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War on the Welfare State
Trattner 16
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Reagan elected 1980
Time of grass roots tax revoltsRepublicans won new groups of voters
Northern white CatholicsWorking class and lower middle class Southern
Whites
Both groups unhappy about taxes, affirmative action
Religious right major factor in election
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Religious Right
Moral Majority led by Jerry FalwellFavored
Abolition of abortionCensorship to limit pornographyPrayer in public schools
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Reagan’s philosophy
Government should not regulate citizens (health & safety, curbs on business)
Taxes should basically support only defense: tax cuts important
Civil rights should not be a Federal matterWomen should perform mainly domestic
tasksSelf sufficiency important
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Interpreted his election as mandate to dismantle the welfare state
Detested big government Wanted reduced federal government
spending for social programsWanted to increase defense spending
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Reagan’s changes in 1981
Favored supply-side economicsTo get economic growth, wealthy persons
and corporations must invest in job-creating businesses
Cut taxes so that there will be more money to invest
Much larger cuts to affluent than to middle and working class
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Between 1981 and 1985
Taxes on lowest 20% of Americans went up average of $137
Taxes on highest 20% of Americans went down by average of $2,531
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More changes
Deep cuts in social programs57 programs turned into block grants
(less for each)AFDC, Food Stamps, work incentive cutDenied benefits to disabled SSI recipientsRegulations reduced in equal opportunity,
health and safety, civil rights and social programs
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Bi-partisan social security reform group did begin taxing social security for higher income recipients
Major recession in 1981-1983Reelected in 1984Second term largely a stalemate
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Second term
Congress fended off other proposed cutsDenial of SSI benefits to disabled
reversed & restored in many cases
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Bush I
1988-1992Peace dividend not invested in social
programs Major social welfare accomplishment:
Americans with Disabilities Act was passed.
Recession – budget deficitIn 1990 14.2% of nation was in poverty
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End of Reagan/Bush I Era
Major increases in defense spendingIncrease in deficitMajor cuts in social programsIncrease in income inequalityPolicy role of government reducedAppointment of conservative judgesResistance to civil rights activities