Transcript Aim: What changes to government were made during the

Aim: What changes to government
were made during the administration
of Ronald Reagan?
Introduction
• Moments after taking the oath of office, President Ronald
Reagan announced the release of 52 American hostages in
Iran.
• Although the negotiations were held under the administration
of Jimmy Carter, Reagan seized the moment and became
immensely popular.
• Under the administration of Ronald Reagan, the United States
became more conservative in domestic affairs than it had been
since the period before the New Deal.
• The United States also took a stronger stance on foreign
affairs.
Ronald Reagan-40th President
Ronald Reagan was elected in 1980. He was a former Hollywood actor
and he was the governor of California during the late 1960s.
Inauguration Day-January 20, 1981
“Government is not the solution of our problems, government is the problem.”
Ronald Reagan
The Birth of the Conservative
Republican Presidency
The Release of the Iranian Hostages
1. Changes in Governmental Policy
• The popularity of Ronald Reagan helped him to make
some major changes in government policy.
• Reagan had known since the days of the New Deal,
the government had grown very big.
• Reagan wanted to shift some responsibilities of the
federal government to the local and state
governments.
1.1 Reagan’s Style
• President Reagan changed presidential style along with
government policy.
• Reagan abandoned the policy of working 12 hour days. He
worked from 9-to-5 and took time off to relax whenever
possible.
• Reagan built his style of government on the cabinet model
used by Eisenhower.
• Reagan, calling himself, the chairman of the board, delegated
authority to each of his cabinet members.
• Reagan set policy, but he allowed others responsibility for
carrying them out. However, Reagan made it known that he
would act quickly and firmly when necessary.
Reagan: “The great communicator”
Reagan at his California Ranch
Nancy Reagan
Nancy Reagan was Ronald Reagan’s second wife. She was responsible for
Reagan’s inauguration costing an estimated $16,000,000.
The Assassination attempt
Ronald Reagan faced an assassination attempt on March 30, 1981 in
Washington, DC. He recovered and his popularity was still intact.
The Recovery
John Hinckley, Jr.
James Brady-Reagan’s Press Secretary
James Brady was Ronald Reagan’s press secretary who was wounded
when Reagan was assassinated. He would become a leading figure for
Americans against the right to bear arms.
Alexander Haig
As Reagan was being rushed into
Walter Reed Hospital, Vice President
George Bush flew back to
Washington, DC.
Secretary of State Alexander Haig
believed that he was the interim
acting President of the United
States.
He wasn’t. The Speaker of the House,
Thomas “Tip” O’Neill was.
This is a funny moment in US History.
1.2 Recalling Campaign Promises
• As a candidate, Reagan promised that he
would reduce the size, the power and spending
of the federal government.
• Reagan stated that, “It is time to check and
reverse the growth of government which
shows signs have grown beyond the consent of
the governed.”
Reagan was against the ideas of:
Under President Roosevelt and President Johnson, the Federal government had grown too
large. Reagan believed that the state and local governments should take on more roles that
once belonged to Washington, DC.
• As President, Reagan immediately turned to
the federal bureaucracy or the government
work force.
• The government bureaucracy, which in 1981,
numbered five million people, refused to hire
any more people.
• Besides a hiring freeze, Reagan abolished
some small government agencies and offices.
• Reagan also refused to add any more federal
regulations to government offices and asked
vice president Bush to review regulations.
• Although some regulations were changed, the
size of the federal government was not reduced
by much.
Airline Controller’s Strike
In 1981, the Professional Air Traffic Controllers Organization went on
strike.
They were prohibited by law to go on strike, it was a federal law that
they were violating.
Reagan, as a result of their actions, fired the entire union for this act.
• President Reagan also honored another
campaign promise, when, on July 7, 1981, he
appointed Sandra Day O’Connor to the United
States Supreme Court.
• O’Connor was the first woman to be appointed
to the United States Supreme Court.
• Reagan also named three women to cabinet
positions and appointed Jeanne Kirkpatrick as
ambassador to the United Nations.
• In 1983, he appointed Elizabeth Dole to the
position of Secretary of Transportation and
Margaret Heckler as Secretary of Health and
Human Services.
Women in the Reagan Administration
Sandra Day O’Connor was appointed to
the United States Supreme Court.
O’Connor was the first woman to have
been appointed to this position by
President Ronald Reagan.
O’Connor was a swing justice meaning, on
many occasions, she voted to keep and
preserve a woman’s right to choose and
other social issues.
She retired in 2006.
Women in the Reagan Administration
Jeanne Kirkpatrick was the first
woman to be appointed as the
American ambassador to the
United Nations.
She, too, was appointed by President
Ronald Reagan during his first
term in office.
Women in the Reagan Administration
Elizabeth Dole was appointed to the job of
Secretary of Transportation by President
Ronald Reagan.
She would later lead the Red Cross, help
her husband Robert Dole try to become
President in 1996.
In 2000, she tried unsuccessfully to run
for President.
She is the senior Senator from the state of
North Carolina.
1.3 Energy and the Environment
• President Reagan proposed changes in
government policy in energy and the
environment.
• Reagan believed less government regulation in
these areas and took steps in that direction.
• On January 28, 1981, Reagan ended
government controls on oil and gasoline
prices.
• By doing this, Reagan believed this would help conservation,
production and develop new technology. This would be a first
step towards a balanced energy program.
• At the same time, Secretary of the Interior, James Watt, ended
government protection of the environment.
• Watt allowed private companies to look and drill for oil in
coastal waters and wilderness areas.
• By allowing private companies to look for oil, this would
allow the United States to become less dependent on foreign
oil.
• The changes in our policy did not sit well with
environmentalists.
• Many environmentalists felt that resource exploration would
lead to dangerous oil spills and destruction of the natural
beauty of the United States.
• The plan drafted by Watt was turned down by the US House of
Representatives.
• In 1982, the Environmental Protection Agency was charged
with failing to enforce toxic waste laws.
• The head of the EPA, Anne Burford, was cited for contempt of
Congress for refusing to turn over EPA files to the Congress.
She was forced to resign.
• Watt was also forced to resign for his environmental policies.
James Watt
As Secretary of the Interior, Watt is among
the worse to have ever held the job.
As President Reagan’s nominee, Mr. Watt
started policies that were considered to be
“unsafe” in the eyes of environmentalists &
the American people.
His policies included ending government’s
role in protecting the environment, a role
that was started by Republican President
Teddy Roosevelt.
He allowed for private companies to take
land that once belonged to the American
people.
2. The Economy
• Reagan’s main concern was the economy.
• In his inaugural address, Reagan called on
Americans to begin an era of national renewal.
• Reagan outlined his plan as a new beginning,
in which, taxes and federal spending would be
cut to make the economy grow and end
inflation.
2.1 Reaganomics
• On February 18, 1981, Reagan outlines his
economic plan to Congress.
• The plan called for a $41.4 billion cut in the
$739 billion dollar budget that Carter had
planned.
• Reagan also asked for a 30% cut in income
taxes that would be spread out over a threeyear period.
• To get his budget passed, Reagan compromised with
the US Congress, but got most of what he wanted.
• Congress agreed to budget cuts of $35.2 billion for
1982 and income tax cuts of 25% over three years,
the largest ever in US history.
• Reagan also was allowed to make an additional $8.2
billion in cuts for federal spending because of the
growing federal budget deficit.
• There were many who opposed the policies of Reagan,
including, Thomas O’Neill, the speaker of the House of
Representatives. He called the program Reaganomics.
• Reaganomics planned to increase the production/supply of
money.
• With the tax cuts, the production of money would benefit the
rich and would cause the government to lose money.
• The Democrats also did not appreciate that Reagan was
spending more on defense and by doing this, Reagan would
cut social programs.
• The Democrats were correct in their
predictions about Reaganomics.
• The new budget reduced spending on certain
programs and eliminated other programs
entirely.
• Military spending increased dramatically and
by the end of Reagan’s first term, the budget
deficit had doubled.
The Goals of Reaganomics
• Reduce the growth of government spending.
• Reduce marginal tax rates and labor and
capital.
• Reduce government regulation of the
economy.
• Control the money supply to curb inflation.
2.2 New Federalism
• Cuts in spending helped Reagan with his
idea of New Federalism.
• This idea, first proposed by Nixon in 1969,
stated that local and state governments
should take more responsibility for social
programs.
• In 1982, Reagan suggested that state and
city governments to take over the Food
Stamp program and Aid to Families with
Dependent Children (AFDC).
• In return, the federal government would
cover all costs of Medicaid payments.
• Congress also made certain changes
regarding the elderly and disabled. First,
these two groups were forced to pay more
for their health care.
• Unemployment benefits were slashed from
39 weeks to 26 weeks.
• In certain states, public service jobs were
eliminated and Reagan expected certain
private groups and volunteer agencies to
play a greater part in providing social
programs.
• Some city and state leaders had criticized
Reagan’s New Federalism because their
governments could not handle the costs of
these social programs. Others felt this
would lead to higher taxes and more cuts.
2.3 Tax Increases
• Even with the cuts in government
spending, the economy was not improving.
• Reagan’s cuts reduced inflation, but there
was the problem of high unemployment,
high interest rates, and the highest budget
deficit in history.
• In 1982, Reagan asked Congress for a
three-year increase in federal taxes, but
refused to repeal the income tax cuts of
the year before.
• Reagan asked for tax cuts that would give
the government another $98.3 billion
dollars.
• Reagan blamed the need to raise taxes
because of the deficit and the big
spending policies of the past.
• Using television and newspaper
advertisements, Reagan gained the
people’s support for his programs.
• Reagan also used political and personal
pressure to gain support in the Congress.
• With the help of the Democrats, such as
Senator Ted Kennedy and Speaker of the
House O’Neill, Reagan got his bill passed.
• The program placed a 10% tax on interest
and dividends and raised taxes on
cigarettes, telephone services and air
travel. It cut certain income tax allowances
and established a system for earning tips.
2.4 Legislative Setbacks
• A few weeks after the tax victory, Reagan
suffered his first legislative setback.
• Reagan opposed a $14.2 billion dollar bill
that would have aided farmers and the
elderly.
• Calling the bill a budget buster, Reagan
faced opposition by Democrats and
Republicans who believed the money was
needed.
• Reagan vetoed the bill, but the US
Congress overrode his veto.
• However, Reagan’s aid to businesses had
a positive effect on the stock market,
which had begun to rise during the first
term of Reagan’s administration.
• The rise was temporary and did not
represent the entire economy. The
unemployment rate was still at 11%.