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1980, 1988, Economic Policy, WAR ON DRUGS, Big Government, Social Policy,…
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Economic Policy
LEGISLATION
Economic Recovery Tax Act 1981 - highest income band fell 70% to 50% while lowest fell from 14% to 11%. Cut marginal income tax by 20%. Working taxpayers able to set up Independent Retirement Accounts
Omnibus Reconcilliation Act 1981 - cut personal tax from 30% to 25%. Cut federal spending by $25 billion
To solve stagflation - cut tax + cut domestic spending + increased military spending = reduce deficit and restore prosperity. Tools to do this: reduce government intervention and 'trickle down' economics (supply side theory)
How he passed it: Had a clear aim, had a clear pathway, handled congress well, decreased length of debates, targeted swing voters districts, gets shot (approval rating up to 70% from 60%)
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Anti-Union - when 13,000 air traffic controllers went on strike, he sacked them
Big business corporations monopolised industry - reused individualism mentally divided people into worthy and non-worthy
WAR ON DRUGS
Hispanics and African Americans used it as an escape or social mobility - planned shrinkage in inner cities and slum clearance
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Big Government
Savings and Loans Crisis - deregulated - undertook risky investments using customers savings and collapsed - no gov intervention led to loss of money - 1988 S&L companies lost $10 billion and the gov had to pay $150 billion in compensation
Reduction of benefits - AFDC funding cuts (13 million children below the poverty line) - decreased black education grants by 63%
Deregulation - reduced Department of Education staff by 20% - 40% cut in workers in Consumer Product Safety Commission - deregulation of airlines, trucking, railroad and financial industries
Balanced Budget and Emergency Deficits Control Act 1985 - cut welfare from 28% to 22% of federal spending
Only 50% of households maintained standard of living - only because both parents worked - despite his push for 'family values' and SAHM
Social Policy
WOMEN
Defunded Medicaid abortions for the poor - Funded Chastity Centres - 1988 Operation Rescue used sit-ins to block access to abortion centres (Reagan ignored it) - federally funded family planning centres forbidden from discussing abortion - ERA defeated 1982 - Bowen vs Kendrick denied federal funding to pro-choice programmes - Sandra Day O'Connor appointed as first female Supreme Court Judge yet was criticised for being sympathetic to women's issues
RICH AND POOR
Homelessness doubled - average income of poor decreased by $1300 per year - 14% had no health care - African welfare Queen - Wealthiest 1% possessed 8% of wealth
RACE
Homelessness doubled - average income of poor decreased by $1300 per year - 14% had no health care - African welfare Queen 1988 Vetoed Civil Rights Restoration Act, which limited anti-discrimination laws - Supported constitutional amendment to end busing - 7/368 federal judges were black - 1983 MLK Day became a bank holiday - Black middle class grew - black celebrities became popular (Oprah) - African Welfare Queen
Wanted to gain support from the Religious Right: born again Christian, ban abortion, restore prayer - rising divorce rates (40%), teen pregnancy, gay rights, working women
FOREIGN POLICY
Iran-Contra Affair - Nov 1986 Reagan administration covertly ship weapons to Iran to get US hostages released - profits from weapon sales were diverted to Conrta (Anti-Communist) rebels (activity mostly funded by cocaine and a government clause had said that the giv could not get involved) - Uproar in Congress and approval rating dropped from 64% to 44%
Tower Commission - Investigated Iran-Contra - stated that Reagan was inadequate, and had ignored the advice of foreign policy officials - During the trial of Oliver North it was found that Reagan authoried the diversion of funds (may have led to his impeachment if done during the time of the Commission)
End of the Cold War - despite a fiercely Anti-communist stance during first term, his second term him and Gorbachev came to an agreement that would end the Cold War - masses of money put into the Arms Race and SDI meant that the Soviet Union had bankrupted themselves trying to keep up and had no choice but to surrender