Modern US History Reaganomics Vocab List 41 P

Modern US History Reaganomics

Vocab List 41 P 460 CH 20 -Liberal -Conservative P 464 -Supply Side economics -Mutually Assured Destruction P 473 -Perestroika -Glasnost

I. The Election of Reagan • • o Previous Presidents from last time: o Richard Nixon: A crook for the Watergate Scandal. Resigned. o Gerald Ford: Did nothing except pardon Nixon o Jimmy Carter: Considered weak for the hostage Crisis, his giving away our Panama Canal, and trying to. . help the poor… In comes Reagan - a former actor who has relentless optimism for ‘MERICA. He believes in: o Low Taxes, Free Market, Militant against USSR He hates: o Welfare, public busses, affirmative action, big government, and black advancement.

II. Reaganomics : ( • • Goals are to stop unions, lower taxes & free the market. Taxes: o Lowers the tax rate for richest from 70% to 30% >< o Believes in Supply Side economics (“Trickle down economics”) § Don’t tax rich people so they spend more and fund more private companies which creates more jobs. Work harder to keep more of your $$$$ § This does not work. Wall Street BOOMS: People made more money buying/merging companies than actually. . running companies… Consequences: by 1990 s - the richest 1% have 40% of all the wealth o Homelessness exploded.

From Michael Moore

III. The Cold War Ends!! • • Remember - he was elected on hating USSR. *Different approach depending on the term* First Term 1980 - 84 o Called USSR evil empire o Joked we would nuke them o Spent tons in military o Staged war games (fake war) with allies in 1983 that were so realistic that the USSR almost launched Nukes thinking it was the real thing…

IV. Second Term Reagan • • During his first term he spent as much on military defense as Nixon, Carter & Ford combined (and they had Vietnam!! + other crisis) Second Term: - 1984 -88 o After almost ending the world in 83… he becomes a Nuclear Abolitionist - tries to reduce # of warheads o New focus is reduction of tension bw Russa & USA o Mikhail Gorbachev - the Russian President who joins Reagan in ending Cold War § Glasnost - openness = Freedom of Speech/Religion in USSR § Perestroika - restructuring = Private companies for first time

Reagan and the Cold War

V. The Iran-Contra Scandal • • This is the craziest Scheme ever. Contras - anti-communist rebels in Nicaragua trying to overthrow government o Reagan wants to support them BUT o Congress made law saying we could not The Plan: o Sell guns to Iranian Government (our enemy… remember Iranian Revolution) to funnel profits to the Contras Reagan broke the law, giving guns to our enemy to pay for rebels in another country…. o *FACEPALM*

Iran Contra Scandal vid