Reagan and Bush (81-92) Flashcards
1
Q
Who was Ronald Reagan?
A
- President 81-89
- Republican
- Movie actor previously
- Anti-communist
- Resented high tax
- Wanted to increase defence spending
2
Q
What was reaganomics?
A
- Cuts in tax and welfare payments (welfare queens collecting cheques and driving in Cadillacs)
- Supply-side economics, low tax and less government regulation
3
Q
How did Reagan impact family incomes?
A
- Reduced budget of 200 federal programmes that were to aid the poor
- Average family income plummeted
- Cuts individual and corporate taxes benefited the rich
4
Q
How did Reagan tackle employment rights?
A
- 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
5
Q
How did Congress oppose Reagan?
A
- 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)
6
Q
Did Reagan achieve economic success?
A
- 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
7
Q
How was Reagan responsible for the growth of trade deficit?
A
- 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
8
Q
What did Reagan do to try and fix the trade deficit?
A
- Persuaded Japanese manufacturers to limit their exports to the US
- Japanese responded by opening manufacturing plants within the US, giving employment to many Americans
9
Q
Who was George Bush Sr.?
A
- President 89-93
- Republican
- Pledged to decrease spending and the deficit brought about by previous presidents
10
Q
What issues did Bush face?
A
- $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
