I. Introduction
Economic problems during the 1970s made possible a conservative resurgence with the election of Ronald Reagan in 1980. Unfortunately, the Reagan years also polarized America.
II. Economic Crisis and Ford’s Response
A. OPEC Price Increases Fuel Inflation
In 1973 OPEC raised the price of petroleum, which hurt consumers but added to oil companies’ profits.
B. Auto Industry Recession
Americans began buying smaller, foreign?made cars, leading to a major recession for American manufacturers.
C. The Shifting Occupational Structure
Deindustrialization led to layoffs. As Americans lost high?paying industrial jobs many found themselves in lower?paying service occupations.
D. Lagging Productivity
Lack of capital improvements, declining educational standards, and a declining work ethic created a drop in productivity.
E. Easy Credit and Inflation
Increased buying on credit in the 1970s drove prices up.
F. President Ford’s Response
Ford, following the tenets of monetary policy, cut federal spending and encouraged the Federal Reserve Board to raise interest rates to banks. The nation became mired in its worst recession in 40 years.
G. Nuclear Power
When OPEC lifted its embargo, incentives to find alternative fuel diminished. Despite accidents at nuclear power plants, some advocated more reliance on nuclear energy.
H. Gerald Ford’s Presidency
Throughout his term, very little was accomplished.
I. Election of 1976
Jimmy Carter took advantage of the reaction against Watergate to defeat Gerald Ford in 1976.
III. Continuing Economic Problems and the Carter Presidency
A. Economic Discomfort in 1980
Unemployment and inflation produced a very high “discomfort index.”
B. Carter’s Flagging Popularity
Carter’s economic policies angered liberal Democrats. The Iranian hostage crisis and OPEC price increases led to public disapproval.
C. Carter’s Domestic Accomplishments
Carter took noteworthy steps in the areas of energy, transportation, and conservation policy.
IV. Conservative Resurgence and Reagan
A. Resurgence of Conservatism
The growth of the Sunbelt, political skepticism, and a new political alignment led to a resurgence of conservatism.
B. A Shifting Population
By 1980 the American population had grown older, and people continued to move to the Sunbelt.
C. Reagan as the Republican Candidate
Promising to follow the tenets of “supply-side” economics, Reagan appealed to a broad range of voters and united the old right and the new right within the Republican Party.
D. Election of 1980
Reagan attracted broad support, and Republicans also made gains in the Senate, House, and governors’ offices.
V. “Reaganomics”
A. Tax Cuts
Reagan’s policies produced the largest tax cut in history.
B. Weakened Environmental Enforcement
Reagan appointed opponents of regulation to important environmental posts.
C. Hard Times for Labor Unions
Union negotiators had to settle for less than they were accustomed to receiving.
D. Falling Inflation
Lowered interest rates, increased oil production, and continued unemployment drove down prices.
E. Rising Unemployment
By 1982, unemployment reached 10.8 percent. Supply?side economics did not lift America out of recession.
F. Resurgence of Poverty
Despite increased poverty, especially among minorities and families headed by women, Reagan cut welfare aid.
G. The Election of 1984
An improved economy and his reputation as a strong leader helped Reagan as he faced re?election. Reagan won a landslide, taking every state except Mondale’s home state of Minnesota.
VI. People of Color and New Immigrants
A. Declining Job Opportunities for African Americans
Many African Americans suffered severe economic dislocation as the number of blue-collar jobs declined.
B. African American Middle Class
Although the number of poor African Americans increased, the black middle class was also expanding.
C. White Backlash
Many white Americans expressed racial resentment over affirmative?action programs and forced school busing.
D. Black Anger
African Americans felt great anger over what they perceived as a racist judiciary and administration.
E. Native Americans
Native Americans, suffering a high incidence of certain diseases and high unemployment, began to become more militant.
F. “Red Power”: Indian Self-Determination
In 1973 members of AIM seized 11 hostages and a trading post at Wounded Knee, South Dakota. In 1974 Congress passed the Indian Self-Determination Law.
G. Indian Suits for Lost Land
Many Indians sued for compensation and protection through the Indians Claims Commission, but generally Native?Americans’ rights remain vulnerable.
H. Hispanic Americans
Hispanic Americans comprise a large, and increasingly important, minority group in the United States.
I. Hispanic Cultural Pride
Many Hispanics, who prefer their own culture to that of Anglo?Americans, have resisted assimilation.
J. New Influx of Immigrants
The United States absorbed some 13 million immigrants from 1970 to 1990, many coming from the Third World.
K. Immigration Reform
In 1986, Congress passed the Immigration Reform and Control Act to discourage illegal immigration.
VII. Feminism, Anti?Feminism, and Women’s Lives
A. Antifeminist Movement
“Pro-family” groups blamed feminism and the women’s movement for many of America’s social problems.
B. Equal Rights Amendment
Antifeminists succeeded in stopping ratification of the Equal Rights Amendment.
C. Women Opponents of Reagan’s Conservatism
Many people condemned Reagan for his programs, which they believed hurt women and children.
D. Increased Burdens on Women
Recession, spiraling divorce rates, and responsibility for the home and family put economic pressure on women.
VIII. A Polarized People: American Society in the 1980s
A. Increasing Inequality
Increased poverty caused a widening of the gap between poor and affluent Americans.
B. Changing Job Market
The reliance on low?paying service jobs caused a substantial drop in many American’s standards of living.
C. Drugs and Violence
Illegal drugs, particularly cocaine and “crack,” have been extremely harmful to the urban underclass.
D. AIDS
Acquired Immune Deficiency Syndrome divided communities and led to a change in Americans’ sexual behavior.
IX. Economic Upturn and the Election of 1988
A. Mounting Fiscal Deficit
Under President Reagan, the national deficit rose to an extraordinary level.
B. A Conservative Supreme Court
Reagan appointed more conservative justices to the Supreme Court during his second term.
C. Iran?Contra Scandal
Questions over the illegal sale of arms to the contras and concern with Reagan’s management style hurt the president politically.
D. Reagan’s Decline
The Great Communicator took on the appearance of a tired, bumbling old man.
E. Continuing Economic Recovery
Many people benefited from the six-year economic recovery.
F. George H. W. Bush
After a bitter primary campaign, Vice President George Bush won the Republican nomination.
G. Presidential Campaign of 1988.
The campaign was characterized by the use of clichés and negative attack ads.
H. Bush’s Victory in 1988
Peace abroad and a stable economy at home helped ensure a victory for George Bush over Michael Dukakis.
