U.S. History / Unit 10: Modern America
10.1 The Conservative Resurgence and Reagan
Notes
By 1980, many Americans were frustrated by inflation, the Iran hostage crisis and distrust of government. A conservative movement grew.
- The New Right united groups favoring lower taxes, less regulation, a strong military and traditional social values. Religious groups like the Moral Majority were active.
- Ronald Reagan won the 1980 election, saying "government is not the solution to our problem; government is the problem."
- Reaganomics (supply-side economics): cut taxes, especially top rates, so people and businesses would invest more, creating growth that would "trickle down."
- Reagan cut some domestic programs, deregulated industries and greatly increased military spending.
- Results: inflation fell and the economy grew strongly after 1983. The national debt roughly tripled, and the gap between rich and poor widened. Supporters credit Reagan with restoring growth and confidence; critics argue his policies favored the wealthy and increased deficits.
- Reagan appointed Sandra Day O'Connor, the first woman on the Supreme Court (1981).
Practice
Supply-side economics, or "Reaganomics," was based on the idea that:
Supporters argued tax cuts would spur growth; critics called it "trickle-down" economics.
Which was a result of Reagan's policies in the 1980s?
Tax cuts and higher military spending without matching spending cuts led to large deficits.
A voter in 1980 wants lower taxes, less federal regulation, a stronger military and a return to traditional values. This voter most likely supported:
These were core goals of the conservative movement that elected Reagan.
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