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1981-1989 Historical Era: Political : Reagan was part of a new conservative branch of the Republican Party. a smaller government less government benefits to the poor lower taxes a strong military. Opposite of the Democratic Party dominated by social progressives more programs and benefits to be paid for by taxes Global Politics: This was during the Cold War. The United States was competing for influence with the U.S.S.R. a race for military power economic and political influence over other countries There was a fear of nuclear war Economic: The American economy was weak as it was starting to be exposed to competition from the global economy. U.S. factories were closing and laying off workers. Gas prices were high inflation had driven up lending costs growth was slow Social issues: Democrats had championed many minority and women’s rights during the 1970’s. Many of the white middle class felt forgotten by leaders. Women’s liberation, cultural identity, gay rights were all still controversial. Abortion had been legalized just a few years before and made many Christian voters upset. Issues and event Economic Plan Presidential Role Details Outcome Watchdog of the Economy “Reaganonmics” Lowered taxes Lower welfare benefits More military spending Boosted the economy Increased business investment BUT… Recession and unemployment Invasion of Grenada Funding the Contras Commander in Chief Head of State Challenger Disaster INF treaty Foreign Policy Maker Sent Marine force to take over a small island nation in the Caribbean Sent arms and money to a rebel group in Nicaragua Space Shuttle “Challenger” explodes during lift-off. Kills all 7 astronauts including female teacher Millions of Americans are watching on live TV Reagan’s gives speech that evening on TV Treaty with USSR that reduces the number of nuclear weapons by 4%. Boost to the national spirit Military success Blow to communism and Russians BUT… Illegal to aide rebels Reagan’s speech morns the death of the astronauts but also makes them into heroes. His speech strengthens faith in the U.S.A. during a time of trouble. This is the first treaty to reduce the stockpile both nations have built over the last 30 years. This would signal the beginning of the end of the Cold War