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Energy Crisis: prices for oil increased during time when oil was greatly needed inflationCarter proposed conservationismThree Mile Island:Nuclear meltdown in PA sparked fear in public (worried w/ rapid scientific advancement)oAutomobile Industry: Japanese car companies (better/cheaper/fuel-efficient) expanded into the US and hurt American car companiesoInflation: Federal Reserve increased interest rateslong term end to inflationoIran Hostage Crisis 1979: US support of Shah since 1950s, Shah fled Iran to US dying of cancer Ayatollah Khomeinistarted revolution to overthrow governmentIranian radical students invaded US Embassy and took 66 US hostages (444 days)held hostages until final minutes of Carter’s presidencyo1980s (Chapter 19)•Liberals: favored government intervention to help needoGovernment should play role in improving lives of AmericansoValued social programs to help the poor, unemployed, and elderlyoProtected rights of minorities/womenoGovernment regulation of industryoFavored international organizations like the UN•Conservatives: favored free market, private organizations, and individuals to help needyoLarge central government endangers economic growth/individual choiceoLiberal policies inflation/wasteful spending oCriticized excessive funding of social programsoReduce taxes/of regulation of industry to promote economic growthoNeoconservatives/traditionalists warned about dangers of abandoning traditionoExtremely Anti-communism (Questioned Détente/SALT II)•Moral Majority: Reverend Jerry Falwell 1979; political organization worked to fulfill religious goals/return to traditional family; opposed Engel v. Vitale (forbade religious teaching in school) and Roe v. Wade (legalized abortion); condemned = Rights Amendment/Homosexuality•1980 Election:oRonald Reagan v. Jimmy Cartero“Are you better off than you were four years ago” – quote Reagan used to cast Carter in negative lightoGreatly influenced by final debate; Reagan showed his great communication skillsoWon 50.6% popular vote but 90.9% of electoral voteoAlthough Democrats had control of House, Republicans regained control of Senate for first time since 1955 and conservatism became more popular again because people blamed liberals for current problems such as stagflation (New Right)•Ronald Reagan: Very charismatic, good public speaker, used humor
•Reaganomics: oSupply-side economics: assume that if taxes are reduced people will work more and have more money to spend, causing the economy to grow (collect more taxes)Economic Recovery Act of 1981 – reduced taxes 25% over three years (richest got largest cuts)oDeregulation: reduction of government role in economy by removing gov from control of industry (airline, telecommunications, banking, etc.)oRecession 1980-82: unemployment rose to 10%, affected blue-collar workers and farmers lost farms due to foreign competitionoArms Race: Reagan’s philosophy to beat Soviets was to outspend/intimidate them national debt –