Politics of Conservatism
Definition of conservatism-Modern conservatism has been deeply rooted in the Republican Party since the election with Barry Goldwater running on the Republican ticket, advocating his conservative views. Conservatism in itself is a political ideology in which political policies are to be carried out as they have been doing since the founding, and have strong values in faith and family. Specifically to Americans, it deals with a belief in a small federal government, little intervention in businesses, and supply-side economics. Modern conservatism tried to embrace these values and bring in new core ones, starting with the Reagan administration after the election of 1980. Reagan highly emphasized supply-side economics, which is based on giving tax cuts to the wealthy, and the wealth will “trickle down” to the lower classes, which was now anointed “Reaganomics.” Also the modern conservatives began to have a more aggressive foreign policy. With Reagan, and also later with Bush, they tried to fight against communism by making democracy seem more appealing, which was another republican ideology. Also modern conservatism was firmly rooted in the faith of God, and such laws that were written in holy texts. These written texts speak against homosexuality and abortion. As America became more diverse in these times, so was the religious fundamentalism in which conservatives believed in.
http://en.wikipedia.org/wiki/Conservatism_in_the_United_States#Types_of_conservatismThe American People (our textbook)
Definition of conservatism Bias-
Honestly, I detect no bias in this statement, for it states the facts of modern conservatism in an analytical perspective.
Shift to Fiscal Conservatism-
The new Republican era can be defined as a shift to fiscal conservatism. Fiscal in itself means the spending of the government money to influence the economy. Fiscal conservatism is defined as the reduction of government spending and the balancing of the budget. Also, free trade and deregulation of businesses are common policies. Fiscal conservatism was not only a movement in the U.S, but one encompassing around the globe, especially the Conservative Party in England. Some policies, conservatives had to cut back on. Cutting back on fiscal policy was important to stop the growth of the debt the American government was in. Income tax rates were reduced and went very low, from 70% to 28% in seven years. Government was downsized due to their belief in quotes such as “the best government is the one that governs least.” Business regulations were decreased, because conservatives believed that it hampered competition and the growth of the private enterprise. With these new policies, the conservatives were able to help some issues. First, with the deregulation of business, it helped create more jobs, which in turn lowered the percentage of the unemployed. With more employment, coupled with the free reigning businesses and tax reductions, inflation started to become under control.
Shift to Fiscal Conservatism Bias-
This essay has some information that can lead you to infer that it was written by a liberal-minded person. The words “conservatives had to cut back on,” agree with this statement. Also conservatives only helped “some issues,” is another bias a liberal would make.
http://en.wikipedia.org/wiki/Fiscal_Conservatismhttp://eightiesclub.tripod.com/id367.htmEnding of Social Reform-
The start of the modern conservative era also brought the end of social reform. After the major social movements of the 60’s and 70’s, the modern conservative era starting in the 80’s really brought things to a “low simmer”. With the conservative attacks on the welfare state, they vouched to end it due to it being damaging to the middle class. The Supreme Court ruled in favor affirmative action and allowed a few exemptions from desegregation in an Atlanta suburb in
Freeman v. Pitts. They courts also restricted the liberties of free speech. This ending of reform, created a surge of energy from African-Americans. The reverend, Jesse Jackson, ran for the presidential nomination in both 1984 and 1988, but fell short of his goal both times. He had the support of over 400 delegates in 1984, and over twelve hundred in 1988. Also, the African-American people were ready to fight. When the tension between the black Americans and the police escalated after the beating of a motorcyclist Rodney King, a riot broke out in Los Angeles, which led to the death of over fifty people. Similar riots broke out around the country. “Racial injustice, social inequality, and poverty,” were prevalent in the modern conservative era.
Ending of Social Reform Bias-
This essay shows a lot of bias, that the conservative era in politics was a big frock. Nothing got accomplished, especially on a political scale. The last jab for some sort of political freedom in the 80’s, were African-Americans seeking truly social equal rights. Though, they fell short of their goals, for the reverend Jesse Jackson didn’t receive the nomination. This is totally from a liberal point of view.
The Elections: Why people voted Conservative-During the 1980s and even into the very early 90s, support of Conservatism grew to unimaginable heights. But, during this period known for Conservative values and politicians did US voters go with what they believed in or did they vote against what they were mad at.
In the 1980 presidential election, with Carter as incumbent and Reagan as challenger, the focus was on the failures of the Democrats financially and militarily. Americans were beginning to feel that President Carter and other Democrats weren't strong enough militarily or economically. Carter's dealings with foreign countries caused the start of a recession, rising gas prices, a hostage crisis, and higher interest rates; and Ronald Reagan and the Conservatives used this to their advantage.
The seeds of Conservatism were planted during the second presidential debate in October, it pitted a dismal President Carter against a positive and charismatic Reagan. Voters and analysts viewed this as a win for Conservative America, though they weren't necessarily better, they were just more appealing due to the fact that they were new and weren't the ones who put citizens into the position they were in at the time.
Of course, their 1984 and 1988 presidential election wins weren't just because of a distrust in big government, the failures of others, bitter attitudes, and the shortcomings of Democrats. They won due to the popularity and optimistic feelings that Reagan conveyed. Sure, the economy wasn't fixed, the government wasn't accepting of all people, and the Soviet Union was still a major threat to Americas well being, but people were mostly happy and felt better because their president was just so damn cute and conservative. The popularity of Ronald Reagan, known as the Reagan Revolution, lead to conservative wins in many elections and even helped get George H. W. Bush elected in 1988.
-http://en.wikipedia.org/wiki/Conservatism_in_the_United_States -Witness to America: An Illustrated Documentary History of the United States from the Revolution to Today by Stephen Ambrose & Douglas Brinkley -http://en.wikipedia.org/wiki/United_States_presidential_election,_1980 -http://en.wikipedia.org/wiki/United_States_presidential_election,_1984
The Elections: Why people voted Conservative-BIAS This essay conveys a very biased view on the 1980s elections in which Conservatives gained much of their power. Assumptions and inferences are made about why some people voted for conservative politicians. On the other hand though the statements about presumed failures of the Democrats were widely accepted and believed by many. A reader of this might also presume that the United States was split between Conservatives and Liberals ideals, but truly it was no different then other times in history with other political divides. Also, it leads people to believe that all Conservatives are Republicans and all Republicans are Conservatives, which is not necessarily true.
Military Expenditures- From 1981 to 1992 the United States underwent drastic changes, especially in the areas of military policies and and spending. After years of antiwar feelings and attempts at diplomatic relations with the Soviet Union the new president, Ronald Reagan, took the country in an entirely different way. Reagan's conservative ideals and policies led to a military buildup, which increased defense spending by forty percent. This increase in spending was Reagan's way of defeating Communism by outspending and out producing the Soviets in every way possible with new age top of the line weaponry. One high cost program that Ronald Reagan initiated during his presidency was the Strategic Defense Initiative; the program dubbed Star Wars by critics and supporters alike was meant to protect the US from nuclear attack with laser beams on satellites and had a whopping 100 billion dollars spent on it. It was spending like this that frightened American enemies abroad, especially the Soviet Union who felt that any country whose president would speak so openly about it and put so much funding into it, had to be real. Defense spending reached unheard of heights during the conservative presidencies of Ronald Reagan and George H. W. Bush. During the 80s, when conservatism was at its peak in popularity, trillions of dollars were spent to build a stronger, bigger military despite the fact America faced an enormous deficit.
http://www.u-s-history.com/pages/h1957.html http://www.globalsecurity.org/org/news/2004/040609-reagan-military.htm http://en.wikipedia.org/wiki/Strategic_Defense_Initiative
Military Expenditures-BIAS The writer of this seems to feel that the expenditures of the government during the 1980s were ridiculous and from their views, clearly were born after the end of the Cold War due to the fact that don't seem to view the Soviet Union as having been much of a threat. But, for the most part the article doesn't seem to be overly critical of the spending and for the most part it states facts, figures, and accepted views of the time.
Conservatives Change Foreign Policies- The foreign policies of Ronald Reagan and George H. W. Bush were heavily influenced by the conservatives views they held. Reagan's policies became known as peace through strength while Bush's at first nearly mirrored that of Reagan. During this busy decade the United States foreign policy was, of course, consumed with dealing with the Soviet Union and its fall. The foreign policy goals of the Reagan administrations were made clear in the Reagan Doctrine, which stated that the United States military and government would provide overt and covert aid to movements that faced a Communist threat. The plan was to roll back the Communist influence, which differed greatly from the ideas of containment that was used by previous presidents. It was during this time that Cold War policies were the boldest, Reagan was fully willing to confront the USSR and boldly built up the military to unheard of heights. Once again Reagan's charisma became a powerful political tool, he recognized that diplomacy was now a way in ending the communist threat to America. The policies of Reagan and the new premier Gorbachev led to the weak Soviet Union that would eventually fall after Bush and Gorby became best buddies. Within the twelve years of 80s conservatism under Reagan and Bush, the US was involved with many foreign affairs. American forces and aid were sent to countries all over the world, most notably in Iraq during the Persian Gulf War during the presidency of Bush. Grenada because of the overthrow of their prime minister and to rid them of Cuban Communist influence, Nicaragua to support anti-Sandinistas with the CIA, Panama, and the Middle East by supporting the Mujahideen, Iraq, Kuwait, and Iran all at separate times.
http://www.u-s-history.com/pages/h1957.html http://www.globalsecurity.org/org/news/2004/040609-reagan-military.htm http://en.wikipedia.org/wiki/Strategic_Defense_Initiative http://en.wikipedia.org/wiki/Foreign_policy_of_the_Reagan_administration#cite_note-2
Conservatives Change Foreign Policies- This article has surprisingly little bias, the only small point that may be considered bias by some would be the declaration that George Bush merely copied the policies of Reagan at first. Of course, the article is not free of a few satirical points about the leaders of the 1980s. Other than that it just states a few of the more prominent foreign affairs and events that took place during this time.
-Conservative Governmental Changes (the War on Drugs was too limiting)
The conservatives of the 1980s sought to create what they called a smaller federal government. Reagan adhered to the Conservative doctrine of New Federalism, shifting programs from the federal government to state governments. He also decreased the regulatory power of some federal agencies, like the FAA. He appointed James G. Watt secretary of the interior, whose policies allowed the economic development of previously preserved land. Watt cited what he believed to be the nearness of the Second Coming of Christ in Christian scripture as justification for this shift. Reagan also cut funding to the EPA and OSHA. The efforts made during this time were often direct reversals of Lyndon Johnson's Great Society programs. Medicare and welfare benefits decreased under the orders of Conservative officials. The role of the first lady also grew somewhat. Nancy Reagan toured the country in support of the "Just Say No" campaign. It began as an extension of the War on Drugs, coupled with the increased penalties for drug offenders, which encouraged the nation's youth to avoid drugs by repeating a buzzword and using celebrity endorsement. It gradually extended to include various other perceived societal ills like premarital sex.
Bias- The writer seems to be slightly ridiculing the changes made by the Reagan Administration. He/she seems to maintain a relatively descriptive view for some of the passage, straying from it to make jabs at the programs and officials of the time. It is clear that he/she was opposed to the means of the War on Drugs and the environmental policies of the time.
-Religion
A fundamentalist Christian revival helped fuel the Conservative movement in the 1980s. New, charismatic Evangelical preachers used innovative media tactics. They were often termed "televangelists" due to their extensive use of newly-developing cable television technologies. The theology they embraced was one of selective literalism; that is, ministers selectively ignored some passages and picked others from the Bible and used them to claim to interpret God's will on modern social issues using them. Evoking revivalist preachers like those of the Second Great Awakening with their energetic sermons, they used their message to appeal to the emotions of millions of Americans.
The Evangelical movement held political power as well. Forming coalitions like the Moral Majority, they examined politicians' records with "litmus tests" to determine whether to support them or not. They were primarily concerned with what they perceived to be social ills. Pet causes within the movement frequently included opposition to drug use, abortion, and feminism, as well as support for instituting school prayer and tougher crime laws. Touting themselves as following "traditional family values," they advocated a return to an idealized version of the past, which they claimed the country had strayed from. Since the new conservatives of the 1980s also ran on "family values," it's unsurprising to note that they ended up garnering most of the movement's support. The Republican Party found a strong block of support in the Evangelical movement, which it could rely upon as long as it continued its social policies that favor fundamentalist religious beliefs. To this day, religious conservatives remain a highly reliable group for the Republicans.
Bias- The writer of this passage seems to disapprove of the fundamentalist revival of the 1980s. His/her explanation of televangelists' theology seems to be implying that they were twisting the message of the Bible to meet their own ends. When he/she mentions "family values," he/she seems to be claiming that the vision of the past the Evangelicals advocate a return to is inaccurate.
-Democratic Response
While the Republicans held the Presidency, the Democrats controlled the House for all of the 1980s and the Senate for the second half of the decade. Reagan, a former New Deal Democrat, set out to reverse social policies and economic policy set by liberal presidents like those found in Lyndon Johnson's Great Society program. When the Democratic majority in the House was weakened in the early 80's, the Democrats took desperate measures to try to regain power. Speaker of the House Thomas O'Neill decided to support Reaganomics, with his belief that when put into action, the consequences would be devastating for the country, and that the resulting backlash would be favorable to restoring the Democrats' power in Congress. Despite their weakness during the early 80's, determined congressional liberals were able to protect what they considered the government's role to give social aid to the less fortunate in society. Social Security, Medicare, and other aid programs remained intact, though weakened, throughout and after the Reagan Administration. The legacy of the New Deal and the Great Society, although support for them waned during the 1980s, was kept alive through the intervention of Democratic Congressmen.
Bias- The writer seems to think the social welfare programs of the Great Society are beneficial to American Society. He/she seems somewhat critical of officials knowingly helping to create national problems to garner political support, as shown by his criticism of O'Neill's plan to strengthen Democratic support. It seems like he/she doesn't quite support either side in the end, since he/she shows disdain for both.
Effectiveness of Conservative Policies
Conservative policies somewhat effective in meeting their goals. Reagan's policies partially contributed to, but did not entirely cause, the end of the Cold War. The INF and START treaties did make Americans safer from the threat of nuclear war. However, the Soviet Union collapsed not only because of international pressure, but because of domestic turmoil unleashed by the election of the progressive Mikhail Gorbachev and his policies. Economically, Conservative policies did not properly address the financial problems the nation faced at the time, and may have in fact made them worse. Although Reaganomics did provide a temporary boost, the deregulation it entailed made this progress unstable. New Federalism, the process of moving programs from the federal to state level, resulted in many states and towns coming close to bankruptcy, rather than prospering. In a final display of failure, the nation collapsed back into recession in the early 1990s. In terms of social policy, the conservatives were only partially effective in meeting their goals. Roe v. Wade was limited, but not overturned by the decade's end. Social programs were cut, but it is important to note that social welfare spending increased $220 billion between 1980 and 1988. Affirmative Action was weakened by 1980s conservative policies, as they had desired.
Bias- The writer has a liberal bias. He/she claims that conservative policies drove the country back into recession by creating unstable growth. They also claim that Mikhail Gorbachev's policies did more to end the Soviet Union than Ronald Reagan's did.
(for the previous four)
our text.
en.wikipedia.org/wiki/James_G._Watt
en.wikipedia.org/wiki/Just_Say_No
en.wikipedia.org/wiki/Party_leaders_of_the_United_States_Senate
en.wikipedia.org/wiki/Tip_O%27Neill
en.wikipedia.org/wiki/History_of_the_Soviet_Union_(1985-1991)
http://www.nytimes.com/books/01/03/11/reviews/010311.11cuomot.html
Culture and DemographicsDemographicsIn 1981, there were 91 million households in the United States. 72% of these were family households, though only 57% of households were inhabited by a married couple. By 1897, there were 2.3 million couples living together without being married. In 1981 there were 2,422,000 marriages and 1,213,000 divorces, setting a record in both cases. By 1985 the marriage rate had risen 3% while the divorce rate had fallen 5%, though in 1985, 21% of all married adults had been married twice or more. In the South, 36% of brides were teenagers, compared to 18% in the north, and 75% of marriages took place in a religious setting.
There were 3,756,000 babies born in 1986. This showed a continuing decline in the birth rate following the baby boom. However, in 1984, there were 1.5 million abortions, 80% of which were for unwed mothers. Of the unwed mothers in the United States, the majority were black, with 70% of unwed mothers between 30-49 being African American. The number of single Hispanic mothers dropped from 24% in 1980 to 1.9% by the end of the decade. In 1987, a year where there were 63,542,000 children under the age of 18 in the United States, 42% of white children and 86% of black children lived with a single parent.
In 1987, the median family income was $30,853, triple the median from 1970, though if you adjusted for inflation it was only a 7% increase. 23% of Americans made over $50,000, 20% made between $35-50,000, and 17.5% made between $25-35,000. However, 4.4% made under $5,000, while 7.3% made between $5-10,000. A family making $86,000 found itself in the highest 5% of the population. The median family income for whites in 1987 was $32,274 and for blacks was $18,098, just over half that of the white median. In 1985, 14% of the American people (about 33 million) lived below the poverty line ($10,989 for a family of four.) Two-thirds of them were white. The majority lived in rural areas. Luckily for individuals, less than 3% were poor for 8 or more years. In 1985, over 60% of Americans received an hourly wage as opposed to a salary, with the median for men at $7.45 and for woman was $5.26. Half of a percent of Americans made over 280,000 a year, 30% of them in banking, real estate or insurance. 18 million Americans(20% of the workforce) were employed by the government, 2.9 of them for the federal government. The postal service alone employed 750,000 people.
In 1987, 121 million Americans were either working or searching for a job. This was approximately 76% of the men and 56% of the women in the country. In 1985, the unemployment was at 6.1%, and the largest group looking for work was black teenagers. There were 2 million soldiers on active duty and over 1 million civilians employed by the military. 10% of the armed forces were female. Despite the number of Americans in the workforce, only 17 million Americans were in unions by 1985, down from 21 million in 1980. In the US Senate, there were 2 woman, but no blacks. In the House, there were approximately 20 of both, a House that had 251 lawyers in a group of 434 people. Job satisfaction in the United States was up to 88%, but only 40% expected to maintain their jobs for more than five years, but they did not believe finding a new job would be difficult. The top five employers were General Motors, Sears, IBM, Ford Motor Company, and AT&T. Of these companies, one has shrunk(IBM), two are quickly folding in our current financial crisis(GM and Ford) and one has outsourced many of its jobs(AT&T). Not a very good track record. Over 50% of Americans were in white collar jobs,28% were in blue collar jobs, 13% had service jobs, 4% were in agriculture and 8% were self-employed.
Bilbliography:
http://eightiesclub.tripod.com/id44.htmhttp://kclibrary.lonestar.edu/decade80.htmlBias Analysis:
Family:
There is no bias unless you look at the concentration on the statistics of broken families, showing the author of the essay is concerned with these issues.
Work:
This essay is blatantly against not only big business, but against outsourcing and possibly globalization due to his attack on the big businesses of the 80's.
Money:
The author shows his support for the alleviation of poverty due to the positive view he has on the fact that most of the individuals below the poverty line rose back up in a few years.
Economics-Reaganomics
-Recession
-International Monetary Fund
-Tax Reform of 1986 (Leslie & the Whale)
-Black Monday (Leslie& the Whale)
-S&L Bailout
-Economic Recovery Tax Act of 1981
-Trade Deficit
Reaganomics
Reaganomics was President Reagans attempt at trying to better the deteriorating American economy. even since the late 70s and early 80s, Americas economy had suffered from rising inflation and a rising unemployment rate. To attempt to control this and keep the American economy going, Reagan proposed Reaganomics. The basic four steps of this were to reduce government spending, reduce income and capital gain tax rates, reduce government regulation of the economy, and to control the money supply to reduce inflation. Reagan took this approach to try and cut down on domestic spending. this was a very different tactic than the previous presidents in an attempt to control the countrys economy. two main ideas of Reaganomics came from Reagan's campaign promises. These were to lower taxes and have a smaller government, like what Thomas Jefferson had hoped for. Reagan reduced income tax rates, with the largest tax cuts on the highest incomes. this would have an almost trickle down effect. benefiting the rich or wealthier would cause them to spend more, and this in turn would trickle down into the middle, then lower class. However, in a time of roller coaster inflation, this would inevitably raise deficit spending to its highest level since World War II. As a result, many debates on the issue of whether or not on these economic schemes actually worked, and if they came from the free market. on the other hand, successful results would have been more job opportunities, lower taxes (which actually resulted in higher government revenue), greater production of goods, and greater prosperity.
Recession
The recession of the early 1980s was the worst economic recession since the Great Depression up until that time period. It began in July 1981 and ended in November 1982. The main cause of the recession was a monetary policy that contradicted rules and regulations established by the Federal Reserve System to control high inflation. The recession was the most severe and had the most significant impact in terms of economic policy of the post-World War II recessions. In 1979 the economy was growing but at a slow rate; about $30,000,000,000 per quarter. Then in the latter half of 1980 the GDP tumbled about $5,000,000,000 and then fell again another $9,000,000,000. this tumbling of GDP continued up until 1982. banks were failing left and right, much like the Great Depression and even today. The FDIC (Federal Deposit Insurance Corporation) spent about $870 million to purchase bad loans in an effort to keep various banks afloat, which just ended in more banks failing. Also the savings and loan crisis of the 1980s was another contribution to the recession during this time. This was the failure of 747 savings and loan associations (thrifts and bonds) in the United States. The total cost of this crisis is around $160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government. Or, more accurately U.S. taxpayer giving the government money to pay these off. This would actually lead to the large budget deficits of the 1990s.
International Monetary Fund
The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the policies of the countries involved, but more specifically on exchange rates and the balance of payments. It was an organization that was formed to solidify international exchange rates and smooth the progress of development in countries as well as between countries. The IMF is an international lender as a last resort. Its headquarters are located in Washington, D.C., USA. Countries contribute to a pool of money which can be borrowed from, with intentions of paying the pool back. The IMFs success is often seem as limited. It was created to help stabilize the global economy, but ever since 1980 critics claim over 100 of the IMFs members have witnessed a banking collapse that they claim have reduced GDP by four percent or more, all due to the IMF. The IMF works in three main ways. One way is surveillance of a countries economy that involves the monitoring of economic and financial developments. the IMF also provides policy use advice, which is aimed especially at crisis prevention. The IMF also lends to countries that have payback difficulties, and tries to provide temporary financial aid and support that is aimed at correcting the underlying problems; the IMF works almost like an international bank that gives out loans, with payback plans according to the specific countries economic situation, problems with credit, etc. Thirdly, the IMF provides countries with technical assistance and training in what the IMF feel the country needs help in, many of which the IMF specializes in.
Tax Reform of 1986
The Tax Reform Act of 1986 was one of the more effective, useful and successful actions taken by the Reagan Administration. It was passed by a Democratic House and Republican Senate. It was notably one of the most important pieces of tax legislation since WWII. It sought to make everything even for everyone getting rid of reasons not to pay taxes (also called tax shelters), lowering corporate tax rates, and eradicating special treatment for capital gains. Thus, capital gains, and earned and unearned incomes were all taxed at the same rate. Subsequently, it brought the average marginal tax rates on the work force and capital income closer together. With the Tax Reform Act of 1986, Reagan and Congress sought to broaden the tax base and reduce tax favoritism. In 1983, Democrats Bill Bradley and Dick Gephardt offered a proposal broaden the tax base. In 1984 Reagan had the Treasury Department produce its own plan. The plan that was conceived was to clean up the tax base by decreasing tax loopholes, preferences, and exceptions. This would in effect raise the effective tax on activities that were formerly favored by the code. Economists from almost everywhere favored this cleaning up of the tax code, since tax preferences and exceptions warp economic decisions. The ultimate effect of the Tax Reform of 1986 were tax cuts, broadening the tax base, simplifying tax laws, repealing investment taxes, encouraging IRA deductions, and deducting banks for bad credit.
Black Monday Up until this point, the stock market crash of 1987 was the largest in history. On Monday, October 19, 1987, after six weeks of falling prices, stock markets around the world crashed. The crash started in Asia, and worked its way west, reaching the United States after much damage to the economy had already been done. There are several different potential causes of this crash. One explanation is the use of program trading. Program trading allowed the trade of stock by the millisecond. With the increase of the usage of computers, the use of this tactic grew. Program trading was said to be a cause of this crash because due to the speed of stock trade, many stocks were sold without the knowledge of the falling market. Another cause of Black Monday was the difference of the monetary policy among France, Germany, Italy, Japan, the United States, the United Kingdom, and Canada, as well as budget deficits of American families. A major effect of this crash was the lack of investors buying stock. This was because people were afraid of investing their money in the stock market and then losing it. The crash was also a sign of things to come, such as the economic recession in the early 1990's.
Throughout five days in October of 1987 the stock market fell in the greatest crash in history on Wall Street. Before this crash the U.S. dollar had been experiencing a decline in world value. U.S. goods were becoming less needed in other countries because those countries were facing debt and struggle, which in turn lead to trouble for the economy of the United States, causing businesses to struggle. Prior to the crash, investors were worried because of the declining value of the dollar and the rising interest rates. This panic caused some volatility in the market. The trade and budget deficits of the United States were also believed to have played an important role in this crash. The market rebounded to a large extent soon after the crash of the stock market and made some impressive gains.
S&L Bailout In the 1980's, many people began putting their money in places besides the bank, that had high interest levels, so as to make more money. Banks, savings, and loans were now getting less and less business. During the S&L Crisis of the 1980's, seven hundred and forty seven savings and loans associations were put out of business. There were several other causes of the crisis, such as the Tax Reform Act of 1986, de-regulation, and the end of inflation. The Tax Act eventually caused a slowing down of home purchases, which meant there were less people in need of loans. It also lead to the drop of real estate values. The stock market was also dropping in value during this time, which led to the lowering of initial investment rates. Even banks who were not directly part of this crisis failed during the 1980s. For instance, over 1,600 banks that were insured by FDIC were out of business or received financial help. Then in 1989, a bailout plan called the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). The act gave fifty billion dollars to closed Savings and Loans associations. The final amount of money needed to fix this economic issue is estimated at around $200,000 million.
The savings and loans crisis was preceded by a large amount of legislation and other regulations that could have greatly caused this crisis. Money market accounts gained popularity in the 1980's. As a result, banks looked to the government to remove restrictions on these saving accounts. The government met this request through their passage of the Garn-St.Germain Depository Institutions Act which allowed an increase in interest rates, create new types of loans, and alter the restrictions on the loan to value ratios.
Economic Recovery Tax Act of 1981 The Economic Recovery Tax Act of 1981 is also known as ERTA, or the Kemp-Roth Tax Cut. It was a federal law signed by President Reagan on August 13, 1981. The act had many points that its creation was trying to achieve. It wanted to spur economic growth by reducing tax rates, well as create incentives for business, lower the marriage penalty tax, as well as expand the Individual Retirement Arrangements to all working people. The IRAS was used to aid people with their personal monetary savings. This act also eventually reduced income tax rates in America. This tax act had two main supporters, Jack Kemp, and Senator William Roth. They both advocated for larger tax cuts, but eventually compromised with Congress. In the end, this tax reduced the individual tax rate by 23%. It also reduced corporate tax gains by 20%, as well as created the All Savers Certificate, which was a one year savings certificate that was free of federal taxes. ERTA also allowed for an unlimited matiral deduction on a property transfer provided by a will. This law eventually increased the federal budget deficit of the United States.
Trade DeficitThe United States had been decreasing their trading system in the years before the trade deficit so greatly impacted the economy. The trade deficit was worsened by a decrease in the value of the dollar which diminished trade further. The rising interest rate of the 1980's played a large role in increasing the trade deficit during these years. It was also spurred by the decrease in foreign demand for the industrial goods the United States produced because of their own economic troubles.
Foreign PolicyFOREIGN POLICY
Goal of Soviet Affairs/Comunism: Rachel
-Soviet Union and Afghanastan
- Fall of Communism
-Challenging Soviets/communism
-Military buildup (Nuclear Weapons) Diplomatic negotiations with Gorbachev INF[ SDI]
Goal: * Rise of Terrorism: Jessica
-Marine Barracks Bombing
-Iran Iraq War
-Persian Gulf War
-Operation Urgent Fury (Invasion of Grenada) [ This was actually part of a put down of right wing rebels, so I'll take it.]
Goal- Right Wing Rebel Increase: Pamela
-El Salvador
-Iran-Contra Affair
-Operation Urgent Fury (Invasion of Grenada) Soviet Affairs/Communism Soviet invasion of and withdrawal from Afghanistan 1980 - 1988 - The soviet invasion of Afghanistan caused America to become more directly involved in the containment of the Soviet Union. During these years the U.S. sent hundreds of millions of dollars worth of guns and food to Afghanistan to aid the mujahidin and the refugees there. America encouraged rebel revolts against the Soviets and promoted standing up to communism as a result of the domino theory (that if one nation falls to communism, the nations around it will begin to fall also). The Soviet invasion was a threat to foreign policy, because it was going against Americas policy of containment and the U.S. wanted all nations to be free (as said in Jimmy Carters Address to the Nation). Also the Soviet Union was a threat, because the U.S. did not want communism to spread throughout the Middle East because of their oil resources. During this invasion the U.S. introduced a new shoulder-launched anti-aircraft missiles in 1987. This new weapon helped the Mujahidin defeat the soviet forces and was used later during the war. Ronald Reagan also talks about in his Radio Address to the Nation on the Soviet Occupation of Afghanistan 1985 that the U.S. would not tolerate soviet occupation, and demand them to remove their forces so that Afghanistan can set up its own government (of democracy). Historical analysis of bias and perspective included in the inferences of your brief essays: The perspective of this essay is of the American government, showing their opinions on sovietoccupation and the spread of communism. http://nhs.needham.k12.ma.us/cur/baker_00/2002-p4/baker_p4_12-01_mj_sz/#effects http://www.reagan.utexas.edu/archives/speeches/1985/122885a.htm http://www.presidency.ucsb.edu/ws/index.php?pid=32911 The fall of the Soviet Union - The Soviet Union was having economic and social domestic problems which caused the end of the soviet union. The government was too rooted into the economy to pull out now, and they could not save it from collapsing. They tried some tactics of new freedoms, but this did not work. Even in 1989, for the first time in 70 years, a free election had happened in the union in order to give people the assurance that their government was trying to change. Many revolutions started up throughout the nation also, and Gorbachev decided to not use military force to break them down, which further eroded the country. On Christmas day 1991, the Soviet Union announced that they were no longer a power, and were instead an independent nation. America now watched as another great power began to crumble. Americas foreign policy of containment was now over and was no longer needed. They still kept a careful eye on Russian affairs but now the tension had winded down a bit and were able to focus on domestic affairs. Historical analysis of bias and perspective included in the inferences of your brief essays: Most of this essay is in the perspective of the soviets and their reaction as they fell from a great power to an independant nation. http://www.essortment.com/all/fallofthesovi_rkcm.htm Rise of Terrorism!Marine Barracks Bombing:
The Beirut barracks bombing was a tragedy that took place on October 23, 1983 during the Lebanese Civil War. United States Marines were stationed in Beirut as peacekeepers part of the Multinational Force after the Israeli invasion of Lebanon in 1982 and the massacre by the Phalange militia of Palestinians in the Sabra and Shatila refugee camps on the outskirts of the city. Local citizens, especially the Shiites that lived in the area, however, did not view the force as a peacekeeping one, but a dangerous faction in the war. The American soldiers were hated as well as distrusted by most of the people living in Beirut, and their presence intensified the ongoing fights between Lebanese Christians and Muslims. The bombing itself was done by a suicide bomber, most likely from a group called Islamic Jihad, around 6:30 in the morning. The driver drove a yellow truck to the Beirut International Airport (where the marines were stationed) and then crashed through a barbed wire fence around a parking lot, passed between two sentry posts, crashed through a gate and drove into the lobby of the Marine headquarters. Before the sentries could run over to the bomber, he exploded 12,000 pounds of TNT in the barracks and collapsed the four-story cinder-block building. The building crushed and killed about 300 soldiers, 241 of whom were United States soldiers. Four months after the bombing, President Regan removed the marines from Lebanon.
Iran-Iraq War:
The Iran-Iraq War was a war between the armed forces of Iraq and Iran from September 1980 to August 1988. It was the effect of a long history of border disputes and fears of Shia rebellion among Iraq's long suppressed Shia majority influenced by the Iranian Revolution (Islamic Revolution). Iraq had hoped to take advantage of the rebellious situation in Iran and attacked on September 22, 1980 without any formal warning, though there had been hostilities and events before then between the two countries. The invasion was not particularly successful, and all the progress that had been made was lost in 1982 when the Iraqi soldiers were pushed out of Iran. For the rest of the war, the roles were reversed and Iran became the offensive country. The United States initially was neutral about the entire Iran-Iraq War, with some minor exceptions. They only got involved when the threat of Soviet interference was apparent. However, when the Iraq army started to win some battles, the United States began to back Iraq fully in the war. They normalized relations with their government, supplied Iraq with several billions dollars in economic aid, and sent intelligence and training experts as well as weapons.
Persian Gulf War:
The Persian Gulf War, which is also known as the First Gulf War, was a military conflict between Iraq and a coalition of 34 countries including the United Nations. It lasted from August 2, 1990 to February 28, 1991. Most of the military forces fighting in the war were from either the United States or the United Kingdom, despite the fact that 34 countries were involved. An air campaign was launched as well as a groud one, with the air compaign being very effective. The air strikes were codenamed Operation Desert Storm with more than 1,000 sorties launched per day, and the ground campaign was codenamed Operation Desert Sabre. Both the aerial and ground combat were confined to Iraq, Kuwait, and bordering areas of Saudi Arabia in order to protect them from invasion. The sending of troops to Saudi Arabia for protection from Iraq was known as Operation Desert Shield. Iraq ended up launching missiles against military targets in Saudi Arabia, and at civilian centers in Israel in order to have Israel retaliate. In total, 379 United States soldiers were killed, 776 were wounded, and countless others suffered from Gulf War Syndrome. Gulf War Syndrome has a wide range of symptoms, from something as simple as fatigue, to symptoms including immune system disorders and birth defects.
Bibliography
http://en.wikipedia.org/wiki/1983_Beirut_barracks_bombinghttp://www.answers.com/topic/marine-barracks-bombing-lebanonhttp://en.wikipedia.org/wiki/Iran%E2%80%93Iraq_Warhttp://en.wikipedia.org/wiki/U.S._support_for_Iraq_during_the_Iran-Iraq_warhttp://en.wikipedia.org/wiki/Gulf_Warhttp://www.infoplease.com/ipa/A0001293.html Right Wing Rebel Increase
Operation Urgent Fury (Invasion of Grenada)-
Sources: Remarks on Central America and El Salvador at the Annual Meeting of the National Association of Manufacturers, March 10, 1983 http://www.reagan.utexas.edu/archives/speeches/1983/31083a.htm
Before this operation was arranged Reagan was already concerned with Central America. As he said during the Annual Meeting of the National Association of Manufacturers in March of 1983, Those Soviet theorists noticed what we failed to notice: that the Caribbean Sea and Central America constitute this nation's fourth border. The trouble with Grenada began when Maurice Bishop, who followed Fidel Castro, overthrew their government after staging a military coup. He enlisted help from Cuba to build an airport in Grenada that appeared to be suitable for military aircraft, and also built up his army. Yet Bishop seemed to want to establish a peaceful relationship with the U.S. Unfortunately he was seized by a small group of his own militia and then shot days later. This left Grenada without a government. The reason the US was involved: at least 1,000 US citizens, 800 of them George University Medical School students, were on Grenada. Reagan first ordered a flotilla of ships passing nearby to circle around in case an evacuation of those citizens was needed. The actual operation is named for Reagans next move where the US joined the Organization of Eastern Caribbean States on the mission to invade Grenada in 1983. The mission was to take control of the two airports and the campus where most of the students were. In doing so it was discovered that this island was being turned into a Soviet-Cuban colony for military uses. A complete base with weapons and communication equipment was found, enough to supply thousands of terrorists.
Historical analysis of bias and perspective: The bias and perspective shown in this essay are based off of the perspective that there was really trouble in Grenada. Even more so that the trouble was caused under the influence of the Soviet Union and Cuba. The bias deals with the feeling that Bishop began the trouble, even though he was trying to extend peace to the US. The perspective is from the point of view of one who believed that the trouble with Grenada didnt begin until after Bishop took control.
Iran-Contra Affair
Sources: http://en.wikipedia.org/wiki/1980s#International_issues , Lecture outline Email (Chs 30 and 31), PDF 39 1970s and 1980s,
"Iran-contra affair." The Columbia Electronic Encyclopedia.
© 1994, 2000-2006, on Infoplease.
© 20002007 Pearson Education, publishing as Infoplease.
31 Mar. 2009 .
The Iran-contra affair was the biggest scandal of the Reagan administration because of the lies involved in it. Its root lies in the affairs of the Sandanistas who were socialist revolutionaries who made practice condemning capitalism and U.S policies in Latin America, supported by Cuba. Reagan opposed the Sandanistas who were in control of Nicaragua, accusing them of helping the Soviets and Cuba gain a hand in Central America. In opposition Reagan supported the contra rebels who were conducting a guerrilla war against this government. In support Reagain provided funds to the rebels by allowing the sale of arms through the contra to Iran. Reagan had a second agenda in allowing the arms to be sold to Iran because he believed it would convince the Iranian government to secure the release of American hostages held in Lebanon by pro-Iranian groups. Oliver North actual dictated the program that included these two things, in spite of a worldwide embargo and the lack of support from Congress, because he two believed it would help result in the release of these hostages as well as helping fight communism in Nicaragua. When the affair came to light Lawrence E. Walsh was named as special prosecutor to investigate the affair. Reagan and Bush, Reagans vice President at the time, both claimed un-involvement, saying that they knew no details of the affair and no evidence was found to discredit them either.
Historical analysis of bias and perspective: The bias and perspective shown in this inference are the reasons for why this affair was made into such a large scandal. It is stated that it was such a large scandal because of the lies involved, but that is an opinion, as is the other reason, which was that the people were concerned with congressional oversight of foreign affairs and the limits of the executive branch. The beliefs of both Reagan and North are also opinions and so are perspectives of why they carried out these actions.
El Salvador
Sources: http://en.wikipedia.org/wiki/1980s#International_issues , http://en.wikipedia.org/wiki/Foreign_policy_of_the_Reagan_administration, http://www.morris.umn.edu/academic/anthropology/chollett/anth3601/elsalvador.html, http://www.pbs.org/itvs/enemiesofwar/elsalvador2.html,
The US involvement in El Salvador revolved around the US support of right wing rebels in El Salvador as Reagan made this support a main part of his foreign policy. This was because Reagan felt that the military government of El Salvador was a potential barrier against communism. Reagans administration in turn increased military and economic aid to El Salvador, geared towards the Salvadoran Military, as Congress tried to make aid contingent on human rights progress there. The biggest controversy over the El Salvador issue lay in Reagan vetoing a bill for the human-rights stipulation to aid for El Salvador, ignoring the El Mozote massacre, a human rights violation in itself. This massacre occurred in December of 1981 and involved 1000 civilian deaths by the U.S trained Salvadoran paramilitaries. This was a big problem in the eyes of American citizens because as more atrocities and murders reached the ears of the American government. The speaker of the house, Tom Foley, made a special task force manned by Joe Moakley of MA to investigate the conditions in El Salvador. A massive cover-up was discovered, that masked the fact that certain people in levels of the US government had known about the situation in El Salvador. This situation was that there were deep problems with the Salvadoran armed forces as well as armed forced being responsible for the murders of Jesuits.
Historical analysis of bias and perspective: The bias and perspective here takes light in the assumption of what the biggest controversies were and what the main problem was in the eyes of the American citizens. Also the perspective of just how much involvement the US really had in El Salvador is important.