Reagan and Bush (81-92)

Question 1

Who was Ronald Reagan?

Answer 1

• President 81-89
• Republican
• Movie actor previously
• Anti-communist
• Resented high tax
• Wanted to increase defence spending

Question 2

What was reaganomics?

Answer 2

• Cuts in tax and welfare payments (welfare queens collecting cheques and driving in Cadillacs)
• Supply-side economics, low tax and less government regulation

Question 3

How did Reagan impact family incomes?

Answer 3

• Reduced budget of 200 federal programmes that were to aid the poor
• Average family income plummeted
• Cuts individual and corporate taxes benefited the rich

Question 4

How did Reagan tackle employment rights?

Answer 4

• Hostile to unions, fired 12k air-traffic control strikers (81)
• 80s, harder for women, minorities, elderly or disabled to sue employers of discrimination
• Obstructed congressional attempts to increase minimum wage

Question 5

How did Congress oppose Reagan?

Answer 5

• Was informed that the fund that social security payments came would be bankrupt by 2000, so he suggested immediate cuts in benefits for early retirees - backed down after congressional outrage
• Congress heavily opposed and countered Reagan’s attempts to reduce the size of the federal government
• Reagan was against ‘Clean Water Act’, so they introduced Water Quality Control Act (87)

Question 6

Did Reagan achieve economic success?

Answer 6

• US experienced its longest-ever period of economic growth
• 16mil jobs were created
• Tax cuts and defence expenditure led to a budget deficit that caused greater problems for future Americans

Question 7

How was Reagan responsible for the growth of trade deficit?

Answer 7

• US went from being one of world’s largest creditor nations to the world’s largest debtor nation
• US began 80s with positive trade balance in manufactured goods, developed into a negative trade balance
• Cheap goods sold were often made in low-wage foreign factories, contributing to the loss of manufacturing jobs in the US

Question 8

What did Reagan do to try and fix the trade deficit?

Answer 8

• Persuaded Japanese manufacturers to limit their exports to the US
• Japanese responded by opening manufacturing plants within the US, giving employment to many Americans

Question 9

Who was George Bush Sr.?

Answer 9

• President 89-93
• Republican
• Pledged to decrease spending and the deficit brought about by previous presidents

Question 10

What issues did Bush face?

Answer 10

• $2.7 trillion deficit
• Recession in 1990, hit families and workers hard
• Failed to promote a conservative social agenda, which angered conservative Republicans who dominated the 92 election, lowering chances of re-election
• Raised taxes, but failed to rein in government spending and to balance budget