Reagan Bush Policy

Reagan Bush Policy - RonaldReagan(19801988 DomesticPolicy...

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Ronald Reagan (1980-1988) Domestic Policy Foreign Policy Labor Unions- The Air Traffic Controllers o In the summer of 1981 Reagan fired a  majority of federal air traffic controllers  (members of the PATCO union) when they  went on an illegal strike. Since this union  was one of only two unions to support  Reagan in the prior election, this action  proved to be a political coup. This set limits  for public employee unions, and also  signaled that it was acceptable for  businesses to play hardball with unions,  some of which started shrinking faster as a  proportion of the private sector labor force.  (Public sector unions of teachers, nurses,  and government clerks, expanded.) Deregulation of Industry o Deregulation is the removal of, or lessening  of government regulations restricting an  industry.   o Federal requirements that set maximum  interest rates on savings accounts were  phased out. This eliminated the advantage  previously held by savings banks. o Deregulation practically eliminated the  distinction between commercial and savings  banks. o deregulation which led to high interest rates  that then collapsed. Other causes included  inadequate capital and defrauding  shorthanded government regulatory  agencies (less regulators and inspectors). Drug War o The War   on   Drugs is an initiative  undertaken by the United States to carry out  an "all-out offensive" (as President Nixon  described it) against the prohibited use of  certain legally controlled drugs. Reaganomics o His economic policy of supply-side  economics, popularly known as  Europe o Star Wars Reagan proposed the Strategic Defense Initiative, dubbed  "Star Wars", a space-based missile shield, widely  viewed outside the US as a threat because it would  nullify the Soviets ability to assure their end of  "mutually assured destruction"--it would  theoretically allow the US to execute a first strike  and avoid the resulting Soviet retaliation; the  prospect of losing parity in the arms balance that  underpinned the world strategic situation and Soviet  military power greatly distressed both the leaders  and people of the USSR. o USSR thaw After Mikhail S. Gorbachev became the premier of the  USSR in March 1985 and took a more flexible  approach toward both domestic and foreign affairs,  Reagan softened his anti Soviet stance.  But  despite the Soviets’ assurances that they would  honor the ungratified SALT II agreement, Reagan  argued that they in fact had not adhered to the pact;  as a result, he sought to expand and modernize the  American defense system. o
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This note was uploaded on 08/31/2010 for the course AMER HIST 45213 taught by Professor Platt during the Spring '10 term at Berkeley.

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Reagan Bush Policy - RonaldReagan(19801988 DomesticPolicy...

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