Conservative Resurgence and Reaganomics Conservative Backlash during Ford

Conservative Resurgence and Reaganomics

Conservative Backlash during Ford and Carter Years ● ● Revival of fundamental Christianity Televangelists – Jerry Falwell, Pat Robertson, Billy Graham Opposed social changes and supreme court rulings Social conservatives allied with fiscal conservatives

Two Views Emerge Liberal (Democrat) ● ● Government intervention Social programs Government regulation Social change Conservative (Republican) ● ● Free market Reduce taxes Decreased regulation Traditional values

Conservative Movement Gains Strength ● Republicans critical of Liberal policies ● Emergence of New Right – conservative resurgence ● Stagnant economy, counterculture, taxes made Democratic ideas unappealing

Conservative Movement Gains Strength ● ● Believed government taxed citizens and businesses too much Criticized federal welfare programs – reward lack of effort Moral Majority supported Conservatives White Southerners began supporting Republicans

Reagan Wins Presidency ● ● ● Grew up during the Depression Hollywood actor Then served as spokesman for GE New Dealer -> Goldwater conservative Governor of California 1967 -1975 Conservative movement swept (R) Ronald Reagan to victory in 1980 election

Reaganomics ● AKA supply-side economics ● taxes are reduced -> people work more-> more money to spend -> stimulates economy -> government will collect more in taxes ● would have to reduce federal spending

Reaganomics Implemented ● Economic Recovery Act of 1971 – taxes cut by 25% over 3 years ● Biggest cuts for the richest -> trickle-down economics -> the rich would invest which would help everyone ● $40 billion cut from Federal Budget ● deregulation of airline, telecommunications, and banking industries ● 1980 -1982 – Recession hit – 1983 economy began to improve

Problems with Budget Deficits ● increased defense spending but did not win enough cuts in gov’t spending ● caused a budget deficit – national debt rose to $2. 5 Trillion ● Savings and Loan Crisis

Conservative Strength Grows ● Reagan reelected in 1984 ● Reagan appoints conservative Justices – O’Connor (1 st female), Scalia, Kennedy ● Equal Access Act – public schools had to give equal access to all groups ● 1988 – George HW Bush elected = 12 years of Republican presidents

Confronting Challenging Issues ● Reagan fired air traffic controllers that went on strike ● Raised minimum retirement age - b/c social security system was going bankrupt ● Students were scoring lower on standardized tests ● AIDs epidemic started