Chapter 38 Flashcards
A successful California state ballot initiative that capped the state’s real estate tax at 1 percent of assessed value. The proposition radically reduced average property tax levels, decreasing revenue for the state government and signaling the political power of the “tax revolt,” increasingly aligned with conservative politics.
Proposition 13
Term for conservative southern Democrats who voted increasingly for Republican issues during the Carter and Reagan administrations.
boll weevils
Signed into law by President Reagan on October 22, 1986, this streamlined federal tax codes and reduced the tax burden for top-income earners. Its successful passage reflected the Republican Party’s embrace of free market doctrine, or “supply-side economics,” as a cardinal principle of governance.
Tax Reform Act
Economic theory that underlay Ronald Reagan’s tax and spending cuts. Contrary to Keynesianism, supply-side theory declared that government policy should aim to increase the supply of goods and services, rather than the demand for them. It held that lower taxes and decreased regulation would increase productivity by providing increased incentives to work, thus increasing productivity and the tax base.
supply-side economics
Reagan administration plan announced in 1983 to create a missile-defense system over American territory to block a nuclear attack. Derided as “Star Wars” by critics, the plan typified Reagan’s commitment to vigorous defense spending even as he sought to limit the size of government in domestic matters.
Strategic Defense Initiative
Leftwing anti-American revolutionaries in Nicaragua who launched a civil war in 1979.
Sandinistas
Anti-Sandinista fighters in the Nicaraguan civil war. The contras were secretly supplied with American military aid, paid for with money the United States clandestinely made selling arms to Iran.
contras
Meaning “openness,” a cornerstone along with perestroika of Soviet president Mikhail Gorbachev’s reform movement in the USSR in the 1980s. These policies resulted in greater market liberalization, access to the West, and ultimately the end of communist rule.
Glasnost
Meaning “restructuring,” a cornerstone along with glasnost of Soviet president Mikhail Gorbachev’s reform movement in the USSR in the 1980s. These policies resulted in greater market liberalization, access to the West, and ultimately the end of communist rule.
Perestroika
Arms limitation agreement settled by Ronald Reagan and Mikhail Gorbachev after several attempts. The treaty banned all intermediate-range nuclear missiles from Europe and marked a significant thaw in the Cold War.
Intermediate-Range Nuclear Forces (INF) Treaty
Major political scandal of Ronald Reagan’s second term that was revealed in 1986. An illicit arrangement of selling “arms for hostages” with Iran and using money to support the contras in Nicaragua, the scandal deeply damaged Reagan’s credibility.
Iran-Contra affair
Political action committee founded by evangelical Reverend Jerry Falwell in 1979 to promote traditional Christian values and oppose feminism, abortion, and gay rights. The group was a major linchpin in the resurgent religious right of the 1980s.
Moral Majority
Refers to the practice of using race, ethnicity, gender, sexuality, or religion—or any marker of personal identity—to mobilize political support. Practiced by both the left and right, identity politics came into prominence in the 1960s. Sometimes criticized as a divisive regression to tribalism, it reflected an erosion of trust in public institutions and a weakening of shared national values.
identity politics
October 19, 1987. Date of the largest single-day decline in the Dow Jones Industrial Average until September 2001. The downturn indicated instability in the booming business culture of the 1980s but did not lead to a serious economic recession.
Black Monday
U.S.-led multicountry military engagement in January and February of 1991 that drove Saddam Hussein’s Iraqi army out of neighboring Kuwait. In addition to presaging the longer and more protracted Iraq War of the 2000s, the 1991 war helped undo what some called the “Vietnam Syndrome,” a feeling of military uncertainty that plagued many Americans.
Operation Desert Storm