Did Reagan Bring Fundamental Change to the Economic Policy of the USA?

Question 1

Johnson

Difference

Answer 1

Great society expanded welfare support
1965-1973, $15.5bn
Higher Education Act (1965) spent $650 million on helping 11 million poor students
Food Stamp Act (1964) extended Kennedy food stamp programme

Question 2

Johnson

Similarity

Answer 2

Considered defence to be a key area of expenditure
1965-1973, $120bn spent on Vietnam War alone

Question 3

Nixon

Difference

Answer 3

With Nixon’s support, Congress est. Environmental Protection Agency amd Occupational Safety and Health Administartion (1970)
Nixon’s New Economic Policy (1971) introduced first peacetime wage-price freeze

Question 4

Nixon

Similarity

Answer 4

Called for ‘New Federalism’
Attempted to limit welfare support- Family Assisstance Plan (1969) and reduced funding for Great Society programmes (shrunk OEO + closed 59 job corps centres)

Question 5

Ford

Difference

Answer 5

Provisionally supported higher taxation, but instead proposed tax cut of $16bn

Question 6

Ford

Similarity

Answer 6

Made efforts to reduce inflation- Whip Inflation Now (1974)

Question 7

Carter

Difference

Answer 7

Created more gov agencies- Department of Energy (1977)- regulated business to conserve oil reserves
Expanded welfare support, $4bn public works programme (1977), expanded earned income tax credit`

Question 8

Carter

Similarity

Answer 8

Anti-inflationary approach- Paul Volckner. Workers disliked focus on inflation- froze fed wages + criticised striking miners in 1977
Deregulated industry- Airline Deregulation Act (1978), and applied to communications + transport industries

Question 9

Bush

Problems

Answer 9

Election slogan of ‘Read my lips, no new taxes’ impossible
National debt $2.7 trillion (3x 1980)
By 1992, budget deficit risen to $400bn
Major crisis in savings and loans- rescue plan (1989), projected to cost $50bn, by 1990 $325bn

Question 10

Bush

Actions- Cuts + Rises

Answer 10

Spending cuts and tax rises
1990- fed income tax raised from 28% to 31%, military and domestic spending cut by $492 bn, federal reseve board lowered interest rates to 3.5% to stimulate economic growth

Question 11

Bush

Actions- Military Cuts + Trade

Answer 11

From 1991- Closed 31 major military bases, costing 70,000 jobs
Agreed to North American Free Trade Agreement- eliminated barriers to trade between USA, Canada, Mexico- relocation of industry + loss of jobs

Question 12

Bush

Actions- Social Conservatism

Answer 12

Vetoed family + medical leave legislation, civil rights bill (to counter employment discrimination), and bill he claimed would give unemployed ‘excessive’ benefits
But doubled those supported by Head Start

Question 13

Bush

Impact of Policies- Unemployment

Answer 13

By June 1992, unemployment at 8 year high of 7.8%
Big Three car manufacturers fired 60,000 workers, other corporations fired middle managers
Perception of Bush administration as of little help to American worker

Question 14

Bush

Impact of Policies- Failure to Meet Expectations

Answer 14

Nothing to help workers worried about family incomes- political disillusionment
Failed to promote socially conservative agenda- infuriated RR, weaked Bush’s bid for re-election

Question 15

Bush

Impact of Policies- Loss of Support

Answer 15

Tax rises led voters to reject Bush
Lost 38 million to 44.9 million votes to Bill Clinton in 1992
Bush seemed helpless and uninterested, Clinton gave impression he could ‘feel their pain’