4. Republican dominance and its opposition 1981-92
❖ New directions in economic policy
❖ The Religious rights and its critics
❖ Cultural challenge
❖ Social change
New directions in economic policy
● ‘The Great Communicator’ (public and Congress)
● Inspirational addresses and speeches
● Unemployment was high when he became president
Reagan’s ideas:
● Increasing military spending
● Dismantling the social and welfare programmes (Great Society)
● Reducing taxes
● Reducing government regulation of the economy
(these policies appealed to White middle class Americans)
Reagan became president 1981.
The trade and budget deficit (and Reaganomics)
Reagan new Economic policy ‘Reaganomics’--> the government was in fact the cause of the
economic crisis.
To address this, Regan removed many of the government regulations and reduced taxes,
so many wealthy people could make money easily so that they could reinvest new business
enterprises that would create more jobs for workers.
● Regan gained enough support from Congress, 1981 he signed the Economic
Recovery Tax Act which introduced major tax cuts
The problem with this system was that, cutting the level of tax, it also meant that Reagan
increased government military spending dramatically. Even though he promised to lower
government debt, he increased America’s deficit as he borrowed a lot of money on military
development.
❖ New directions in economic policy
❖ The Religious rights and its critics
❖ Cultural challenge
❖ Social change
New directions in economic policy
● ‘The Great Communicator’ (public and Congress)
● Inspirational addresses and speeches
● Unemployment was high when he became president
Reagan’s ideas:
● Increasing military spending
● Dismantling the social and welfare programmes (Great Society)
● Reducing taxes
● Reducing government regulation of the economy
(these policies appealed to White middle class Americans)
Reagan became president 1981.
The trade and budget deficit (and Reaganomics)
Reagan new Economic policy ‘Reaganomics’--> the government was in fact the cause of the
economic crisis.
To address this, Regan removed many of the government regulations and reduced taxes,
so many wealthy people could make money easily so that they could reinvest new business
enterprises that would create more jobs for workers.
● Regan gained enough support from Congress, 1981 he signed the Economic
Recovery Tax Act which introduced major tax cuts
The problem with this system was that, cutting the level of tax, it also meant that Reagan
increased government military spending dramatically. Even though he promised to lower
government debt, he increased America’s deficit as he borrowed a lot of money on military
development.
