Energy Crisis prices for oil increased during time when oil was greatly needed

Energy crisis prices for oil increased during time

This preview shows page 14 - 16 out of 18 pages.

Energy Crisis: prices for oil increased during time when oil was greatly needed inflation Carter proposed conservationism Three Mile Island: Nuclear meltdown in PA sparked fear in public (worried w/ rapid scientific advancement) o Automobile Industry: Japanese car companies (better/cheaper/fuel-efficient) expanded into the US and hurt American car companies o Inflation: Federal Reserve increased interest rates long term end to inflation o Iran Hostage Crisis 1979: US support of Shah since 1950s, Shah fled Iran to US dying of cancer Ayatollah Khomeini started revolution to overthrow government Iranian radical students invaded US Embassy and took 66 US hostages (444 days) held hostages until final minutes of Carter’s presidency o 1980s (Chapter 19) Liberals: favored government intervention to help need o Government should play role in improving lives of Americans o Valued social programs to help the poor, unemployed, and elderly o Protected rights of minorities/women o Government regulation of industry o Favored international organizations like the UN Conservatives: favored free market, private organizations, and individuals to help needy o Large central government endangers economic growth/individual choice o Liberal policies inflation/wasteful spending o Criticized excessive funding of social programs o Reduce taxes/of regulation of industry to promote economic growth o Neoconservatives/traditionalists warned about dangers of abandoning tradition o Extremely 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: o Ronald Reagan v. Jimmy Carter o “Are you better off than you were four years ago” – quote Reagan used to cast Carter in negative light o Greatly influenced by final debate; Reagan showed his great communication skills o Won 50.6% popular vote but 90.9% of electoral vote o Although 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: o Supply-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) o Deregulation: reduction of government role in economy by removing gov from control of industry (airline, telecommunications, banking, etc.) o Recession 1980-82: unemployment rose to 10%, affected blue-collar workers and farmers lost farms due to foreign competition o Arms Race: Reagan’s philosophy to beat Soviets was to outspend/intimidate them national debt –

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture