Lesson 1: The Conservative Revolution

Question 1

Balanced Budget Definition

Answer 1

a condition that exists when the government spends only as much as it takes in

Question 2

Contract with America Definition

Answer 2

the legislative package drawn up by House Republicans in 1994 that included trimming social welfare programs and slashing taxes

Question 3

Deregulation Definition

Answer 3

a reduction of restrictions on business

Question 4

Downsizing Definition

Answer 4

reducing a workforce

Question 5

Moral Majority Definition

Answer 5

a religious organization that backed conservative political causes in the 1980s

Question 6

NAFTA (North American Free Trade Agreement) Definition

Answer 6

The North American Free Trade Agreement, an agreement to remove barriers to trade between the United States, Canada, and Mexico, ratified by the U.S. Congress in 1993

Question 7

Reaganomics Definition

Answer 7

President Reagan’s economic program that cut taxes, cut federal spending on social programs, and cut regulations affecting business

Question 8

Recession Definition

Answer 8

an economic slump that is milder than a depression

Question 9

Surplus Definition

Answer 9

extra; condition that exists when income exceeds spending

Question 10

In 1976, who did the Republicans nominate as their candidate? How did the Democrats nominate? How did Jimmy Carter use the fact that he was a Washington “outsider” to his advantage? What led to Jimmy Carter winning the Election of 1976?

Answer 10

In 1976, Republicans nominated Ford for President. Democrats chose Jimmy Carter, the former governor of Georgia. Carter had no experience in Washington but used to his advantage the fact that he was a Washington outsider. He pointed out that “the vast majority of Americans … are also outsiders.” After years of scandal in Washington, Carter’s fresh face and promises of a new approach carried him to a narrow victory.

Question 11

What did President Jimmy Carter’s term begin with? In his first year, about how many major bills did he send to Congress? What did they include? How did his lack of experience lead to minimal support by Congress? How did President Carter struggle with the problem of inflation?

Answer 11

Carter’s term began with a whirlwind of activity. In his first year, the new President sent Congress almost a dozen major bills. They included reforms in the Social Security system and in the tax code. But Carter’s lack of experience in Washington hurt him. Congress refused to support his legislation. The President did not fare much better with the problem of high inflation. When the government tried to slow inflation, prices only kept rising. Many families had trouble paying for food, clothing, and rent.

Question 12

Although President Carter was a Democrat, how did he utilize conservative solutions? How did he use conservative solutions to combat high inflation? Who is Paul Volcker? How did he use conservative solutions to deregulate the transportation industry? What was the result? What was the Airline Deregulation Act of 1978?

Answer 12

Although Carter was a Democrat, he adopted conservative solutions to the problem of high inflation. He cut government spending and appointed Paul Volcker as Chairman of the Federal Reserve. Volcker used monetary policy to attack inflation by reducing credit and raising interest rates. Carter also adopted a conservative position when he took steps to deregulate the transportation industry. Reducing regulation increased free market competition. Policies such as the Airline Deregulation Act of 1978 brought lower prices for consumers.

Question 13

What was President Carter’s main stance in foreign affairs? What was the Helsinki Agreement, signed before Carter took office? What did Carter advice?

Answer 13

In foreign affairs, Carter was a strong defender of human rights. The United States had signed the Helsinki Agreement just before he took office. Thirty-five nations pledged to respect basic rights such as religious freedom and freedom of speech. The United States, Carter said, should keep this pledge and not aid countries that violated human rights.

Question 14

How was the United States relationship with the Middle East before Jimmy Carter’s presidency? In Iran, who did the United States support? What happened to this leader after the Iranian Revolution in 1979? Which religious leader took control of Iran? How did the shah and the ayatollah compare?

Answer 14

Even before Carter’s presidency, the United States was deeply involved in conflicts in the Middle East. Iran was ruled by a shah who had U.S. support. Then, in 1979, the Iranian Revolution forced the unpopular shah to flee. A religious leader, Ayatollah Khomeini (i yuh TOH luh koh MAYN ee), took control of Iran. The shah had been a firm ally of the United States. The ayatollah was strongly anti-American. Where the shah had favored westernizing Iran, the new ruler wanted to enforce a strict, old-fashioned version of Islam. Neither, however, favored democracy.

Question 15

In November 1979, what did President Carter allow? What did Iranian Revolutionaries do in response? When were the hostages released? What was the Iranian Hostage Crisis? How did it affect the United States and Iran’s relationship and domestic politics?

Answer 15

In November 1979, President Carter let the shah enter the United States for medical treatment. In response, Iranian revolutionaries seized the American embassy and took 53 Americans hostage. The hostages were not freed until January 1981. The hostage crisis poisoned American relations with Iran for decades. It also affected domestic politics. During the 1980 presidential election campaign, conservatives and Republicans criticized Carter for not successfully defending the overseas interests of the United States.

Question 16

How did the Iranian Revolution disrupt oil production in Iran? How did this lead to gas lines and shortages in America? How did this increase discontent with President Carter? What did Carter do to oil imports after Iranians took Americans hostage in 1979? In September 1980, war broke out between Iran and which other nation? How did this war affect the world’s oil supply? How did this further disdain towards President Carter? (Energy Crisis)

Answer 16

The Iranian Revolution seriously disrupted oil production in Iran, which had been a major source of oil on the world market. Oil prices shot up, and Americans began to line up in cars at gas stations to buy gasoline, fearing that shortages would develop. Panic buying did lead to shortages in some places. Many Americans blamed President Carter’s foreign policy for the gas lines and shortages. After Iranians took Americans hostage in late 1979, Carter blocked any further oil imports from Iran. Then, in September 1980, war broke out between Iran and its neighbor, Iraq. Both countries had been major oil producers. The war further reduced world oil supplies and kept gas prices high. The energy crisis undermined Americans’ confidence and led many Americans to oppose Carter’s reelection in 1980.

Question 17

True or False: Conservatives generally believe that the government should refrain from interfering too much in the economy or from spending too much money on services for its citizens. Liberals generally believe that the government should be more active in regulating the economy and in providing various social services.

Answer 17

True

Question 18

Remember: Ronald Reagan swept into office on a conservative tide. More Americans had come to agree with him that high taxes and “big government” were causing many national problems. “Government,” he said, “is not the solution to our problems, government is the problem.” These ideas contrasted sharply with the dominant ideas of the 1960s and 1970s.

Answer 18

Ronald Reagan swept into office on a conservative tide. More Americans had come to agree with him that high taxes and “big government” were causing many national problems. “Government,” he said, “is not the solution to our problems, government is the problem.” These ideas contrasted sharply with the dominant ideas of the 1960s and 1970s.

Question 19

Since the 1930s, what had the federal government been doing? Which president started this trend? Which presidents followed after him? What did these liberal presidents believe? Beginning in the 1960s, who led the conservative movement? By the 1980s, who dominated the Republican Party? Who led them? What did they believe?

Answer 19

Since the 1930s, the federal government had grown steadily. President Franklin D. Roosevelt had begun this trend to help people through the Great Depression. Harry Truman, John Kennedy, and Lyndon Johnson continued the expansion. These liberal presidents believed that government should play a large role in managing the economy and providing social programs. Beginning in the 1960s, a conservative movement warned against growing federal power. Arizona senator Barry Goldwater led the way. He argued for a smaller government nearer the people. By the 1980s, conservatives dominated the Republican party. Led by Ronald Reagan, they believed that federal social programs had become too costly and that federal regulations kept businesses from growing. State and local governments, they argued, were closest to the people and should decide what regulations were needed.

Question 20

What were the 6 goals of the Conservative Movement?

Answer 20

1. Cut Spending on Social Programs
2. Return to traditional values
3. Reduce regulations on business
4. Lower taxes
5. Reduce size of the federal government
6. Balance federal budget

Question 21

How did conservatives call to a return to traditional values? Which churches grew rapidly during the 1970s and 1980s? What did Evangelicals preach, and how did Evangelical ministers widen their audience?

Answer 21

After decades of social change, many conservatives called for a return to traditional values. These included religion, family, and patriotism. Reflecting the renewed emphasis on traditional values, evangelical Christian churches grew rapidly during the 1970s and 1980s. Evangelicals stressed personal conversion and sought to convert others. Evangelical ministers used television to widen their audience.

Question 22

How did evangelicals play an active role in conservative politics? In 1979, which group did Reverend Jerry Falwell established? What was the Moral Majority and what did they support? In 1980, how did the Moral Majority and other organizations help Ronald Reagan win the presidency?

Answer 22

Many evangelicals took an active role in conservative political causes. In 1979, the Reverend Jerry Falwell founded the Moral Majority. The group aided political candidates who favored conservative religious goals, such as a constitutional amendment to allow organized prayer in public schools. In 1980, strong support from the Moral Majority and the other conservative religious organizations helped put Ronald Reagan in the White House.

Question 23

What was Ronald Reagan’s personality? What was his occupation before he became the governor of California? What earned him the nickname the Great Communicator?

Answer 23

Reagan was a handsome man with a relaxed, friendly air. He had been a movie star before winning election as governor of California. His skill at presenting ideas in terms that ordinary people could understand earned him the nickname the Great Communicator.

Question 24

What was President Ronald Reagan’s first priority as president? What was Reaganomics? Why did he want Congress to cut taxes, serving as the first goal of his Reaganomics program?

Answer 24

The new President’s first priority was his economic program, often called Reaganomics. He persuaded Congress to cut taxes. Reagan hoped that taxpayers would use the extra money to buy more and save more. Buying more would spur business growth. Saving more would allow banks to invest in new business ventures.

Question 25

How did President Ronald Reagan work to reduce the size of the government, serving as a second goal of his Reaganomics program? What did critics say? What did supporters say in response?

Answer 25

Reagan also promised to cut federal spending to reduce the size of government. The President persuaded Congress to slow down spending increases on social programs, such as welfare, and aid to education. Critics charged that those cuts hurt the poor and children. Supporters responded that Reagan was just trimming programs that did not work.

Question 26

Serving as a third goal of Ronald Reagan’s Reaganomics program, what was deregulation? What is an example of this?

Answer 26

A third goal of Reaganomics was deregulation, or reduction of restrictions on businesses. Reagan sped up an earlier trend toward deregulation. He opposed all laws, for example, that required industries to install expensive antipollution devices.

Question 27

How was the economy by 1984 under Reagan’s policies? When Reagan left office, how many more jobs were available? How was inflation?

Answer 27

After a slow start, the economy was booming by 1984. When Reagan left office, there were 16 million more jobs, while inflation had been held in check.

Question 28

After completing his economic program, what was Ronald Reagan’s other goal of a balanced budget? Although cutting social spending, what did Ronald Reagan increase? In 1986, what was the budget deficit? What was it significant? How did Reagan remain popular?

Answer 28

Another of Reagan’s goals—a balanced budget—proved harder to achieve. A balanced budget requires the government to spend only as much as it takes in. While Reagan cut social spending, he sharply increased military spending. As military spending rose and taxes fell, the budget deficit soared. For 1986, the deficit jumped to $240 billion, more than twice as high as under any previous President. Still, the economy continued to expand, and Reagan remained popular. For many Americans, he had succeeded in restoring faith in the presidency, which had been so badly tarnished in recent years.

Question 29

What did President George H. W. Bush vow to do during his campaign? What led him to not keeping this promise? What deadlock was he in with Congress in 1990? What caused many conservatives to feel betrayed?

Answer 29

Reagan’s Vice President, George H. W. Bush, won a big victory in 1988. Bush vowed to continue Reagan’s economic policies, cutting the deficit without raising taxes. “Read my lips,” he pledged during the campaign. “No new taxes.” Bush could not keep his promise. By 1990, he and Congress were deadlocked over which government programs to cut to reduce the deficit. Finally, Bush agreed to raise taxes to save some popular programs. Many conservatives felt betrayed.

Question 30

As taxes continued to rise under the George H. W. Bush administration, what happened to the economy? What caused a banking crisis to develop? What did this do to the economy? Why were businesses downsizing? What were the results? How did these factors lead to a recession? How long did the recession last?

Answer 30

As taxes rose, the economy grew weaker. To make matters worse, a banking crisis developed. Deregulation had led some banks to make risky loans. When those loans were not repaid, many banks failed. With banks unable or unwilling to make loans, the economy slowed. Many businesses cut costs by downsizing, or reducing their workforces. Downsizing increased business profits but also increased joblessness. These conditions soon produced a recession. A recession is an economic slump that is milder than a depression. The recession continued for more than a year.

Question 31

How many justices did Reagan and Bush appoint to the Supreme Court? What was significant about the appointment of Sandra Day O’Connor? What were the ideologies of these justices?

Answer 31

Reagan and Bush appointed a total of five Justices to the Supreme Court. (One of Reagan’s choices, Sandra Day O’Connor, was the first woman to serve on the Court.) The new Justices were more conservative than those they replaced. The more conservative Court placed new limits on the rights of suspected criminals, as well as on the right of prisoners to appeal convictions. The Court made it harder for workers to win job discrimination cases. It also reduced busing, which some school districts had used since the 1960s to achieve racial integration in public schools.

Question 32

How did Bill Clinton win the Election of 1992?

Answer 32

Bush faced a stiff reelection challenge in 1992. Recession and unemployment continued. Bickering between Congress and the President left voters unhappy with Washington politics. The Democratic nominee, Arkansas governor Bill Clinton, promised more government involvement in areas ignored by Reagan and Bush. On Election Day, voters signaled their dissatisfaction. Only 38 percent voted for Bush. Although he received less than half the popular vote—43 percent—Clinton won the highest number of votes. The remaining 19 percent went to Ross Perot, a Texas billionaire who ran as an independent candidate.

Question 33

What did President Clinton follow? What happened to the federal deficit under President Clinton? In 1994, how many citizens had no health insurance? Why did Clinton’s national system of health insurance get defeated in Congress?

Answer 33

President Clinton followed a middle-of-the-road course. On the one hand, he moved cautiously when he persuaded Congress to increase some taxes and reduce spending. Yet this caution brought success. Under Clinton, for the first time in over 40 years, the federal deficit began a steady decline. On the other hand, Clinton pushed for bold reform of the healthcare system. In 1994, some 37 million Americans had no health insurance. Clinton called for a national system of health insurance for almost all Americans. After heated debate, however, Congress defeated the plan. Many Americans worried that it would be too costly and involve the government too deeply in their lives.

Question 34

To many Americans, what did President Clinton and Congress’s argument over healthcare convey?

Answer 34

To many Americans, the struggle over healthcare showed that Washington was paralyzed. Democrats controlled both Congress and the White House, yet the President could not get his own plan enacted.

Question 35

How did Clinton and Conservatives differ on their view on taxes?

Answer 35

Clinton: Asked Congress to increase taxes

Conservatives: Believed a tax increase would hurt the economy

Question 36

How did Clinton and Conservatives differ on healthcare?

Answer 36

Clinton: Wanted to establish universal healthcare by requiring employers to offer insurance to all employees

Conservatives: Wanted to expand healthcare coverage by requiring individuals to purchase insurance

Question 37

How did Clinton and Conservatives differ on Medicare?

Answer 37

Clinton: Wanted to give early retirees access to Medicare

Conservatives: Believed Medicare was not financially stable enough to expand

Question 38

How did Clinton and Conservatives differ on the government’s role in education?

Answer 38

Clinton: Proposed national testing in elementary and middle schools

Conservatives: Opposed expansion of federal control over education

Question 39

How did Clinton and Conservatives differ on homosexuals in the military?

Answer 39

Clinton: Opposed exclusion of homosexuals from the military

Conservatives: Supported exclusion of homosexuals from the military

Question 40

During the term of President George H. W. Bush, what was the state of NAFTA (North American Free Trade Agreement)? When did he sign the agreement? Could he convince Congress to ratify it?

Answer 40

During the term of President Bush, the United States had negotiated with Mexico and Canada to conclude the North American Free Trade Agreement (NAFTA). Bush signed the agreement in October 1992, but he was unable to persuade Congress to ratify the agreement before he left the White House in January 1993.

Question 41

What was the opposition against NAFTA? What was its support?

Answer 41

In the United States, opponents argued that, by allowing free trade with Mexico, where pay was much lower and there were fewer laws protecting the environment, the agreement would result in American jobs leaving the country. Among those opposing NAFTA were much of the labor movement. Many U.S. business leaders, however, supported NAFTA, arguing that it would open up markets for U.S. products.

Question 42

When Bush signed NAFTA in October 1992, what was he doing? Under what provisions did Clinton say he would support NAFTA? How did Clinton persuade Congress to support the agreement after the provisions were met?

Answer 42

When Bush signed NAFTA in October 1992, he was in the midst of a presidential campaign against Bill Clinton. Clinton agreed to support NAFTA if provisions were added to the agreement protecting the environment and labor rights. Even after Canada and Mexico agreed to those changes, however, opponents of the agreement put up a fight. They believed the changes did not go far enough. In the end, though, Clinton convinced Congress to support the agreement.

Question 43

After NAFTA took effect on January 1, 1994, what was its influence?

Answer 43

NAFTA took effect on January 1, 1994. It opened the markets of all three North American countries to the free movement of trade and investment across borders. After the agreement took effect, trade among the three countries increased dramatically.

Question 44

After Clinton took office in 1993, how did the economy recover strongly from recession? What was significant about the economic boom under Clinton’s 8-year presidency? How did this help Clinton win re-election in 1996? How do historians disagree on the cause of the boom?

Answer 44

After Clinton took office in 1993, the U.S. economy recovered strongly from recession. The economy continued to grow throughout Clinton’s eight years in office, the longest uninterrupted period of economic growth in U.S. history. The economy’s strong performance helped Clinton win reelection by a large margin in 1996. Historians disagree on the reasons for the boom. Some believe that Clinton’s effort to trim the federal budget deficit strengthened the economy. Others point to sharply lower energy prices. Still others believe that economic growth was largely the result of using computers to make American workers more productive.

Question 45

What frustration led to Republicans winning a resounding victory in the 1994 congressional elections? Under Speaker of the House Newt Gingrich, what was the “Contract with America”? Why did President Clinton oppose this plan? What caused the federal budget surplus in 1998? How did Congress and President Clinton compromise on many issues?

Answer 45

Despite the improving economy, voter frustration with Clinton’s healthcare plans helped Republicans win a resounding victory in the 1994 congressional elections. For the first time since the 1950s, Republicans held a majority in both the Senate and the House of Representatives. Newt Gingrich of Georgia became Speaker of the House. Under his leadership, House Republicans drew up a “Contract With America”. This set of proposed laws included reducing social spending and environmental regulations and slashing taxes. The President attacked many of the proposals as unfair to poor and middle-class Americans. After a bitter fight, he compromised with Congress on a plan to balance the federal budget by the year 2002. In fact, the economy grew so strongly that in 1998 the government reported a budget surplus, in which income exceeded spending. Over the next two years, the surplus grew even larger. Congress and Clinton also compromised on welfare reform. The government limited the length of time a person could receive welfare benefits. In this way, it hoped to encourage unemployed Americans to find jobs.

Question 46

What were the controversies surrounding President Clinton’s second term? What was his impeachment and acquittal?

Answer 46

Controversy engulfed Clinton’s second term. Federal prosecutors investigated Clinton for real estate dealings while he was governor of Arkansas. Prosecutors found no evidence of lawbreaking. However, they did accuse the President of lying under oath about an improper relationship with a White House intern. Amid heated debate, the House voted to impeach the President. For only the second time in history, the Senate tried a President. In February 1999, the Senate voted to acquit the President, and he continued in office until the end of his second term in 2001.