Chapter 44

The Resurgence of Conservatism, 1981-1992

Chapter Themes

Leading a resurgent conservative movement to power in Washington, Ronald Reagan vigorously pursued new-right economic and social policies.  Under Reagan and his successor, George Bush, these policies brought both economic growth and massive budget deficits that put severe constraints on the federal government.

The early 1980s saw a revival of Cold War confrontations, but a revived détente between the two superpowers developed in the late 1980s.  External pressure and internal change culminated in the liberation of Eastern Europe, the collapse of the Soviet Union, and a rough beginning for the post-Cold War “new world order.”

Chapter Summary

A.  Reagan and Republicans-  1980 and 1984 increasingly Republican control of congress and gains in the Senate. 

1.      Economic Policy-  “Reaganomics” or “supply-side” economics = lower taxes will increase business profits which will lead to worker gains.  Increase available jobs and wages paid.  Business make money by increasing production which requires workers

a.       Military Spending-  increased greatly-  some say led to the economic comeback.

b.      History View- a short recession leads to strong economic gains and low inflation.  Widening of economic gaps between rich and poor.  Led to largest government deficits in history ($ not % and to this point in history).  Wages remained stagnant for working families due to foreign competition and jobs beginning to move over seas.

B.  “New Right”-  Reagan and Bush supported conservative social policies

1.      Affirmative Action-  Bakke case allowed for affirmative action but did not allow race to be the sole basis of admission to a college.  Places limits on Affirmative Action

2.      Abortion-  The Supreme Court grows more conservative but upholds Roe v. Wade igniting passions on both sides

C.   Cold War-  confrontation with the Soviet Union expanded American military engagement overseas.

1.      Grenada ‘83 – troops put down communist uprising

2.      Panama ’89-    “

3.      Nicaragua and El Salvador-  aided conservative forces resisting leftist groups

4.      Arms-control-  agreements reached between US and Soviet Union thawing Cold War

5.      Revolutions – popular unrest broke apart former republics of the Soviet Union.  Soviet Union- broke into 15 separate republics after Bush took office

D.   Middle East-  Iranian revolution touches of unrest in the Middle East

a.       Hostage Crisis-  Reagan trades arms for hostages in Lebanon

b.      Gulf War 1991-  The United Nations under the leadership of Pres. Bush (#41) successfully repelled Saddam from Kuwait.  Leaving Saddam hobbled and under sanctions but in power.  Fear of invading Baghdad and creating a power vacuum leads to a negotiated settlement and U.N. oversight of Iraq.

E.   Boom heads south-   The United States fresh of the victory over Saddam suffers a recession. A tax increase and recession help defeat Bush in the ’92 election despite a previously high approval rating of 90+ percent.  Bill Clinton, a moderate Southern Democrat, becomes the first “baby boomer” president.