Pre-Spring Break Notes of Fun

The 1980 Election Year Heats Up....

• President Carter authorized a military rescue of the American hostages in Tehran.
• FAILURE.
• Navy ships were sent to the coast. Helicopters were then sent from the ships to fly over the desert and grab the hostages. Little did they know that when a helicopter flies over a sandy area, all of the sand whirls upward and clogs the engine....
• The military was at fault for the failure, not Carter this time.
• 8 Americans died in the attempt and none of the rescuers reached Tehran.

Carter v. Reagan

• Democrats came close to not nominating Carter for a second term.
• Republican Ronald Reagan narrowly wins the popular vote but won an overwhelming electoral college vote.

Reagan's "New Morning in America" Called For...

• Tax reductions
• Opposition to abortion
• Support of prayer in school
• Endorsement of traditional family values

Conservative religious figures like Jerry Falwell and Pat Robertson threw their support to Reagan.

"Supply-Side Economics"

• A theory which argued that large tax cuts or businesses and the wealthy would lead to investment and new jobs.
• Congress approves Reagan's request for the tax cuts which favored wealthy people and businesses.
• The Federal Reserve Board kept interest rates high to drive down inflation.

The Results

• Nasty economic recession in 1981 and 1982.
• Worst since Great Depression.
• By late 1982, economy rebounded and entered period of non-inflationary growth.
• Unemployment however, did not drop as expected.

Sounds more like "Reaganomics" to me...

• Reagan didn't follow true Supply-Side Economics.
• Did not match the tax cuts with the budget reductions.
• Reagan rolled up a strange record of deficits and spending.
• The deficits tripled to $300 billion.
• To cover the debt, the U.S. borrowed money from foreign investors and piled up the highest foreign debt in the world.

Farmers

• Many farmers lost their farms to mortgage foreclosures.
• Musicians like Willie Nelson held charity concerts to help them out because the crop prices fell and now carried high-interest loans.

Many jobs created during this time ere low paying, non-unionized, service sector jobs with no fringe benefits.
The gap between the rich and poor grew wider.

• *Remember to read the Spring Break Assignment posted at School Fusion! Have a great break*