Presidential Election 1980

Issues

Iran Hostages

Those Darn Russkies

The Economy

Reagan Landslide

Election Results

The New Right

"In this present crisis, government is not the solution to our problem; government is the problem.“ - Reagan’s inauguration speech

President Reagan given credit for bringing the hostages home

January 1981

Dramatic Beginning

The Actor

California Cowboy

ReaganomicsPresident Reagan’s Economic Plan

Economics• The Social Science that analyzes the

production, distribution and consumption of goods and services

Economy• System of production, distribution and

consumption

StagflationStagnation• Slow or no economic

growth

• High unemployment

Inflation• High prices

+

US Economy under Carter

• High interest rates

• High inflation

OPEC’s oil embargo

Reagan’s economic solution

Tax cuts

Decrease – social spending

Deregulation

Increase – military spending

Supply-side economicsHow does it work?

Supply creates its own demand

Example:

•When Apple produces more ipads, the price goes down•If the price goes down, demand goes up (more people will buy them)

→ Therefore, produce more to improve the economy More jobs, more money, more stuff

Trickle-down Economics

More Production

More JOBS = More

Consumption

More money moving around the system

The hike in defense spending, and vastly reduced tax revenues resulted in a skyrocketing federal budget deficit .

Reagan’s goal to balance the budget by 1984 became infeasible.

Strategic Defense Initiative“Star Wars”

GDRWest Germany

Democracy• Each person has a vote• Individuality/Expression• Rights• Freedom of movement

$ - Free Market economy Varies: wealthy, middle

class, working class, poor

Communism• No voting (one party)• State-run press/no expression• Totalitarianism (Police state)• Cannot leave

$ - State controlled economy,Most are at the same level,NOT a good economy

DDREast Germany

The Wall

Wiedervereinigungskater

The hangover after reunification

Reactions in the US and Europe

The United StatesA weakened USSR

Democracy in Eastern Europe

No opposition to a Unified Germany

EuropeBritain and France did not support reunification (Italy and the Netherlands agreed)

Weak Soviets = no control over Germany

Feared German aggression

The US and Germany

• NATO

• Trade

• EU– Germany keeps Britain and France from forming

an alliance– German/US relations keep the US involved in

Europe