Ronald Reagan Flashcards
1
Q
What is stagflation?
A
Rising inflation and rising unemployment at the same time. Business stops expanding and stagnates.
2
Q
What is real GNP?
A
-adjusted gross national product to match inflation
3
Q
What is a data series?
A
Types of statistical information
4
Q
What is per capita income?
A
GDP divided by the number of people in the country
5
Q
What is GNP?
A
The value of all goods and services produced in a country in a year
6
Q
What is marginal income tax?
A
US income tax is organised into brackets/ margins, with the amount of tax rising as you move from one bracket to a higher one. The higher tax is only paid on the income in the higher tax bracket
7
Q
What is real disposable personal income?
A
-amount of money people have left to spend or save after tax. Real disposable income links disposable income to the movement of prices. So if have same disposable income but prices have gone up-worse off
8
Q
What is constant 1987 dollars/ 1987 dollars?
A
-the actual wage is adjusted by the amount of inflation or otherwise to produce a wage that can be directly compared with a 1987 wage
9
Q
What immediate action did Reagan take when he became president?
A
- focused on the economy
- wanted to control government spending, reduce government involvement and to cut taxes
- ‘supply side’ economic theory
- sacked White House Staff Members, Federal government hiring freeze, freeze office furnishings and equipment
- cut travel expenses by 15%
- executive orders and set up new advisory groups
- BUT were small financial savings
10
Q
What is supply side theory?
A
Not driven by consumer demand but by keeping up production, encouraging saving and investment
- restraints on production eg: high taxes should be removed
- better off benefit which would help poorest- ‘trickle down’
11
Q
Why did he decide to cut taxes?
A
-reason thinking high taxes was the reason that productivity fell in the 1970s
12
Q
What was the plan for reform?
A
- wanted to present whole budget policy through 1984 as a single bill when he met congress (not normal process)
- wanted a tax bill
- Council of Economic Advisers didn’t have time to go through usual procedures- successful
13
Q
What are the 4 parts of Reaganomics?
A
- meant to be quick
- cuts came from federal grants for specific projects set up under Johnson’s ‘Great Society’ reforms
1) Cutting the Federal deficit (loss)- cuts on domestic spending, had lots of errors and footnotes of ‘as yet unidentified’ cuts to be decided later
2) Personal and business tax reductions
3) Deregulation(removing federal control) in industry
4) Planned control of the money supply- keep inflation down while expanding the economy
14
Q
How did Reagan get his legislation passed?
A
- small amount of Democrat’s to convince
- Republican majority in senate and House of Representatives
- passed as the Omnibus Reconciliation Act of 1981
- Hard to pass in house- Democrats felt they had been manipulated over the budget and saw tax bill as a fight over control
- reshaped- Economic Recovery Tax Act 1981
- untaxed IRAs (Independent Retirement Accounts) set up for some working taxpayers
- business tax rates cut
- suffered inflation- usually fears in advance
15
Q
When was Reagan’s assassination attempt, what happened?
A
- March 1981
- popularity increased because of attempt
- By John Hinckley Jr
- Cheerful demeanour throughout impressed people
- 69-oldest elected president
16
Q
Name four pieces of economic legislation and economic measures by Reagan:
A
- 1981-President’s commission on Housing= investigate all aspects of housing and how to save money on housing schemes
- 1981- Economic Recovery Tax Act= cuts income tax by 23% over 3 years links tax bands to inflation and offers incentives
- 1981-Omnibus Budget Reconciliation Act= variety of tax cuts- take $35 billion out of federal spending
- 1986 Tax Reform Act= revises tax codes, remove tax evasion loopholes and ease pressure on poorer families
17
Q
How can you define Reagan’s success? Why were the 4 parts of Reaganomics so important?
A
- successful if met aims
- similar to 1920s (ideas) which were successful (Republican majority)
- All things that counteract stagflation which is main issue
- New Deal- not long term solution, led to borrowing culture, no longer necessary or sustainable
18
Q
How do Reagan’s policies compare to Johnson’s Great society?
A
Great Society was ‘anti- poverty’. Reaganomics was concerned with some anti- poverty measures but mainly focused on those at the top
-Reagan- laissez-faire where as Democrats- want more control
19
Q
Why would cutting the personal and business tax reductions help the economy?
A
- more disposable income- more spending, cycle of prosperity
- more money for businesses- workers get paid more- trickle down element
20
Q
Why would cutting federal deficit help the economy?
A
- improves GNP and inflation
- less bankruptcy in government meaning can support more fairly without huge loss itself
- solves main issue of stagflation
21
Q
Why would deregulation help the economy?
A
- improve living standards
- choose working hours
- links back to Henry Ford
- links to idea that businesses know how to make the most money- power with the people
- Problem= trusting rich, some would pass on benefits others wouldn’t
22
Q
Why would money supply help the economy?
A
- keeps inflation down
- can’t print money-need to control money circulation
- too much- not worth anything
23
Q
Where can you go for lesson summary?
A
-Starred text notes= does an overall sentence for each (only 2 pages):
1) What was the economic situation in 1981:
- Was poor, with previous over-governmental spending, low productivity and unemployment
2) What economic policies did Reagan introduce?
- Reagan introduced Reaganomics, passed his budget policy as a single bill in 1984 and passed legislation like the 1981 Economic Recovery Tax Act…
3) How did he get these policies passed?
- Sympathy for his assignation, use of the media, unity by Republics and them being the majority in senate and house of representatives, also offered some tax concessions to Democrats to swing vote
24
Q
What are the 7 main things Reagan wanted his policies of tax cuts and money supply control to achieve?
A
1) Stop inflation
2) Reduce unemployment
3) Increase personal wealth
4) Increase productivity
5) Encourage personal saving and investing
6) Encourage businesses and service providers to produce more
7) Federal spending and the federal deficit to fall
25
What is supply side theory in a nutshell- main objective:
- to reduce federal income from tax cuts which would be covered by rising productivity and investment
26
How can interpretations effect the significance of Reagan’s policies?
-statistic data- different interpretations and viewpoints
-eg: some may be employed but not earning full capacity eg: part time or temporary work. Some statistics a
So missed out those unemployed and classes them as ‘unemployable’ eg: drug use
-therefore data may not include everyone, it’s subjective and may not always provide a clear picture (absence of explanation)
27
Did Reagan improve inflation and unemployment?
- Federal Reserve Board put tighter restrictions on money supply but as these restrictions weren’t lifted as unemployment rose it led to a sharp rise in interest rates- damaged industries like farming which bought supplies on credit or had loans
- came to power in middle of recession
- unemployment rates increased but inflation did fall and by 1966 never reached double figures again
28
Did Reagan’s policies increase personal wealth?
- tax cuts does make people richer but which sections of the population became richer?
- some argued received economy, tax cuts hurt the rich most others argued gap widened- rich got richer, poor got poorer
- millionaires had doubled between the late 1970s
Source viewpoints:
- widened gap between rich and poor
- ‘millionaire’ became meaningless
- ‘increasing economic inequality’
Other:
- beneficial for economy eg: employment rate fell, CPI rose, GDP grew, ‘remarkable’
- tax burden shift= rich paid the most while poor taxes fell-more equal
29
Did the policies increase productivity?
- hard to measure eg: look nationally at GNP of whole country or output per worker per hour (producing more per hour?)
- more people began to save and invest towards the end of recession but the ‘big government’ policy backfired- led to deregulation- more competition...
- financial investments and savings happened in an unstable environment
- led to stock market crash of 1987- lost savings and investments
- recovery- rapid eg:FBR encouraged banks to support each other, told not to panic- not as wide scale as GD
- failure- reduction of deficit, made worse by USA borrowing from abroad
- supply side arguments failed
- some federal departments resisted cuts
- defence budget (believe increased defence spending was necessary), reversed spending pattern- less spending on Human Resources and less defence spending
30
Did George HW Bush continue his policies?
- promised to continue Reagan’s policies but less popular as limitations and long term effects became clear
- forced to break promises as dignified by raising taxes which promised in campaign would never do
- democrats back in control of both houses of Congress
- needed to prove himself- particularly in media and public support was “lukewarm”
31
Did (1992) Bill Clinton continue his policies? What are the 3 main points of Clinton’s campaign?
- Democrat
- people although recognised Reagan’s economic issues did not want to return to high taxation
- became a ‘New Democrat’- campaign economically focused eg: low inflation, high employment, no tariffs, reduced deficit...
- took up ideas from previous democrats and was ‘investing in people’
3 main points of his campaign?
1) Address medical care
2) Would bring change
3) ’the economically stupid’- catch phrase outside and inside campaign offices
32
What were some of his main aims and arguments in Reagan’s inaugural speech?
- overall believes that government involvement has been too much
- believes that people should have more self confidence, remind them that they do have power and influence and some responsibility
- shows people shouldn’t just rely on the government, all have a role
- wants to ‘curb the size and influence of the Federal Establishment’
- also realises the ‘racial divisions’ and those ‘too long neglected’
- ‘government did not create the states; the states created the Federal Government’
- ‘must provide opportunity, not smother it, foster productivity, not stifle it’
33
What were the overall successes of Reagan’s economic policies?
- tight restrictions on money supply which worked short term
- inflation fell
- tax cuts
- rapid recovery of stock market crash- not like GD
- people did save and invest towards end of recession (short-term)
- people liked some of Reagan’s economic policies such as low taxes even though it did have its limitations and long term issues
- paved way for ‘New Democrat’- Bill Clinton
- Inaugural Speech- did meet some of aims (successful to an extent) eg: stopping inflation
34
What were some of the overall failures of Reagan’s policies:
- different interpretations- statistical data, not always accurate eg: some groups may be left out
- tight restrictions on money supply led to unemployment- industries like farming were badly hit
- which sections of population became richer in tax cuts eg: equal? widened gap?
- hard to measure productivity- again depends on interpretation and form
- ‘big government’ policy led to deregulation meaning more competition
- stock market crash of 1987
- supply side failed as well as reductions in deficit- borrowed from abroad and increased defence spending
- economic policies were not continued eg: by George HW Bush
- not much investment in those that really needed it eg: Bill Clinton returned back to ‘investing in people’
- not all aims in inaugural speech met eg: deregulation, most notable failure of reduction deficit (non-existent)
35
Overall summaries, conclusions and printed out table of summary successes and failures in notes
Blue folder (may have changed)
36
What is Gross Private Domestic Investment?- GPDI
- measure of the amount of money that domestic businesses invest within their own country
- politicians and economists use it to gage a country’s overall economic activity
- it includes gross investment figure (production of all goods), private investment (not public investment) and domestic (not foreign) expenditures.
- it provides an indicator of future productive capacity of the economy
37
What is Consumer Price Index? (CPI):
- if there is a change in CPI this means there has been an increase in the average change in prices over time
- an increase in CPI means the household has spent more money fo maintain the same standard of living= bad for household but good for business and government
38
How could you argue that the Reagan economic heyday was only for the rich?
Was only for rich:
- tax cuts did make people richer
- millionaires doubles between 1970s and 80s
- Unemployment did fall
- In 1982 output per worker per hour was -1.0 by 1983 it was 4.5
Wasn’t just for rich:
- not consistent
- interpretations
- wages stagnate 1986
- stockmarket crash in 1987
- widened gap between rich and poor= certain sections
- deregulation + competition
- 1982- decrease in production
39
Why do extracts have different interpretations?
-What is their focus (economic; social; political etc.)?
-What is the scale of their focus? (whole country; certain states etc.)
-Can the data be interpreted in different ways?
-Do they have different criteria?
40
Lesson- What was the nature and extent of social change?
-google docs, sent out link, additional notes and summaries yet to be done- complete!!
41
Lesson:
To what extent were the presidency and US policy is revitalised?
-the presidency:
- Reagan was charismatic
- Had media and public support
- early years- seen as a new era, willing (public) to trust
- But need to be considered long term-beyond Reagan
- after previous presidents eg:
- Nixon=watergate
- Ford=pardon of Nixon
- Carter= awkward management
- felt disillusioned with presidency, felt like vote didn’t matter
- Reagan brought change- retained view he promoted- presidential image and foreign affair successes
- less noticeable that actually did less than more conservative supporters hoped
- high approval rating-68 compared to Carter’s 28 before the election and Clinton’s 55
42
What kind of presidential involvement was there in legislation?
-some of religious right legislation was blocked eg: laws to cut back on busing children from poor areas to integrated schools
-not just because of opposition in Congress, also advised against some legislation
=pragmatic and prepared to listen (co-operated with government wasn’t just about presidents ideas (like before- ignored a lot))
=Eg: religious right and daily prayer in schools- advised against
43
Did Bush follow this? (1989-1993)
- not pragmatic or flexible, poor communicator and lacked charm or present clear vision of policies
- less support in Congress- 45 Republicans in Senate (Reagan had 54 in 1st term), 175 Republicans in House of Representatives (a Reagan 189)
- less adept at managing congress
- had to give into demands of congress, only continued Reagan’s most popular policies eg: low taxes
44
Did Clinton follow this? (1993-2001):
- struggles to pass legislation
- big healthcare legislation package failed
- increased presidential involvement in legislation didn’t last long
45
Was Reagan’s image tarnished by the Iran-contra Affair? What happened?
-before fulfilled ‘President’ expectation- American Dream, family values, confidence in the future
-1986 Iran Contra-Affair was uncovered- supplier aims to Iran in order to free several US hostages
-White House misusing money eg: raised from private sources and also supplied rebels with weapons
-no agreement of congress and against neutrality in the Iran-Iraq War
-President lied to congress and the public- not been done, then, not known about
-officials had destroyed evidence
-either way Reagan looked bad eg:
=done and lied
=not known-no control of officials
-involvement was revealed- tainted presidency
-due to early public support not as bad (unlike Nixon) eg: some argued doing to save hostages or that he was confused
-hearings went in for over a year
-Tower commission investigation (set up by Reagan)
-constant press coverage
46
How did Reagan affect US politics?
- Not long Republican control
- control of congress kept changing- lots of political competition EG:
- 1988-Democrats had majority in House and Senate, changed
- 1996- Republicans controlled both
47
What was the ‘New Right’ thinking?
- rejected assumptions in place since New Deal
- united lots of people and politically opposite opponents- Republican and Democrats under a conservative coalition banner- helped to push through legislation
- coalition- against political climate of 1970s
- Believed in this time there was a lack of ‘law and order’- ‘lazy’, ‘welfare dependent’ poor
- split between ideas such as gay rights, women’s liberation, abortion laws
- some felt welfare system was being exploited but the poor also needed help
- congress blocked some of Reagan’s policies on ‘social’ issues and ‘big government’ eg: moving funding did road building from federal to state control
48
Where politicians revitalised?
-some argued Reagan’s Administration didn’t change politics enough
-most of the time was a reaction (temporary) to a Democrat mistakes not internalisation of Republican thinking
-therefore, didn’t feel need to change thinking- thought accepted
-more actually in 1980s and 90s cared about liberal thinking then Republican thought-wanted a fair, even if not equal society
=closer to American Dream then Republicans would have liked
-Democrats not strong-some more lenient then would have liked to Republicanism eg: passing 1981 legislation
-divides in Democrats
-Jesse Jackson not popular, lost in 1984,1988 and against Democrat candidate George HW Bush
-Had to form the DLC (Democratic Leadership Council) to revitalise party
-old Democrats ideas of Kennedy and Johnson tarnished, ‘New Democrat’ ideology born-1990 Bill Clinton
-Ideology accepted need for low taxes and low federal interventions closer to conservative thinking
-did stress social welfare but new approach= (before seen as ‘supporting the lazy’)- abolished welfare and provided support instead
-offered (Clinton) ‘New Covenant’- bring change, replace policies not working
-therefore due to Republican reforms, the Democrats also had to reform
-Key LIMITATION of Reagan= Clinton offering a lot of the same promises Reagan had in 1984- not that successful?
49
What other changes were made to the political environment?
- Reagan brought business back into government- businesses made mark on USA much more strongly, had knock on effects when supported particular political candidates
- more of a political edge not there previously eg: air-time on television, advertising = not to do with political ideas or skills
- could have a huge influence in campaigns through contributions
50
What is the Christian Right?
- more involved eg: issues like abortion, teenage pregnancy...= gave Reagan support and votes
- advised still to express it as own personal opinion and advised against any actual legislation
- successful due to willingness to adapt
- so although beloved in things such as abortion wasn’t going to force through legislation which would make him unpopular and he rejected by congress
51
Why were the 1984 LA Olympics significant to US politics?
- no longer wanted to fund through taxpayer’s money, instead used existing venues
- made money (first time) through introducing sponsorship, Coca Cola, Samsung and McDonald’s all became “official” sponsors
- Los Angeles Olympic Organising Committee made an unprecedented profit of $215 million
52
How did public interest and involvement change in Reagan’s presidency?
- first televised presidential debate in 1960 drew 70 million viewers
- viewing of presidential debates dropped
- in 1970s viewing figures was around 60 million
- But in the Reagan- Carter debates through this-80.6 million viewers (highest ever been)
- carries on through 1980s and 90s to be high until 1996 when it dropped to 36.3 million (compared to the normal 70 million)-lowest in debate history
- popular President- changed view of public, media and political parties
- not as successful on sweeping changes he hoped in legislation
- made previously look like a proper political role again-changing policies and guiding the nation
- made people believe in the government- just needed right people to make it work
- the voter turnout as percentage of population eligible to vote- 1986-36% (1982-40%)
53
So what is revitalisation?
Revitalisation: Imbuing
something with new
life
-mine: ‘new and improved’, this means that it doesn’t necessarily have to be a new idea but it is brought back to life in an improved way
54
To what extent did Reagan change the presidency?-did
• Increased popularity under
Reagan
• Succeeded in getting his
economic legislation passed
* Listened to advisors
* Survived scandal
55
To what extent did Reagan change the presidency?-did not
• Clinton and Bush were less
popular than Reagan
• Congress blocked much of
Reagan’s legislation, as well as
Bush and Clinton’s
• Scandal (Iran-Contra Affair)
56
To what extent did Reagan change politics?-did
* New Right
* New Democrat
• Brought business back into the
government
• Rise of Christian Right
• Rise in viewing of Reagan-
Carter debate
57
To what extent did Reagan change politics?-did not
• Reaction to Democrats not down
to Reagan
• Not everyone supported welfare
policies
• Control of Congress oscillated
• Congress blocked much
deregulation and social welfare
legislation
• Debate viewing figures not
sustained
58
Why might historians have different interpretations regarding the
‘revitalisation’ of politics and the presidency under Reagan?
Was it sustained?
Was it positive or negative?
Are they focusing on politics or
the presidency?
What were the causes of the
change?
Extent of change
59
How did presidency change under Reagan? (Condensed notes):
- brought confidence back into presidency eg: vote did matter, popular president- changed a lot attitudes, made presidency look like a proper political role again (esp compared to previous presidents)
- ‘New Right’ thinking and Christian Right- more support, good at adapting situation
- exploited weaknesses of previous president’s and consequences of policies eg: welfare
- (limitation-not 100%= Iran-Contra Affair- involvement revealed)-1986
- main= confidence, public interest and involvement
- high approval rating-68 (Carter-28, Clinton-55)
- Reagan-Carter debates- 80.6 million viewers
60
How did politics change under Reagan?
- Main:
- ‘New Right’ thinking
- revitalised politicians even political opponent- Democrats (eg:Democratic Leadership Council)
- business into government
- religion and ‘image’-Christian right- less to do with political ideas or skills
- example= 1984 LA Olympics, demonstrates change thinking
- realisation of issues and change from long established tradition created by Roosevelt’s New Deal policies- presidents just followed
- change in use of money and federal spending
61
Where can you read a summary of Reagan’s presidency?
-In condensed notes has conclusion and extra class notes
62
What is a quote by Reagan on big government?
-“Government’s first duty is to protect the people; not run their lives”
63
Did George HW Bush carry on Reagan’s big government policies?
- forced to break campaign promises eg: raised taxes
- long term + limitations of Reagan’s policies became clear
- hard with “lukewarm” support and democrats back in control of both Houses of Congress
64
Did Bill Clinton in 1922 carry on Reagan’s policies?
- most recognised issues of Reagan’s policies but wanted low taxes
- ‘New Democrat’
- economy- focused campaign- try and do things a Reagan couldn’t eg: reduce deficit
- did “nod” to old democrats in increasing welfare and medical care- ‘investing in people’
- 3 main points on campaign:
1) Address medical care
2) Would bring change
3) ’the economy stupid’- catchphrase
65
What is big government?
Government that is viewed as excessively interventionist and intruding usually the federal government
66
To what extent was ‘big government’ reduced?
- In Reagan’s inaugural speech:
- ‘government is the problem’
- All must to responsible
- should be no divides in people eg: ethical or racial divisions
- states do have power
- power of federal government needs to decrease
- government should support not ‘smother’
67
Was ‘big government’ reduction clearly beneficial?
- ‘New Federalism’
- less interference in state and local affairs, business, finance= lives of the people
- positive= suspicious of government intervention
- negative= less funding for state, local government projects, less regulation of business expansionism, less control over foreign imports, less social welfare for most needy
68
How was big government reduced in the short term?
- saw deregulation as key to reducing big government eg: government had...
- cut federal regulations almost in half (removing 23,000 pages from federal register)
- helped bring down the cost of petrol and heating fuel by deregulation
- saved $2 billion in 6 months by creating a federal strike to force combat government fraud and waste
- replaced federal agencies with private sector ones and federal employees with volunteers:
- failed to control deficit- rising debt
- small scale savings were more realistic eg: media used everyday images when he discussed change, they also talked about deregulation as if it was something he instigated
- Carter (before) was the one who had started deregulation eg: airlines, drafted bills on deregulating trucking
- Carter had also introduced more across the board regulations eg: working conditions and environmental issues
69
Give 6 examples of significant Reagan deregulation legislation?
1) 1981- executive order to stop wage and price regulation
2) 1982-Bus regulatory Reform Act deregulates bus services
3) 1983- deregulation of natural gas supplies
4) 1984- Shipping Act loosens regulations on US and foreign shipping
5) 1986-Surface Freight Forwarder Deregulation Act= truck companies
6) 1988- Foreign trade and Competitiveness Act- allows President more rights in making trade treaties to benefit the USA
70
What is a conglomerate?
-an organisation that controls several businesses of different types eg: Genetic Electrical was set up in 1892 selling electric light appliances and parts. In 1980s expanded into medical equipment water, oil, and gas industries by buying up businesses in those fields
71
What are the problems of removing controls?
- problems with deregulation
- big companies bought out smaller companies
- independent businesses struggled
- rise in conglomerates
- set standards of safety (physical and financial) lower than government regulators
- competition
- big businesses would ‘fix’ price structure so did not have to compete
- businesses eg: airlines cut services/ areas covered= maximise profit
- rural areas suffered
72
What was the savings and loans collapse?
- applied banking deregulation to the savings and loan institutions (S&Ls) established in 1983
- Banking restrictions were lifted- offer high interest on savings= offer high interest on savings- good for savers bad for people such as farmers who could not switch to lower-interest loans
- banks and S&Ls competed for custom
- savers benefitted the most
- S&Ls not used to making increasingly risky investments like banks had- had to lend at low rates and offer high rights of savings therefore many failed through incompetence
- Competitiveness Equality in Banking in 1987- provided money to cover money lost by S&Ls
- 1988 S&Ls had lost $10billion
- 1989- property market collapsed- harder
- Bush- financial institutions reform, recovery and enforcement Act- bailed out failing organisations, closed them and set up new federal regulators (but did cost $150 billion)
73
What are savings and loans?
-financial institutions that lent money (mostly) for mortgages (traditionally under conservative)
74
What were the effects of the policies on trade ?
- could stop ‘big government’ by not intervening to affect markets and stockmarkets
- buying power of dollar weakened- world trade shifted
- imports of foreign goods rose
- textile industry badly affected-over 30,000 workers lost jobs, 1980-85 250 textile plants closed
- cheaper foreign products more popular
- global borrower
- American companies being bought up by foreign companies
- some argued good= consumers more choice (foreign imports)
- more attractive to trade and invest in-foreign imports
- said Japanese investment was bringing money into the country (ignored that Japanese’s re-invested profits made in the USA, in Japan)
74
Japan:
- 1970s- car salesmen- cheaper and smaller- less expensive than a US manufactured car
- 1980s= buying up US firms entirely, running a company jointly with American owners, investing in US firms- dependent on Japanese stockholder
- chose areas where federal government and US businesses were not investing
- not much job creation
- 1987- 3 million Americans working for Japanese companies
- not in newly created jobs but not unemployed which may of happened without investment
75
Why did some see working with foreign investment as positive?
-saw US being a lender of money as ‘reckless’ and thought new attitude to work with other countries marks a positive and progressive- tough time America was the one in authority/ power, not dependent on foreign countries- chose to work together
76
Why was it viewed by some as negative?
- America was a lender then by the time Reagan left administration was a borrower
- owed $140 billion BY foreign institutions, then when left owed $400 billion TO foreigners
- recession meant that imports fell
- true that exports did increase
- trade deficit was shrinking but in a negative way then positive- loss of 15% of all manufacture jobs in the US
77
Why didn’t big government reduce that much?
- deregulated oil prices, blocked plans to remove environmental issues like pollution and working conditions at nuclear power stations
- State and local governments unwilling to take over projects under federal control- didn’t want to pay for something that would usually be federally funded
78
But what did Reagan do?
Could be argued to be more congress then Reagan (forced) as passed Food Security Act 1985 to hell farmers
-also didn’t introduce loads of new regulations like Carter did
79
What did Bush do? Did he keep deregulation?
- less keen on deregulation and federal withdrawal from state and local affairs
- people knew negative effects of lifting regulation
- deregulated businesses- self interest eg: airplanes, in pre-deregulation only half full, lower prices
- by 1989 competition, high prices, went to fewer places, left often and tightly packed
- collapse of programmes when lack of federal funding
- poor rural areas suffered the most= back of queue for services, transport, maintenance like road repair...
80
Summary paragraph in notes!!
Reflection pages:
-why did Reagan want to reduce big government?
-what were the negatives of this?
- believe government was issue- limited people and made people too reliant (inaugural speech)
- new federalism
- negatives:
- less funding for government projects
- less regulation of business expansionism
- less social welfare
- less control over foreign imports
81
How did he try to reduce big government?
In short term it reduced:
- (deregulation as key, expanded from Carter)
- not that realistic- rising debt not controlled, small scale savings only
- eg: helped bring down cost of petrol and heating fuel by deregulation
- passed lots of deregulation legislation eg: 198@ executive order to stop wage and price regulation
- media support- suggestion that Reagan instigated it
82
What were the impacts of big government?
- Problems removing controls eg: conglomerates
- savings and loans collapse
- effects of policies on trade (Japan)
83
SOCIAL CHANGE SUMMARY- BOOOOOOKKKK
-easier to learn from pages- make flash if want 🙂- check lessons in GN for summaries as well + extra stuff in folder eg: statistics and key dates!
