Conservative Challenge1980-2000Rise of Conservatism

Supply side economicsSDI

Central AmericaEnd of Cold War

Rise of Conservatism

Leading Issues

• Late 70s: lower taxes, improved morals, less affirmative action

• Taxpayer Revolt 1978: CA passed Prop 13– Sharply cutting property taxes• & services: fire, emergency, schools, etc

– Jack Kemp & William Roth proposed legislation to cut taxes across the board 30%• Becomes basis for Reagan Tax Cuts

Moral Revival• Televangelists

– Pat Robertson, (Christian Coalition) Oral Roberts• Jim & Tammy Fay Baker

– TV audience 60-100 million

– Jerry Falwell’s “Moral Majority”• Rated politicians w/ moral report cards• Financed campaigns to unseat liberals in Congress

– Phyllis Schlaffly led anti-feminist attack on ERA w/ “Eagle Forum”• Group that argued for traditional Biblical view of women’s role in society

• Religious fundamentalists attack “secular humanism” as a Godless creed taking over public ed– Campaigned to get prayer in schools and only teach creationism

• Roe v Wade, 1973: legalized abortion– Sparked right to life movement that now joined Catholics, Fundamentalists

(**life starts at conception)

In a now infamous letter, sent as a plea to supporters to donate money to the Stop ERA organization, Robertson claimed that the feminist movement was "a socialist, anti-family political movement that encourages women to leave their husbands, kill their children, practice witchcraft, destroy capitalism and become lesbians.”

Reverse Discrimination

• 1965- LBJ launched affirmative action to guarantee level playing field– Equal access to education, jobs, housing for all

minorities, women included– After Stagflation of 70s, white males blame

‘reverse discrimination’ for their problems• Claim to be an endangered species

– Regents of UCLA v Bakke (1978) ruled college admissions could not be based on race alone

Reagan Revolution• Actor turned politician- speaker for Goldwater campaign

– Gov CA in 70s– 76 challenged (nearly won) Republican nomination from Ford

• Campaign 1980– 1980-Sen Edward Kennedy challenged Carter for nomination – hurt

Carter in polls– Reagan attacks Democrat’s ‘Big Gov solutions to problems’ & loss of

prestige abroad• Hostages in Iran

– Cites “Misery Index” of 28• Rate of inflation added to rate of unemployment• Asks TV audience: are you better off now than you were 4 yrs ago?

– Republicans: 51% pop vote; 91% electoral vote– Dems: 41% & Independent John Anderson (Moderate R) 8%

• Significance: Reps took Blue Collar vote

Reagan Revolution #2

• 1st time s. 1954 Republicans control Senate– Defeated 11 liberal Dems targeted by Moral

Majority– Also got 33 seats in House• Worked w/ So. Conserv Dems on many issues

– End of ½ Century of Dem dominance of Congress

Reagan Inauguration– Iranians released hostages as Reagan was sworn in to

office• October surprise (Conspiracy theory) investigation later found

insufficient evidence

– 2 months into 1st admin: shot by John Hinkley (w/ press sec Jim Brady• Handled situation w/ charm, humor• Increased popularity

– 4 key promises:• Lower taxes, reduce gov spending on welfare• Build up armed forces, create more conservative CT

– Delivered all 4

Supply side economics• Reagan’s Director of Office of Management &

Budget: David Stockman– Advocate of supply side econ• Tax cuts & cuts in spending should increase

investments in private sector– This should increase production, jobs, prosperity– Unlike Keynesian econ that used increased Gov spending to

boost consumer income & demand

• Supply Side = trickle down econ of 20s– Wealthy prospered– Some of their profits & spending benefit middle class & poor

Federal Tax Cuts

• Congress passed most cuts R asked for– Including 25% personal tax cut over 3 yrs– Cuts in corporate income tax• Most tax relief benefits rich

– Top income tax rate down to 28%– Small investors can put up to 2k per yr into IRA• Individual retirement accounts• No tax until w/drawal

Spending Cuts

• w/ help from ‘Boll Weevils’ (Conserv S. Dems)– $40 Bill cut from:• Food Stamps, • Student loans, • mass transportation

– Savings off set by increased military spending– No cuts in Medicare, Social Security• Retirement age goes up from 62 to 65• Taxed benefits go to wealthy recipients

Deregulation• Promised to get Government off the backs of the

people.– Reduced regulations on businesses and industry– S & L institutions– Mergers & takeovers by large corps– Environmental protection– Auto emissions & auto safety– Secretary of Interior James Watt

• Opened Federal land to coal & timber production & offshore waters to oil drilling– Oil spills follow

Labor Unions• 1 time president of Screen Actor’s guild– Now anti-union• Fired thousands of striking Federal Air Traffic

Controllers– Violating contract by walking out– Decertified their union

• Many businesses now hired replacements for striking workers– Government support for anti union drive leads to decline of

unions in 80s

• Recession of 82 & foreign competition drives down workers’ wages

Recession & Recovery

• 82: worst recession in 50 yrs– Banks failed– Unemployment rose to 11%

• Fall in oil prices, recession stop inflation– Down to 4%

• 83: recovery begins– Japanese auto industry agreed to voluntary quotas on car

exports– Wider gap between Rich & Poor

• Upper income sees increase in standard of living• Poor sees decrease

Social Issues

• Conservatives on the court– Sandra Day O’Connor= first woman – Antonin Scalia– Anthony Kennedy (after Bork Borked)– New Chief Justice: William Rehnquist• Court cut affirmative action in hiring, promotions• Court limits Roe v Wade

– Allows state restrictions

Election 84

• Reagan for Republicans• Democrats: Jesse Jackson & Rainbow Coalition– Walter Mondale (Carter’s VP) w/ Geraldine Ferraro (NY)

• Reagan takes every state except MN (Mondale’s)– 2/3 white males vote for Reagan– 2 groups favor Dems: African Americans & Poor

Budget & Trade deficits• Tax cuts & increased military spending – Federal deficits of over $200 Billion per yr– 1980-88= National debt from $900 Bill $2.7 trillion

• Tax cuts stimulate consumption, not investments– Esp of foreign made & luxury items– Lead to Trade Deficit

» Up to $150 Billion per yr» Much foreign ownership of US real estate and industry

– 1985 US becomes debtor nation for first time since WWI• Congress passed Graham Rudman Hollings Balanced Budget Act

– Across board spending cuts– Limited by Congress, Courts– Still reduced budget deficit $220 Bill 1986--? $155 Bill 1988– Yearly deficits of $200-300 billion killed Dem arguments for social programs like

proposed Universal Health Care

Foreign Policy• Goals of RR: restore military might & superpower

prestige of US– Intensify cold war w/ USSR

• “the focus of evil in the modern world”• Sound check joke that went out live

– Increased spending for defense and aid to anti communist forces in Latin America: hallmark of first term• Build up: Sec Defense Caspar Weinberger projected doubling of

defense budget by 1986• Proposed spending billions for new weapons like

– B1 bomber– MX missiles– Expanded Navy from 450-600 ships– SDI

SDI

• Strategic Defense Initiative– “Star Wars” to critics– Plan: build hi tech system of lasers & particle

beams• To destroy enemy missiles before they could enter US

– Costly, would escalate arms race– Outmoded before production

• Congress cut RR proposals, still defense budget grew– $171 Bill 1981 – $300 Bill 1985

Central America• RR supported right wing dictators “friendly” to the US

– To keep communists out and to overthrow Marxist Sandinista regime in Nicaragua since 1979• CIA director William Casey used covert action in unsuccessful attempt to

overthrow Sandinistas– $$$ (mil aid) - Contras

» Anti-Leftist rebels in Nic» Trying to seize power from Sandinistas

– 1985 Dems (opposing our Nic. Policy) passed Boland amendment prohibiting further aid to Contras

• El Salvador- RR admin spent $5 bill to support Salvadoran Gov against coalition of leftist guerrillas.– Right wing ‘death squads’ connected to El Salv. Army killed over 40k civilians,

including American missionaries

Grenada

• Small island, Caribbean– coup: pro Cuban regime– Oct 83, Marines invaded to prevent establishing

communist military base.– Saw air strip being built– Grenada claimed it was for tourism– Medical students rescued

Iran –Contra Affair• Effort to aid Nicaraguan contras

– Blunder/scandal– Origin: Troubles in Iran since 1980

• Iran v Iraq war• National Security advisor Robert McFarland’s plan (secret) sell US anti-

tank + aircraft missiles to Iran’s gov for its help freeing Americans held hostage by radical Islamic Fundamentalists

• 1986 Oliver North- staff member of NSC’s idea: use profits from arms deal w/ Iran to fund Contras

• RR denied knowing about illegal act (Boland amendment)– Violated congressional budget authority– Tv congressional investigation

» Picture emerged: uninformed hands off prez taking naps, manipulated by advisors» Leaves office one of most pop presidents of 20th C» Most Amers don’t care about Iran Contra affair» Oliver North seen as hero by some

Lebanon, Israel, PLO

• Set backs for Reagan’s foreign policy• 1982, Israel, w US approval, invaded S. Lebanon to stop PLO

terrorist raids into N. Israel• US became involved in evacuating PLO to safe haven and

sending in peace keeping forces to stop Lebanon’s civil war– Apr 83: Arab suicide squad bombed US embassy in Beirut killing 63– Summer 83 Arab terrorists drove bomb filled truck into US Marine

barracks killing 241– 84: US pulls out of Lebanon.– No gains.

PLO (2)

• Sec St George Schultz pushed for peaceful settlement of Palestinian – Israeli conflict by setting up homeland for PLO West bank territories occupied by Israel s. 1967 war– Ams pressure Yasser Arafat in 88 to recognize Is’

rt to exist• Some question remained: does PLO go along with

Arafat on this? Probably not.

Improved US- Soviet Relats

• 85- Reformer Mikhail Gorbachev- New Sov leader– Wants to bring two major reforms:

• Glasnost: openness to end political repression, greater political freedom for citizens

• Perestroika: some free market economic practices– To achieve- must stop arms race & fix Soviet economy

– 87 Gorb & Reagan meet & agree: remove, destroy all intermediate range missiles: (INF agreement)

– 88 Gorb starts pull out of Afghanistan• Puts pressure on Iran/ Iraq to send war. End of Cold War??

Assess RR policy

• RR believed our military built up could force USSR to concede defeat & abandon Cold War

• Others credit Kennan’s containment, Gorb’s initiatives

• Constitutional limits force RR retirement– 1st pres S. Ike to complete 2 terms in office.– Alzheimer’s – admits S. early 90s

Bush & End of Cold War• Former ambassador to UN, CIA director• Election 88: Dem control of Senate 86– Dems hope that huge deficit and Iran-Contra scandal will

help in 88– Michael Dukakis, Gov MA, Dem Candidate w/ Sen Lloyd

Bentsen (TX) v. George Bush w/ Sen Dan Quayle (IN)• Wimp v Shrimp (Opus cartoon, Berkley Breathed)

– Image problem– Bush charged Dems soft on Crime, showed Willie Horton commercial

abo Weekend Furlough program. Anti Black?

• Bush promise: “Read my lips, no new taxes”– Big victory but Dem majorities in both houses

Communism in China

• Tiananmen Square- China, Spring 89- Student demonstration for freedom televised around world– Crushed by Chinese Communist gov w/ tanks..

Killing hundreds, ending brief period of openness in China

Eastern Europe• Open challenges to communism mount• Gorbachov no longer supports govs of eastern Europe w/

arms, armed forces• Poland- Lech Walesa led ‘outlawed’ Solidarity movement

toppled Communist gov there.• Hungary, Czech, Bulgaria, Romania all removed Comm govs• Comms forced out of E. Germany after protestors there tore

down Berlin Wall, hated symbol of Cold War– Oct 90: 2 Germanies reunited w/ blessings of NATO and USSR– E. Republics of Estonia, Latvia, Lithuania declared independence– 91 failed coup against Gorb by communist hardliners

• Dec: remaining Republics dissolved Soviet Union– Gorb: leader w/o country

Russia

• Boris Yeltsin, pres of Russia, joins 9 former Soviet republics to form loose confederation: – CIS: Commonwealth of Independent States– Yeltsin disbands Communist party in Russia– Attempts to establish Democracy and free market

economy

End of Cold War• Sweeping agreements to dismantle nukes– START I agreement (91) reduced # warheads to

10k on each side– Late 92: START II reduced # to about 3k each,

offered econ assist to Russian economy– Bush & US worried about civil wars & violence in

former Soviet Union• 91 Yugoslavia disintegrates• 92 Bosnia & Herzegovina – Civil War starts• US questions: do we still need heavy defense spending

and military bases?

Panama

• Dec 89: US troops invade to remove dictator General Manuel Noriega– Head of drug cartel– To stop importation of P drugs– Troops stay to establish new Gov

Persian Gulf War

• 90: Saddam Hussein (Iraq) invaded oil rich Kuwait– Threatens Western oil sources in Saudi Arabia & Persian Gulf– Bush built coalition of UN members to pressure Hussein to w/draw– US embargo on Iraq- little effect– Congress approved military action

• Jan 91: Desert Storm- ½ mill + Amers joined military units from 28 nations• 5 weeks air strikes & ground war under Gen Schwarzkopf• Iraq concedes defeat & w/d from Kuwait• Sets fire to oil wells on way out

– US stops short of removing Hussein from power– Still Bush approval rating nearly 90%

Domestic Problems

• Nomination of Clarence Thomas– 2 replace Thurgood Marshal, ret. (nom’d by LBJ)– Controversial• Thomas: conservative & charged w/ sexual harassment

of former employee Anita Hill– Public confirmation hearings of Hill testimony dismissed her

charges– Sen confirms

Taxes & Economy

• Savings and Loans failed after deregulation by RR– Cost to tax payers to replace insured deposits & to bail out

some s & l’s: $250 billion– Fed budget deficits $250 bill per yr

• National debt: 1 trillion more under Bush• 1990 Bush agreed to Congress’ Revenue Enhancements of $133

billion• Top tax rate goes to 31%• Fed taxes increased on Beer, Wine, Cigs, Gas, luxury cars, boats• Recession begins, unemployment goes up

– Education President cut funding for schools

Anti incumbent mood• Stagnant economy• Huge budget deficit– Disillusionment grows, w/ push for term limits– US Term Limits Inc v Thorton (95) Sup Ct rules states

cannot limit terms of federal lawmakers w/o constitutional amendment

– When it was revealed that many House members had written bad checks from a private House “bank,” public confidence lessened even more.

– The 27th Amendment banned congressional pay raises from taking effect until an election had seated a new session of Congress, an idea first proposed by James Madison in 1789

Bill Clinton: the First Baby-Boomer President

• 92: Bill Clinton w/ Al Gore Jr. (Dems) – Clinton accused of dodging draft, womanizing– Dems promote econ growth, strong defense, anti crime– Repubs focus: Family values– Third party: Ross Perot

• Dems win, get control of both houses• More minorities, women in cabinet than ever

– Janet Reno: Attorney Gen– Donna Shalala Sec of Health & Human Services– Ruth Bader Ginsburg on Supreme Ct

False Start for Reform

• Clinton calls for acceptance of Gays in military but has to settle for ‘don’t ask; don’t tell’ policy– Appointed wife, Hillary, to revamp health and medical care

system• Critics blasted her, and revision- unveiled in Oct 93• She goes down in polls; becomes liability

– 96, Clinton shrunk Fed deficit to lowest level in a decade• Passed gun control bill (Brady Bill)• Anti crime bill

Terrorism

• Radical Muslim group bombed World Trade Center, NY- killing 6

• Timothy McVeigh bombed Federal building in OK (95) killing 169

• Branch Davidians faced off w/ ATF (feds) Waco, TX- resulted in fire that burned compound, killing men, women, children

Politics of Distrust

• 94: Newt Gingrich led Reps on attack of ‘Clinton failures’ w/ conservative :Contract With America– Reps won all incumbent seats plus 8 in Senate, 53 in

House.. G bcms new Speaker– Imposed new fed laws that put more obligations on state

& local govs w/o providing revenues– Clinton forced to sign Welfare reform bill that cut

programs– G also suggests sending children of welfare families to

orphanages…

• Robert Dole lost (Rep) in 96.. Ross Perot distant third

Abroad• Clinton sent troops to Somalia

– Meddled in Northern Ireland w/o results– Denounced China’s abuse of human rights

• Threatened to punish China… but trade too important.

– Committed troops to NATO for peace keeping in former Yugoslavia– Sent troops to return Jean Bertrand Aristide to power in Haiti– Supported NAFTA made free trade zone of Mexico, US & Canada– Helped form World Trade Organization to work on tariffs, trade– 93: met w/ Yitzhak Rabin & Yasir Arafat at White House

• 95 Rabin assassinated, ending hopes for peace

Sea of Troubles• 93: Clinton ran into trouble with failed real estate investment

in Whitewater Land Corp– Vince Foster, Jr committed suicide.. Manager of Clinton investments – Clinton begins second term w/ Rep majorities in both houses

• Kenneth Starr report on Clinton investigated alleged abuses– 4 yrs investigation cost $30 million. Tried to find wrong doings in

Whitewater case. • Dead end

– Total findings:– Firing White House travel agents, possible misuse of FBI files, perjury

on testimony given during Paula Jones deposition.. Lied about relationship w WH staffer Monica Lewinski• Lewinski tapes made during phone convo w/ friend discussed relationship• Impeachment of Clinton- hearings – impeached by House Republicans, acquitted by

Senate.

Election 2000• George Bush Jr. v Al Gore Jr– Gore wins popular vote; Bush wins electoral vote– Controversy over FL 25 electoral votes, a recount

in Fl• Election called in FL before last three precincts were in

(Dem)• Margin was close, recount put Bush’s lead to 300 votes

but Gore wanted hand count of key counties as allowed by law– Fl Sec St Harris halted recount when Palm Beach missed

deadline (Bro Jeb Bush Gov)

George W Bush• 9/11/01 in first year of first term

– Announced war on Terror– Ordered invasion of Afghanistan, Iraq (2003)

• Failure to find weapons of mass destruction confused public perception of war aims

• Refusal to take responsibility for abuses at Abu Grahib

– Massive Cut taxes for upper classes plus hands off deregulation of banking industry led to rising deficits, bank failures

– No Child Left Behind Act required state standards be met; punished schools w/o helping students

– 2005: handling of Hurricane Katrina and aftermath of destruction widely criticized.• Pres seemed out of touch with human suffering here.

Bush economic policy

• Running for president, argued that Gov surplus belonged to the people & promised to give it back.

• Unemployment tripled in two terms• Poverty rate increased• Deregulated banks ease credit requirements

• Leads to housing bubble• Collapse of banks, business failures, rise in unemployment

– Values of securities tied to Real estate pricing fell– Global bank failures follow– Wall street crashed

• Severe recession starts Dec 2007 (blamed on previous admin)– 2008 Gov bailed out banks, Auto makers