War on the Welfare State

Trattner 16

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

Religious Right

Moral Majority led by Jerry FalwellFavored

Abolition of abortionCensorship to limit pornographyPrayer in public schools

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

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

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

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

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

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

Second term

Congress fended off other proposed cutsDenial of SSI benefits to disabled

reversed & restored in many cases

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

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