The Presidency of Ronald Reagan

(1981-1989)

Biographical Information:Party: RepublicanYears in Office: 1981-89President Before: Jimmy CarterPresident After: George H.W. BushImportant Bio Information: Born and raised in Illinois BA in Economics from Eureka College 1937-57 made 52 movies in Hollywood President of the Screen Actors Guild from

1947-54, where he opposed communist influence.

1953-62 spokesman for GE and host of the General Electric Theater

1964 campaigns for Goldwater and delivers “A Time for Choosing” speech which launches his political career.

1966-74 Governor of California 1976 Challenged Ford for GOP

nomination.

The Election of 1980 – DemocratPresident Jimmy Carter

The Economy is #1 issue: High inflation Ongoing energy crisis Rising unemployment High interest rates*Carter’s record is mixed at best, and he didn’t hesitate to blame Americans in the 1979 “Malaise Speech.”

Carter on Foreign Policy: Scored a major victory by brokering

the Camp David Accords between Israel & Egypt

Dogged by ongoing Iran Hostage Crisis throughout the campaign

The Election of 1980 – RepublicanGovernor Ronald Reagan

On the economy, Reagan campaigned to: Cut government spending Cut taxes Shift power to the states Rebuild the military*On foreign policy, Reagan advocated a hard line with the Soviets.*On social issues, he is popular with conservatives for his traditional values: family, faith, hard work, and patriotism.

The New Reagan Coalition

The Reagan Revolution was made possible by support from: Southern Conservatives Religious Conservatives –

especially Evangelical Christians Traditional Republicans Western Libertarians *Reagan Democrats (These are

blue collar social conservatives that have traditionally voted Democrat in the past.)

1980 Debate Highlights

The 1980 Election Results

President Reagan survives an assassination attempt on March 30, 1981

“Reaganomics”“Reaganomics” = Supply Side Economics (often called “trickle down” economics by critics) is based on the economic theory that if the government:

Cuts taxes Reduces spending – especially on entitlements Reduce government regulation

The new revenues would be reinvested back into the economy and produce more jobs and ultimately, more tax revenues.

“Reaganomics”During the Reagan Administration: Monetary Policies brought the

Prime Interest Rate down from 21% in 1981 to 7.75% in 1987.

The inflation rate went from 13% in 1981 to 2% in 1986.

Real GDP grew by 4.4% per year from 1983-1989.

The federal marginal income tax rate was cut from 70% to 28%.

“Reaganomics”

As president, Reagan cut entitlements and spending as much as the Democratically controlled House of Reps would allow.There were significant cuts to: Education Food stamps Public housing and the NEAH*Reagan was ultimately unable to cut federal spending as much as he wanted to and has been criticized by some in his party for failing to do so.

Criticisms of “Reaganomics”

• Some states raised state income taxes to offset the cuts to federal programs

• Budget deficits dramatically increased

• The national debt went from $996 billion in 1981, to $2.6 trillion in 1988.

*For some perspective, the national debt in 2008 was $10 trillion and in 2014 it was $17.8 trillion.

“Reaganomics” the Long ViewReagan’s economic message encouraged: Competitive markets Entrepreneurial vigor Minimal regulationTaken with his fiscal and monetary initiatives, Reagan’s policies: Fostered innovation Made it attractive for people

to raise their incomes by getting more education or taking risks and starting a new company.

Many have argued that Reagan’s policies made possible the rapid technological change that started in the 1980s and became the tech revolution of the 1990s.The following high tech giants started during Reagan’s first term:

Reagan & Deregulation

Like Ford and Carter before him, Reagan worked to reduce federal regulations as part of his economic stimulus plan.Deregulation highlights: Reagan fired striking air traffic

controllers (PATCO Union) One result of deregulation was

speculative/corrupt practices in the Savings & Loan industry, which will require a $100 billion federal bailout in the late 1980s and early 1990s.

Reagan appoints first women to the Supreme Court – Sandra Day O’Connor

Reagan also appoints…

William Rehnquist Chief Justice

Antonin ScaliaAssociate Justice

Anthony KennedyAssociate Justice

Reagan’s Cold War Strategy

1. US military buildup to force arms reductions with the Soviets.

2. Regime change in the USSR

3. Emphasized the ideological argument

(USSR = “Evil Empire”)4. Engage the USSR Evil Empire Speech

The Reagan Doctrine Under Reagan, the US dramatically increased US support of anti-communist resistance groups. Reagan wanted to go beyond Containment and “roll back” communism. British PM Thatcher said that the Reagan Doctrine, “Proclaimed that the truce with communism was over…”The Reagan Doctrine targeted:Afghanistan LaosAngola LibyaCambodia NicaraguaEthiopia VietnamIran

First Term Foreign Policy Challenges

LebanonOn a peace keeping mission, US Marines & Embassy Personnel were attacked by terrorist truck bombs, killing 258 Americans.LibyaTerror attacks on Americans in Europe were linked to Libya. Reagan orders airstrikes.Iran-Iraq WarUS supports Iraq during the war and later escorts oil tankers out of the Persian Gulf.

The 1984 Presidential Election:Mondale-Ferraro vs. Reagan-Bush

1984 Debate

The Iran-Contra Affair• Congress passes the Boland Amendment as oversight of the Reagan

Doctrine – especially support of the Contras• Reagan secretly ordered the support of the Contras to continue• To fund the Contras, an arms deal with Iran is secretly negotiated

whereby the US would sell military hardware (for Iran’s war against Iraq). As secondary part of the deal, Reagan hoped that Iran would use its influence with Shi’ite Terrorists in Lebanon to release a number of Americans being held as hostages. (Arms for Hostages Deal)

• In the end, the weapons went to Iran, $18 million went to the Contras, and a few hostages were released.

• Once made public, a Congressional investigation took place over 8 years. Ultimately, some WH officials resigned, few were convicted, and some were ultimately pardoned. Reagan’s legacy largely escaped permanent damage.

Reagan & Soviet Relations

• Reagan refused to give up the “moral high ground” to the communists – he made it an ideological struggle.

• Intelligence reports suggested that the USSR was near economic collapse in an attempt to maintain support for their military. Reagan uses economic warfare to put additional pressure on the struggling Soviet economy.

• Labor struggles in Poland emerge as that nation’s first non-communist union goes on strike. (The US will send millions to Solidarity.) *The movement will also be aided by the new pope, John Paul II.

• The US breaks off arms control talks after the Soviets down a Korean passenger plane.

• Reagan deploys US medium-range Pershing missiles to Europe to put additional pressure on the Soviets.

Reagan’s Strategic Defense Initiative

• In 1983 Reagan announces his plans to develop and deploy a high-tech missile defense system based partially in space.

• Reagan will use the SDI to scare the Soviets and ultimately to force the new Soviet premier, Mikhail Gorbachev, to negotiate.

• During arms talks with Gorbachev, Reagan will steadfastly refuse to stop R&D on the “Star Wars” system.

Reagan’s Soviet Counterpart:Premier Mikhail Gorbachev

Gorbachev becomes Soviet premier in 1984: He is a reformer with liberal

instincts He will purge much of the Soviet

“Old Guard” and replace them with progressives

Expands free speech Initiates capitalist reforms Perestroika = economic freedom Glasnost = greater openness to

new and different ideas

Superpower Summits

Geneva – 1985While the wide ranging discussions allowed the two leaders to get to know each other, no significant agreements were made except to meet again.*Reagan is very critical of the Soviet Union’s human rights record.

Superpower SummitsReykjavik – 1986Previously unscheduled summit to restart arms control talks. While sweeping arms reductions were briefly discussed, Reagan refused to compromise on SDI. This summit is now considered a turning point as both sides acknowledged the need to reduce their respective nuclear arsenals. *Gorbachev acknowledges that human rights is a legitimate topic, the first Soviet leader to do so.

Superpower Summits

Washington – 1987• Gorbachev travels to DC to

sign the Intermediate nuclear Forces Treaty (INF), which is the first arms reduction treaty between the two superpowers.

• Both sides agree to negotiate a Strategic Arms Limitation Treaty. Reagan agrees to negotiate, but will not compromise on SDI.

Superpower Summits

Moscow – 1988 Gorbachev pushes for

Reagan to agree to the START Treaty.

Reagan not interested in the treaty, uses opportunity to discuss human rights.

Vladimir Putin’s son shakes hands with Reagan. Putin was in the KGB at the time.

Reagan’s Legacy• Known as the “Great Communicator”,

Reagan had a gift for taking complicated ideas and making them easy for voters to understand – often using anecdotes.

• The Reagan economic recovery.• Reagan refused to compromise on

communism. He held firm to his motto of “We win, they lose”. (The Berlin Wall comes down in 1989 and the Soviet Union collapses in 1991.)

• After the troubles of the 1960s, the tragedy of Vietnam, the cynicism generated by Watergate, and the malaise of the 1970s, Reagan was the right man, at the right time, to rein still a sense of pride in America.

*Reagan will leave office with one of the highest approval ratings of the 20th century.

Reagan’s Farewell AddressLady Margaret Thatcher eulogizes Reagan