REAGAN-BUSH

PRESIDENT RONALD REAGAN

• 1981-1989; Republican
• Defeated Jimmy Carter by tapping into conservative movement
• Believer in less government, lower taxes, & traditional values
• Called the "Great Communicator"
• Won reelection against Mondale/Ferraro

REAGANOMICS

• Reduced government spending by 10%; made cuts to programs affecting the poor
• Reduced taxes by 25% - basis of SUPPLY-SIDE ECONOMICS [money saved in banks would be re-invested in business = increased productivity = lower prices]
• Deregulated various industries
• Deficit spending causes national debt to double

DEFENSE SPENDING

• 1981-84 defense spending doubles [35% of U.S. budget]
• Strategic Defense Initiative - develop defense system to keep America safe from enemy missiles; called "Star Wars"
• Scares USSR - escalates arms race/Cold War

COMMUNISM STARTS TO UNRAVEL

• 1985 - Mikhail Gorbachev new leader in USSR; works with Reagan to ease Cold War
• Better relations with U.S. would allow decrease in defense spending & prevent economic collapse
• Gorbachev brought democratic (Glasnost) & economic reform (Perestroika) to USSR

FALL OF BERLIN WALL

• 1987: Reagan challenges Gorbachev to tear down Berlin Wall
• 1988 - Gorbachev reduces Soviet troops & allows non-communist parties in East Germany/Satellite nations
• 1989 - Germans repudiate communist government in East Germany & begin tearing down Berlin Wall
• 1990 - Germany is reunified as one nation; holds free elction

COMMUNISM CHALLENGED IN CHINA

• 1980s Economic reform allows some forms of Capitalism
• Students begin to demand freedom of speech & greater voice in government
• April 1989 - Tiananmen Square Protest; military ordered to crush protesters
• Hundreds killed/thousands arrested

TROUBLE IN MIDDLE EAST

• Iran Contra Scandal
• 1983 - terrorists take 7 American hostages in Lebanon
• 1986 - Reagan approved sale of weapons to Iran; Iran promised to win hostage release
• Part of profits given to Contras of Nicaragua to topple their government - direct violation of Congress
• 1987 - televised congressional hearings

PRESIDENT GEORGE H.W. BUSH

• 1989-1993; Republican
• Formerly Reagan's VP
• Americans saw little reason to change course...
• Campaign promise - "Read my lips, no new taxes"
• Recession forced Bush to raise taxes
• Loses reelection to Bill Clinton

PERSIAN GULF WAR

• Operation Desert Storm
• August 1990 - Iraq invades oil-rich Kuwait
• U.S. sends 1/2 million troops & builds coalition support through United Nations
• Jan. 1991 - U.S. begins air assault followed by ground invasion
• Kuwait liberated after 100 hours of fighting
• 1st war with 24-hour news coverage

COLD WAR ENDS

• 1991 - Poland elects non-communist government; 14 nations follow & declare independence from USSR; USSR dissolves
• 1992 - Bush meets with Boris Yeltsin & declares Cold War over!
• 1993 - SALT II Treaty agreement led to 2/3 arms reduction in U.S. & Russia