. From “The Age of Limits” To the Age of Reagan • Helped to legitimize the ‘free market’ and gathered support for a new American role in the world. Personal popularity gained him large support.

3. Policies and diplomacy after Watergate • American people had little faith in the Presidency after Richard Nixon’s involvement in Watergate. Ford attempted to rebuild confidence.

4. Policies and diplomacy after Watergate • Ford granted Nixon ‘“A full, free, and absolute pardon” for any crimes he may have committed during his presidency’. Pardon caused a decline in Ford’s popularity.

5. Policies and diplomacy after Watergate • Ford enjoyed little success in efforts to control the economy. Rejected the idea of wage and price controls and called for ineffective voluntary efforts. Supported high interest rates, opposed increased federal spending and resisted pressures for a tax reduction. Major recession in 1974 and 1975.

6. Policies and diplomacy after Watergate • OPEC- After 1973 oil embargo OPEC raised the price of oil by 400% in 1974. American dependence on OPEC continued to grow, a principle reason for an 11% inflation in 1976.

7. Policies and diplomacy after Watergate • Foreign Policy- Retained Henry Kissinger as Sec. of State and continued Nixon’s policies. Met with Leonid Brezhnev and signed an arms control, the basis for SALT II. Kissinger produced a new accord which returned large portions of Sinai to Egypt (from Israel). 1976 Mao Zedong died, bringing Chinese desire to expand ties with the US.

8. Policies and diplomacy after Watergate • Election of 1976- Ford’s policies under heavy attack from right and left. Ran against Regan (Ind. Republican) and Jimmy Carter (Democratic), a former governor of Georgia.

9. The Election of 1976

10. Policies and diplomacy after Watergate • Carter had campaigned for presidency as an “outsider.” Represented Americans suspicious out entrenched bureaucracies and complacent public officials. Surrounded himself with a group of close knit associates from Georgia. Exceptionally intelligent, critics charged no overall vision or direction to his government. Left office in 1981 one of the least popular presidents of the century.

11. Policies and diplomacy after Watergate • Devoted most of his time to problems of energy and economy. Moved to reduce unemployment by increasing public spending and cutting taxes. Unemployment dropped, inflation soared. Prices increased by 10% annually in Carter’s last two years. Appointed G. William Miller and Paul Volcker, conservative economists, to run the Federal Reserve Board- ensured a policy of high interest rates and reduced currency.

12. Policies and diplomacy after Watergate • 1980- Interest rates had risen- highest in American history, sometimes exceeded 20%. Summer of 1979, instability in the middle east produced major fuel shortage.

13. Policies and diplomacy after Watergate • Carter, under pressure, retreated to Camp David and emerged ten days later ready to deliver to the people. Most notable for his bleak assessment of the nations condition. Complained of a “crisis of confidence” that had struck “at the very heart and soul of our national will.” American people believed that he was blaming them. Firing several members of his cabinet deepened his political problems.

14. Policies and diplomacy after Watergate • Pledge to build a new basis for American foreign policy, in the defense of Human Rights. Spoke sharply against countries which violated human rights (U.S.S.R). Worked on treaties to turn control of Panama Canal to Panama. Senate ratified 68-32, one vote higher than the necessary 2/3.

15. Policies and diplomacy after Watergate • Camp David Accords- arranging a peace treaty between Israel and Egypt. Signed on March 26th 1979.

16. Policies and diplomacy after Watergate • China- December 15, 1978- formal diplomatic relations between US and China.

17. Policies and diplomacy after Watergate • US government provided military and political support for Shah of Iran. By 1979 he was hated by the people of Iran. Fled the country in January 1979. United States attempted establish cordial relations with succession of Shah.

18. Policies and diplomacy after Watergate • Iranian Revolution- Led by Ayatollah Ruhollah Khomeini. Shah arrived in New York for medical treatment. November 4, 1979- armed mob seized the American embassy, holding 53 Americans hostage for a year. Demands of returning to the Shah to Iran were made in exchange for hostage freedom.

19. Policies and diplomacy after Watergate • December 27, 1979- Soviet troops invaded Afghanistan. Offensive moved caused American’s to pull out of 1980 summer Olympics and withdrawal of SALT II from Senate consideration.

20. Policies and diplomacy after Watergate • Iranian Revolution and Soviet advancement lowered Carter’s popularity and allowed for an alternative political force.

21. The Rise of the New American Right • “Sunbelt”- term coined by political analyst Kevin Phillips to describe a collection of regions that emerged together in postwar era. Included the southeast (particularly Florida), the southwest (Texas) and California. Helped transform political climate with strong populist traditions in the sunbelt. Made the politics of the regions even more hostile towards the government.

22. Growth of the Sunbelt, 1970-1990

23. The Rise of the New American Right • Sagebrush Rebellion- Emerged in the west in 1970’s mobilized conservative opposition to environmental laws and restrictions on development. Portrayed the west as a victim of the government.

24. The Rise of the New American Right • Suburban Conservatism- suburbs held people wishing to flee the problems and diversity of cities.

25. The Rise of the New American Right • Time magazine reported assumptions that religion was virtually extinct in America, titling a 1966 edition “Is God Dead?” The 1970’s brought religion back into American life, the most powerful revival since the Second Great Awakening. Rise of Evangelical Christianity- “born again Christians”. More than 70 million Americans described themselves as “born again”.

26. The Rise of the New American Right • Religion was a large part of the new right, a diverse and powerful movement in the 1970’s that cumulated with Ronald Regan’s campaign for president. Regan was a modest Midwesterner who went to Hollywood at the age of 26.

27. The Rise of the New American Right • 1964 television speech on behalf of Goldwater. “I don’t think we should turn the high command over to leaders who were traitors during the battle that just ended” (1965- after Vietnam). Ford’s presidency also helped the rise of the right.

28. The Rise of the New American Right • Ford appointed Nelson Rockefeller (gov. New York) to Vice Presidency. Regan challenged Ford causing Rockefeller to be replaced with Robert Dole (Kansas) in 1976.

29. The Rise of the New American Right • Began in 1978 when Howard Jarvis, a conservative activist in California, launched the first successful major citizens’ tax revolt in California with Proposition 13, a referendum question on the state ballot rolling back property tax rates. The idea eventually spread to national politics.

30. The Rise of the New American Right • The tax revolt helped Republican conservatives halt and even reserve the growth of the federal government which they had been unable to do for the past thirty years

31. The Rise of the New American Right • By separating the issue of taxes from the issue of what taxes supported, the right found a way to prevent the government’s ability to expand and launch new programs with out antagonizing voters who supported the programs. The right exploited the resentment of paying higher taxes.

32. The Rise of the New American Right • Carter had lowest popularity polls of any president, and barely managed to win the Democratic nomination over Edward Kennedy.

33. The Rise of the New American Right • Republic Party rallied behind Ronald Reagan. He linked his campaign to the tax revolt by promising substantial tax cuts. Promised American “strength and pride” in the world. He benefited from Carter’s inability to resolve Iran Crises.

34. The Rise of the New American Right • Election of 1980: Reagan won 51% of the vote, Carter won 41%. Reagan won 489 electoral votes and the Republicans won control of the Senate.

35. The Election of 1980

36. The Rise of the New American Right • Iran hostages were released on the day of Reagan’s inauguration. Iran released them for billions of Iranian assets that the Carter administration froze in U.S banks.

37. The “Reagan Revolution” • Reagan owed his victory to the emergence of a powerful coalition of conservative groups. This Reagan coalition included a small but highly influential group of wealthy Americans associated with the corporate and financial world. These groups were united by a firm commitment to capitalism and to unfettered economic growth.

38. The “Reagan Revolution” • They believed that the market offers the best solution to economic problems, a deep hostility towards government interference and America life depends on the health and strength of the corporate world. The group opposed the “redistributive” politics of the federal government and hostility to the rise of “antibusiness” government regulations.

39. The “Reagan Revolution” • Another group that emerged was a group of intellectuals known as “neo-conservatives” Their principal concern was to reassert legitimate authority and reaffirm Western democratic, anticommunist values.

40. The “Reagan Revolution” • These two groups joined in an alliance with the growing “new right.” This new right distrusted the “eastern establishment.” They had a fear of the hidden influence of such establishment institutions and people as the Council of Foreign Relations, Henry Kissinger and the Rockefellers

41. The “Reagan Revolution” • These populist conservatives opposed centralized power and influence, a fear of living in a world were distant, hostile forces are controlling society. Reagan generated support for these groups and at the same time appealed to the conservatives.

42. The “Reagan Revolution” • Reagan was a master of television, a gifted public speaker, and appeared rugged, fearless, and impervious to danger. • He surrounded himself with tough energetic administrators who relied on him for general guidance and was not much involved with day-to-day affairs. Reagan used the office to generate support for his administrations programs.

43. The “Reagan Revolution” • Attempt to restore economy known as supply side economics or Reaganomics. This idea operated from the assumption the problems were a result of excessive taxation, which left inadequate capital available to investors. Solution was to reduce taxes, with generous benefits to corporations and wealthy individuals to encourage new investment. The tax cut meant the government would have to cut spending.

44. The “Reagan Revolution” • “Deregulation”- practically a religion in the Regan administration. Sec. of Interior James Watt, opened public lands and water to development. Environmental Protection Agency relaxed or eliminated enforcement of laws.

45. The “Reagan Revolution” • 1982 Recession- Unemployment reached 11%. Recovered rapidly, unemployment rates dropped steadily. The stock market rose, Dow Jones rose to 777. Five years later it passed 2,000. By early 2000, Dow Jones averaged 11,000

46. The “Reagan Revolution” • Regan promised a balanced budget within four year of taking office. Before the 1980’s the highest budget had been 66 billion (1976). Throughout the 1980’s it exceeded 100 billion. “Entitlement” programs (welfare) were cut and limited to decrease the budget. Would not agree to reductions in military spending. Reductions for food stamps and low interest housing.

47. The “Reagan Revolution” • United States should once again become active and assertive in opposing communism and supporting friendly governments. • Relations with the Soviet Union became chilly in the first few years of Regan’s presidency, often referred to the Soviet Union as the “Evil Empire”. Accused of harboring terrorist.

48. The “Reagan Revolution” • SDI- Strategic Defense Initiative (“Starwars”). Could provide a shield against nuclear war. USSR claimed that it would just elevate tensions and mount the arms race.

49. The “Reagan Revolution” • Regan Doctrine- Overall American involvement in Third World Countries. Mostly Latin America (1982 troops went into Grenada)

50. The “Reagan Revolution” • Lebanon- Israeli army launched an attack in 1982. America marines remained in the city to protect the government (which was in the middle of a civil war). American’s became the target in Beirut which left 241 marines dead.