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The American Pageant Chapter 40 Reading GuideVocabularyProposition 13--a s successful California state ballot initiative that capped the state’s real estate tax at 1 percent ofassessed valueBoll weevils--term for conservative southern Democrats who voted increasingly for Republican issues during theCarter and Reagan administrationsSupply-side economics--economic theory that underlay Ronald Reagan’s tax and spending cuts. Contrary toKeynesianism, supply-side theory declared that government policy should aim to increase the supply of goods andservices, rather than the demand for themStrategic Defense Initiative (SDI)--Reagan administration plan announced in 1983 to create a missile-defensesystem over American territory to block a nuclear attackSandinistas--left wing anti-American revolutionaries in Nicaragua who launched a civil war in 1979Contras--anti-Sandinista fighters in the Nicaraguan civil war. The contras were secretly supplied with Americanmilitary aid, paid for with money the United States clandestinely made selling arms to IranGlasnost--meaning “openness,” a cornerstone along with perestroika of Soviet president Mikhail Gorbachev’sreform movement in the USSR in the 1980s. These policies resulted in greater market liberalization, access to theWest, and ultimately the end of communist rulePerestroika--meaning “restructuring,” a cornerstone along with glasnost of Soviet president Mikhail Gorbachev’sreform movement in the USSR in the 1980sIntermediate-Range Nuclear Forces (INF) Treaty--arms limitation agreement settled by Ronald Reagan MikhailGorbachev after several attempts. The treaty banned all intermediate-range nuclear missiles from Europe andmarked a significant thaw in the Cold WarIran-Contra affair--major political scandal of Ronald Reagan’s second term that was revealed in 1986. An illicitarrangement of selling “arms for hostages” with Iran and using money to support the contras in Nicaragua, thescandal deeply damaged Reagan’s credibilityMoral Majority--political action committee founded by evangelical Reverend Jerry Falwell in 1979 to promotetraditional Christian values and oppose feminism, abortion, and gay rightsBlack Monday--October 19, 1987. Date of the largest single-day decline in the Dow Jones Industrial Average untilSeptember 2001. The downturn indicated instability in the booming business culture of the 1980s but did not lead toa serious economic recessionOperation Desert Storm--U.S.-led multicountry military engagement in January and February of 1991 that droveSaddam Hussein’s Iraqi army out of neighboring KuwaitAmericans with Disabilities Act (ADA)--landmark law signed by President George H.W. Bush that prohibiteddiscrimination against people with physical or mental handicaps. It represented a legislative triumph for championsof equal protections to allReading Questions1.How did the demographics of the 1980 Census favor a more conservative Republican party? Who are the“New Right”- what issues do they champion?