CONSERVATISM AND THE RISE OF RONALD REAGAN Setting ● economic, social, and political trends of the previous two decades = mood of disillusionment ● crime and racial polarization in many urban centers, ● challenges to traditional values, ● the economic downturn and inflation of the Carter years – . ● ● renewed suspicion of government and its ability to deal effectively with the country's social and political problems. Many Americans were receptive to their message of limited government, strong national defense, and the protection of traditional values. Sources of Rise of Conservatism ● ● Fundamentalist Christians – Hope to return religion to central place in American life – Concerned about crime and sexual immorality Abortion Debate – ● Libertarian Conservatives – ● 1973 Rose v. Wade Government is untrustworthy Economic Monetarists (Milton Friedman) – Economy should not be regulated much by gov. Jerry Falwell ● ● ● early 1980s Organization: “Moral Majority” Baptist minister, Pat Robertson ● ● Organization: Christian Coalition by the 1990s was a significant force in Republican Party. William F. Buckley ● Conservative ● Journalist ● “intellectual elite” of the Conservative movement George Will ● Journalist ● Conservative ● Columnist The Heritage Foundation ● ● ● American conservative think tank based in Washington, D.C. mission is to "formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense" Ronald Reagan ● Actor ● Gov. of Illinois ● Optimist ● Conservative Libertarians, Evangelicals, and citizen's behavior • Libertarians Believe • Government should make few or no rules for personal behavior except as needed to protect it • “The right to swing your arms ends where my nose begins” • Many Evangelicals Believe • Christianity is the “true” religion, the Bible is the error-less word of God. • The United States was chosen by God to protect freedom and Godliness • If we turn away from God we will fail. • Government should make laws restricting immoral behavior. Modern American Conservatives believe in... ● free enterprise ● limited government ● individual freedom ● traditional American values ● strong national defense\ NOTE: Liberals and Progressives believe much the same things, only they define the terms differently and disagree about the best methods to achieve the goals. Conservative Revolt ● ● ● ● ● ● reduce size of federal gov't cut taxes (increase military spending) deregulation of economy return to traditional values balance federal budget Election of 1980 ● Turning point ● “new Right” ↓role of gov. in economy ● ↓funding for social programs ● ↑Christian values ● – “Moral Majority” “Reagan Revolution” Keynesian Economics ● During depression, gov' borrows money to transfer to public – Increase demand – create jobs – Gov. goes into debt for now – When good times return, gov. payoff debt Supply Side Economics ● ● ● Reverse of Keynes Spur business growth by increasing $$$ businesses have, increase $$$ pubic has – Business – make jobs – People – save & spend more, thus stimulate demand – Low tax – Minimal regulation “Trickle Down” Economics didn't work – cut in tax did not increase gov. revenue and inequality increased. Some good news... ● ● 1981 recession hurt (>10% unemp.) but... 1982 recovery – Both unemployment and inflation <10% Tax Rates 1979-1990 Compare Debate: Recovery 1982 ● Some economists believe the US economy rebounded so strongly after the 1982 Reagan Recession because of massive military spending – It's a form of stimulus – Isn't this Keynesian? – Did the Depression end after WW 2 ● – Massive gov spending on military put people to work Is this what Eisenhower warned us about? Debate: Recovery 1982 ● Others credit deregulation, tax cuts, more laissezfaire attitude of government spurs business growth