To What Extent was 'Big Government' Reduced? Flashcards
What is New Federalism
The concept of transferring power away from the Federal Government and becoming less involved in each state and daily life
Is New Federalism and reduction of Big Government a good thing? (why and why not)
It could be as it gives each individual more freedom financially and people were often suspicious of government intervention.
It could not be because it reduces funding for welfare and local or state projects
What deregulation legislation was passed on the 28th January 1981
Executive order to deregulate oil and fuel prices passed originally by Carter is brought forward
What deregulation legislation was passed on the 29th January 1981
Executive order to stop wage and price regulation
What deregulation legislation was passed on the 26th March 1981
Executive Order sets up the President’s Council on Integrity and Efficiency
What deregulation legislation was passed on the 8th April 1981
Executive Order setting up the Presidential Advisory Committee on Federalism
What deregulation legislation was passed on the 17th July 1981
Deregulation of controls on fuel prices
What deregulation legislation was passed on the 20th September 1982
Bus Regulatory Reform Act deregulates bus services
What deregulation legislation was passed on the 15th October 1982
Garn St Germain Depository Institution Act deregulates building societies
What deregulation legislation was passed on the 26th February 1983
Deregulation of natural gas supplies
What deregulation legislation was passed on the 20th March 1984
Shipping Act loosens regulations on US and foreign shipping
What deregulation legislation was passed on the 30th October 1984
Cable Communications Act deregulates cable communications
What deregulation legislation was passed on the 22nd October 1986
Surface Freight Forwarder Deregulation Act removed government restrictions on freight forwarders (companies that arrange the shipment of goods by land-based transportation) making them easier to operate
What deregulation legislation was passed on the23rd August 1988
Foreign Trade and Competitiveness Act allows the President more rights in making trade treaties to benefit the USA
3 problems that deregulation caused
- Big companies could easier buy out smaller companies without regulation and establish a monopoly
- Big businesses could fix a price structure with each other so they did not have to compete, reducing price fall
- Many businesses such as airline and phone companies cut services to rural areas to maximise profits
What was the Savings and Loan collapse
A collapse in the savings market throughout the mid-1980s caused by increased interets rates bankrupting the building societies
What acts did Reagan pass to counter the Savings and Loan Collapse
1987 Competitive Equality in Banking Act - Provided money to cover the money lost by closed S&Ls
1989 Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) (Done by Bush), setting up federal regulators and bailing out some banks at a cost of $150 billion
By 1988 how much had the S&L collapse lost in money
$10 billion
How did the idea of Big Government affect the S&L crisis
Big Government could be reduced by not intervening much in the crash, so Reagan did little, however this led to world trade shifting against the USA, leading to an increase in foreign imports, a decrease in the value of the dollar and an increase in foreign companies acquiring American ones
Why did deregulation not happen to the extent that Reagan wanted
State and local governments often did not want to take over federal projects as they didn’t want to pay for it
How did public opinion change on deregulation after the end of the Reagan Administration
They were more opposed to it as it became clear that deregulation led to businesses becoming more self serving and gained the opporutnity to maximise profit over public benefit (for example planes flying to less places and for higher prices)
