The economy did turn around in 1983 and began to thrive. In fact, the "tight-money" anti-inflationary policies of President Carter were to blame for the economic downturn. They said the cuts were aimed at the poor and helped the rich. Unemployment rose to nearly 11% and several banks went bankrupt.ĭemocrats charged that Reagan's cuts were to blame. The plan took a hit when the economy slid into a recession in 1982. Supply-side economics would boost investment, production, hiring, and eventually through growth, would reduce the federal deficit. The plan called for " supply-side economics" (AKA " Reaganomics") or policies that supported businesses, such as lower taxes and less government interference. Reagan's appeal on TV and help from the boll weevils passed this bill as well. Reagan's next step was to make substantial tax cuts, about 25% across the board. Hit in the arm and lung, he recuperated and walked out of the hospital 12 days later. Reagan was suddenly shot on March 6, 1981. Southern conservative Democrats in the House called "boll weevils" went along with Reagan. The lowered budget passed. The Republican Senate went along, the Democratic House needed politics. Most of the cuts were in social programs like food stamps and federally paid-for job training programs. Reagan proposed $35 billion in budget cuts. Californians had a "tax revolt" with Proposition 13 cutting property taxes and governmental services. There was a movement away from the ideas of a "welfare state" and governmental "entitlement" programs. This message was well-received by the 1980s. In his view, the government did not fix problems, the government was the problem. Reagan put together a cabinet of the "best and the rightest." He wanted to make government smaller and get federal spending under control. Ironically, the hostages in Iran were released the exact day Reagan was sworn into office, January 20, 1981. One of his last acts was to sign a bill preserving 100 million acres in Alaska. In Carter's farewell address, he encouraged disarmament, human rights, and environmental protect. Reagan had an appeal, but the "ABC" approach (Anyone But Carter) was likely the biggest factor in the voting. Reagan won in a landslide, 489 to 49 in the electoral. Having grown up in small-town Midwest America, Reagan had a real down-home nature that was appealing and friendly. He was handsome, photogenic, and grand-fatherly. These characteristics made up what came to be known as "neoconservatives." He favored small government, laissez-faire capitalism, a tough stance with Russia, personal responsibility, and "family values." His traditional values were from the pre-60s generation. Reagan would be the oldest elected president. The Republicans had their opening and nominated Ronald Reagan-former movie star and former California governor. After a night of partying, he'd driven his car off a bridge killing his female passenger, then delayed reporting it. His campaign was damaged with the "Chappaquiddick incident" of 1969. The next Kennedy, Edward (Ted) Kennedy entered the race for the Democratic nomination. President Carter sought reelection, but his image was deeply hurt by double-digit inflation and bungling foreign affairs. In the 1980 presidential campaign, the Democrats were in trouble from the beginning.
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