Chapter 33- From The Age of Limits to the Age of Reagan

Politics and Diplomacy After Watergate

The Ford Custodianship
Nixon Pardoned
Ford attempted to spare nation the ordeal of years of litigation and to spare Nixon himself any further
suffering
Fords Diplomatic Successes
Signed arms control accord that was to serve as basis for SALT II
The Trials of Jimmy Carter
Carters Lack of Direction
Provided no overall vision or direction to his government
High Interest Rates
1980 interest rates exceeded 20%
Human Rights and National Interests
Camp David Accords
A formal peace treaty signed by Begin and Sadat on March 26, 1979.
This treaty between Israel and Egypt was Carter's biggest success.
The Year of the Hostages
Iranian Revolution
Iranians were unhappy with the Shah for being repressive and trying to westernize their society. In 1979,
he left Iran.
Khomeini, a religious leader that hated the United States, took control.
On November 4, 1979, the American embassy was invaded by an armed mob. The mob took 53
Americans hostage for 444 days.
Carters Falling Popularity
Combo of domestic economic and international crises damaged already low standing with people
The Rise of the New American Right
The Sunbelt and Its Politics
Rise of the Sunbelt
SE (Florida) , SW (Texas) , and California
Produced progressive and even radical politics
Sagebrush Rebellion
Happened in the West during the late 1970s. Showed the West as a victim of government control.
Members wanted land that the government owned to be opened up for development.
Suburban Conservatism
Suburbs attracted people who wished to flee the problems and jarring diversity of cities
Religious Revivalism
Evangelical Christianity
Grew in the 1980s. A belief in personal conversion through direct communication with God. Jimmy
Carter was a "born again" Christian.
Moral Majority and the Christian Coalition
Attacked the rise in "secular humanism."
Opposed the government's interference in local affairs. Supported free enterprise and a powerful America.
The Emergence of the New Right
Ronald Reagan
Right-wing leader that was raised in the Midwest.
He was an actor at the age of 26. He became conservative after marrying Nancy Davis.
He was president of the Screen Actors guild and a corporate spokesperson for General Electric.
He became the governor of California in 1996.
The Tax Revolt

Proposition 13
Referendum question on state ballot rolling back property tax rates
Attacking Taxes
Way for members of the new right to discredit the government
The Campaign of 1980
1980 Election
Reagan won with 51% of the popular vote and 489 electoral votes.
The Republican Party had won control of the Senate for the first time since 1952.
The American hostages in Iran were released on the day of Reagan's inauguration.
The Reagan Revolution
The Reagan Coalition
Corporate Elites
Kind of people who had dominated American politics and government through much of the nations
history until the New Deal challenged preeminence.
Neo-conservatives
A group of intellectuals that wanted to reassert legitimate authority and reaffirm Western Democratic
values and commitments. They used to be liberals or socialists.
Populist Conservatives
New rights fundamental distrust of the eastern establishment
Reagan in the White House
Supply-Side Economics
Reaganomics
"Supply-side" economics. This plan was made to restore the economy.
A tax reduction would lower the federal budget. Corporations and wealthy people would then be able to
retain their wealth and make new investments.
Deregulation
Environmental Protection Agency: relaxed/eliminated enforcement of major environmental laws and
regulations
Civil Rights Division of Justice Department: eased enforcement of civil rights laws
Department of Transportation: slowed implementations of new rules limiting car emissions
Sources of the Recovery
Tight money policies by the Federal Reserve Board
Worldwide energy glut produced temporary end to inflationary pressures of fuel costs
Federal budget deficits
The Fiscal Crisis
Soaring National Debt
Reagan promised a balance budget
Accumulated more debt in 8 years than the Amer. Govt. had accumulated in its entire previous history
Welfare Benefits Cut
Result of the aging population and dramatic increases in cost of health care
Reagan and the World
SDI
Strategic Defense Initiative a.k.a Star Wars
Through use of lasers and satellites, provide a shield against missiles and make nuclear war obsolete
Reagan Doctrine
To support opponents of communism all over the world. Meant new American activism in the Third
World.
Combating Terrorism
Generally, remained difficult to identify and to control
The Election of 1984
America and the Waning of the Cold War

 The Fall of the Soviet Union

Mikhail Gorbachev
Two new initiatives
Glasnost (openness) dismantling of repressive mechanisms
Perestroika (reform) effort to restructure Soviet economy
Reduced Soviet influence in Eastern Europe
Tiananmen Square
A bloody massacre on June 3, 1989.
The Chinese government sent military forces to stop the mass movement students started. This movement
demanded greater democratization.
Dissolution of the USSR
Started in 1991. A coup by Soviet leaders was collapsed because of public resistance. Gorbachev returned
to power, but then resigned as leader. His resignation caused the Soviet Union to end.
Reagan and Gorbachev
The Fading of the Reagan Revolution
Savings and Loan Crisis
Cost the government half a trillion dollars. Saving banks were expanding, so the government had to step
in to keep the whole industry from collapsing.
Iran-Contra Scandal
This scandal did a lot of damage to the Reagan presidency.
The White House was selling weapons to the Iranian government in order to secure the release of the
Americans being held by the radical Islamic groups.
Some of the money from the arms deal had been illegally funding the contras.
The Election of 1988
Bushs Negative Campaign
Talks trash about Dukakis
The Bush Presidency
Political Gridlock
Promised no new taxes but had burden of national debt faced a Democratic congress with agenda
different from own
1990 Recession
Caused by the debt that corporations and individuals had amassed during the 1980s.
This recession caused bankruptcies and increased the fear and frustration of the middle- and workingclass Americans. It also put pressure on the government.
The First Gulf War
Invasion of Kuwait
August 2, 1990 Iraq invades Kuwait
U.S. to lead other nations in campaign to force Iraq out of Kuwait
Nov 29, United Nations voted at request to authorize military actions to expel Iraq
Allied bombings
Feb 28, Persian Gulf War ends
The Election of 1992
Bill Clinton
Survives bruising primary campaign & personal controversies to win partys nomination
Winner
Ross Perot
Led Bush and Clinton in public opinion polls, but pulled out of the race when the media scrutinized him.
He reentered the race in October, but did not gain back all of his original supporters.