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Reagan > The Extent To Which 'Big Government' Was Reduced, 1981-1996 > Flashcards

The Extent To Which 'Big Government' Was Reduced, 1981-1996 Flashcards

1
Q

New Federalism

A

The policy of turning over the control of some federal programs to state and local governments

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2
Q

How did Reagan see reducing ‘big government’ as benefitting the USA?

A

New Federalism would produce less federal interference in state and local affairs, business, finance and all aspects of people’s lives

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3
Q

How was reducing ‘big government’ seen as something negative? (5)

A
  • Less funding for state and local government projects
  • Less regulation of business expansionism
  • Greedy
  • Less control over foreign imports
  • Less social welfare for the most needy
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4
Q

How many pages were removed from the Federal Register?

A

23,000 pages

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5
Q

How many pages did the Federal Register have in 1960 and when Reagan came into power?

A

1960 - 14,500
1981 - 87,000

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6
Q

What did Reagan state the administration had achieved against ‘big government’? (4)

A
  • Cut federal regulations almost in half
  • Helped to bring down the cost of petrol and heating fuel by deregulation
  • Created a federal strike force to combat government fraud and waste
  • Replaced federal agencies with private sector ones and federal employees with volunteers
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7
Q

How much money did Reagan save by creating a federal strike force to combat government fraud?

A

$2 billion in six months

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8
Q

Big vs small companies during deregulation:

A

Whilst big companies expanded, smaller independent companies struggled.

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9
Q

What happened to the smaller companies that struggled during the 1980s?

A

Big companies bought them out leading to a rise in the number of conglomerates

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10
Q

Conglomerates:

A

An organisation that controls several businesses of different types

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11
Q

Big businesses during deregulation: (4)

A
  • Bought out smaller companies
  • Businesses set their own standards of safety (physical and financial)
  • ‘Fixed’ a price structure, so that they did not have to compete
  • Cut services provided to maximise profits
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12
Q

What occurred when banking restrictions were lifted?

A

Banks could offer high interest rates on savings

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13
Q

How were high interest rates good and bad for people?

A
  • Good for savers
  • Bad for struggling businesses and people with long-term loans
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14
Q

What did banks and S&Ls compete for?

A

Custom

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15
Q

How was banks and S&Ls competing beneficial for some?

A

Those who had savings, and who were able to understand the various offers benefited the most.

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16
Q

Before deregulation, how did S&Ls run? (2)

A
  • Run by people used to making safe investments
  • Mostly provided mortgage loans at a regulated rate of interest
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17
Q

How did S&Ls operate after they started to compete with banks? (4)

A
  • Made increasingly risky investments
  • Lend at very low rates
  • Offered high rates of savings to savers
  • Many failed through incompetence
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18
Q

What did the government pass as a result of the failure of S&Ls?

A

Competitive Equality Banking Act

19
Q

When was the Competitive Equality Banking Act passed?

A

1987

20
Q

What did the Competitive Equality Banking Act provide? (2)

A
  • Provided money to cover the money lost by closed S&Ls
  • Was not enough
21
Q

How many dollars had S&Ls lost by 1988?

A

$10 billion

22
Q

What happened as a result of the losses of S&Ls in 1989?

A

Property market collapsed

23
Q

What did Bush sign in 1989?

A

Financial Institutions Reform Recovery and Enforcement Act (FIRREA)

24
Q

What did FIRREA do?

A

Bailed out some failing organisations, closed others and set up new federal regulators

25
Q

How much did FIRREA cost?

A

$150 billion

26
Q

How did the buying power of the dollar decreasing affect the US? (2)

A
  • Foreign imports became cheaper, so imports of foreign goods rose
  • American companies lost business
27
Q

What industry was affected the worst by the reduction of the US dollar?

A

Textile industry

28
Q

How many textile plants were forced to close between 1980 and 1985?

A

250 textile plants

29
Q

How many workers lost their jobs in the textile industry between 1980 and 1985?

A

over 300,000 workers

30
Q

Supporters of Reagan on the rise in foreign imports:

A
  • Gave consumers more choice and argued that it made the USA an attractive place for other countries to trade and invest in
  • Japanese investment was bringing money in the country and ignoring the fact that many Japanese re-invested their profits, made in the USA, in Japan
31
Q

What good did Japan increase sales in the USA?

A

Cars

32
Q

What did Reagan fail to abolish from the Carter administration?

A

The Department of Education

33
Q

What did Reagan reduce the staff of the Department of Education by?

A

25%

34
Q

What did Reagan decrease education block grants of the Department of Education to the states by?

A

63%

35
Q

What did civilian employment in the federal government increase by?

A

3%

36
Q

Why did employment in the federal government increae?

A

Due to Reagan’s emphasis on building up the national defence

37
Q

How much did civilian employment grow by in the national defence?

A

11.5%

38
Q

Reagan on benefits:

A

Reduced the level of benefits such as Aid to Families with Dependant Children (AFDC)

39
Q

How many children lived under the poverty line in 1984?

A

Roughly 13 million children

40
Q

How many federal programs had been cut?

A

212

41
Q

Social security Benefits:

A

Were cut BUT increase payroll taxes that funded Social security

42
Q

What act did Reagan veto that got overrode by Congress?

A

$18 billion Clean Water Act

43
Q

What did Congress pass after Reagan attempted to veto the Clean Water Act?

A

1987 Water Quality Control Act

44
Q

What amount bailout did S&L’s need?

A

$132 billion - the costliest financial scandal in US history

Reagan (7 decks)

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