The1980s Reagan 2nd Term

The1980s Reagan 2nd Term

• 1.
  Second Term-USSR Changesattitudes w/ USSR Why? Mikhail Gorbachev Andropov and Chernenko died within 18 months Gorby seen as a savior in USSR Economic Reforms Glasnost-Openness Allow freedom of press & to dissent Perestroika-Economic Change Calls for more individual involvement, choice, & private ownership
• 2.
  Dealings w/ USSRGeneva (1985) Reagan and Gorby could not agree on passage of SALT II or what to do with Star Wars Relations between the 2 improved Reagan said that he would give up SDI technology to USSR
• 3.
  Dealings w/ USSRReyjkavik (October 1986) Gorby called for an end of all Nukes by 2000 Reagan had to give up SDI Reagan would not go through with it Laid the Foundation for a successful agreement at Washington
• 4.
  Reagan-Berlin June 12,1987 Reagan gave a speech at the Brandenburg Gate asking Gorbachev to “Tear Down That Wall.”
• 5.
  Reagan & GorbyWashington (December 1987)-INF Treaty Eliminated all US/USSR intermediate missiles through on-site inspections Removed all missiles from Europe 4% overall reduction in nuclear arsenals An entire class was dismantled US 846 dismantled, USSR 1848 dismantled April 1988-USSR withdrew from Afghanistan US support to Mujhadeen had been successful
• 6.
  Savings and LoanScandal Decreased Federal Regulation Led to illegal insider trading & mergers Reagan wanted to remove restrictions on banks so that it would create more competition Laissez-Faire Government Would keep FDIC insurance (established by FDR) Real Estate markets collapsed Banks made risky loans and could not pay back money to investors Cost Taxpayers $160 Billion
• 7.
  Stock Market Crash-October19, 1987 Black Monday The Market fell by 508 points in 1 day. Investors lost over $1 Trillion Largest 1 day decline in US history Main cause: Loss of confidence in the market and worldwide concern over inflation
• 8.
  National Debt 1787-1981US Presidents accumulated $1.5 trillion in debt Reagan (1981-1989) Added $2 Trillion to debt Deficits of $200 Billion Why is that important? Guaranteed that future Americans will have to work harder than their parents Median Income fell, line between richer and poorer began to grow US Budget (2008) Entitlements Defense Interest on the Debt
• 9.
  Iran Contra Affair1979-Nicaragua The Sandanistas (Communists) overthrew the Somoza government US afraid of another Vietnam Nov. 1981 Reagan ordered $19 million to train contras (CIA) Somoza’s former army/police Congress found out, Boland Amendment Congress said that the CIA could not get involved anymore! Reagan told Col. Oliver North to do whatever you can to help out the Contras!
• 10.
  Iran-Contra Affair Reaganwanted to free hostages held by an Iranian group in Lebanon But also keep the oil flowing from the region! Reagan Quote- “Terrorists are everywhere…” White House sold 526 anti-tank missiles to Israel Israel sent the missiles to Iran Problem: Iran/Iraq war is going on & we are supporting Iraq North overcharges the Iranians by 38%, sends profits to the Contras
• 11.
  Conclusion of IranContra Affair Beirut newspaper-Al Shira, broke the story Reagan’s Dilemma If Reagan admits knowledge Impeachment If Reagan denies knowledge Who’s in control? North took responsibility and said that he was following orders, took 5 th amendment North is charged w/ 3 felonies Obstruction of justice Destroying documents Receiving illegal gratuities