Chapter Summary
The nation's disillusionment with its government-disillusionment produced by the crises of the 1960s and early 1970s-intensified further when governmental leaders could not deal successfully with the disruptive economic forces of the 1970s. In "Economic Crisis and Ford's Response," we examine the nature of the economic crisis and its causes. This section also covers President Ford's responses to the economic and energy crises, the nuclear power debate, and the fiscal crisis experienced by some of the nation's cities.
An apathetic electorate elected Jimmy Carter to the presidency in the 1976 election. Although Carter did score some notable domestic accomplishments, his unwillingness to compromise alienated congressional representatives of both parties, and his fiscal conservatism put him at odds with the liberal wing of the Democratic party. In addition, Carter was plagued by political and economic forces beyond his control; his popularity declined dramatically, and he became politically impotent.
As the American people became more and more deeply troubled and frightened by changes and forces over which they and their government seemed to have little control, they became more distrustful of government and of those groups that continued to advocate change within society. This conservative mood was buttressed by the uniting of conservative politicians of the "old right" with evangelical Christians of the "new right." The channeling of these forces into a new conservative coalition, plus a distrust of government born of a decade of chaos produced America's "turn to the right" in 1980 and led to Ronald Reagan's victory in the presidential election of that year.
With widespread support from the American people, President Ronald Reagan, the standard-bearer of a new conservative coalition and a strong advocate of supply-side economic theory, persuaded Congress to enact two major aspects of his conservative agenda: (1) deep spending cuts in social and health programs and (2) a five-year, $750-billion tax cut that primarily benefited the wealthy. In addition, out of the belief that government regulations reduced business profits and slowed economic growth, the Reagan administration launched an attack against federal environmental, health, and safety regulations.
Although inflation and interest rates declined during Reagan's first two years in office, these successes resulted from the Federal Reserve Board's policies, a decline in oil prices, which had a ripple effect throughout the economy, and a massive recession lasting from mid-1981 to late 1983. The recession affected both industrial and agricultural workers, and, in spite of an economic recovery that began in 1984, poverty increased to pre-Great Society levels. The one group that did not experience increased poverty levels was the elderly, a group that had more political power than ever before. Although Reagan promised to maintain a "safety net" for the most needy in American society, when faced with a mounting federal deficit, he reduced welfare and social programs, maintained his tax cuts, and increased defense spending for a major military buildup. Using these issues to their advantage, the Democrats picked up twenty-six seats in the House of Representatives in the 1982 congressional elections but were unable to take control of the Senate.
However, issues that ordinarily would have posed severe political liabilities for an incumbent during a presidential election year had little impact on the voters' perceptions of President Reagan. Although in many cases the voters disagreed with the president's policies, they liked Reagan personally and seldom seemed to hold him responsible for the failures of his administration. These and other factors led to Reagan's landslide victory over his Democratic opponent in the 1984 presidential election.
From this discussion of the attempts by successive administrations to deal with the nation's domestic problems during the 1970s and 1980s, the focus of the chapter shifts to an analysis of the impact of the economic and energy crises on various groups in American society. The increase in poverty accompanying the stagnant economy of the 1970s and the recession of the early 1980s occurred most often among nonwhites, children, and female heads of households. Although many Americans accepted traditional beliefs that blamed the victims of poverty for their distress, economic reality meant that occupational opportunities, especially for unskilled workers, were severely limited.
While poor unskilled blacks languished in poverty, the black middle class expanded. In spite of increased opportunities for some blacks, the resurgence of white racism, the problems encountered by Indians, and the struggle of Hispanics and other immigrants make clear that the divisive elements long present in pluralistic America were worsened by the political, social, and economic crises of the 1970s and 1980s.
Divisiveness also continued in the form of sexism. Although women had made gains in American society, they still faced barriers. In "Feminism, Antifeminism, and Women's Lives," the authors discuss the emergence, characteristics, and aims of the antifeminist forces that gained strength in the 1970s. Although, according to feminist scholar Barbara Ehrenreich, the appeal of the Playboy lifestyle was a major factor in the soaring divorce rate of the 1960s and 1970s, most antifeminists blamed the revolt against marriage on feminists. Arguing in favor of "traditional" American values in the midst of a rapidly changing society, antifeminists successfully stalled ratification of the Equal Rights Amendment and began to campaign actively against legalized abortion. The recession also affected women adversely. Occupational segregation continued, and many women found themselves caught in "the Superwoman Squeeze."
The domestic problems faced by the United States continued to mount during Reagan's last four years in office, and the polarization and tensions within pluralistic America increased. As the gap widened between rich and poor, a variety of factors increased the severity of poverty. Nonwhite minorities, immigrants, and women continued to face the discrimination accompanying racism, nativism, and sexism. The crack epidemic and the AIDS epidemic continued to plague, and divide, the American people. Furthermore, despite the "feel-good" campaign conducted by Reagan in 1984, once reelected he and Congress were forced to grapple with the economic problems posed by the spiraling federal deficit. Reagan also began to make his mark on the Supreme Court and oversaw enactment of a sweeping tax reform bill in 1986. Revelations related to the Iran-contra scandal and the fact that Reagan was a lame-duck president combined to cause a decline in Reagan's ability to lead during his last two years in office. However, thawing of relations between the United States and the Soviet Union and a six-year economic recovery led the American electorate to elect George Bush to the presidency in 1988. President Bush and the American people faced difficult choices as the United States prepared to enter the decade of the 1990s.
Learning Objectives
- Discuss the causes, characteristics, and consequences of the economic and energy crises of the 1970s, and explain and evaluate the attempts by the Ford and Carter administrations to deal with these crises.
- Examine the issues and personalities and explain the outcome of the 1976 presidential election.
- Discuss Jimmy Carter's personal and political background; examine the domestic issues and political problems that faced the Carter administration; and explain and evaluate the administration's actions concerning those issues and problems.
- Examine the emergence, characteristics, goals, and accomplishments of the new conservative coalition, and discuss the impact of this coalition on the election of 1980.
- Discuss Ronald Reagan's personal and political background, and explain his political, social, and economic views.
- Examine the issues and personalities and explain the outcome of the 1980 congressional and presidential elections.
- Examine Ronald Reagan's economic policies in relation to federal spending, federal income taxes, and federal environmental, health, and safety regulations; explain Congress's reaction to these policies; and assess the impact of these policies on the United States.
- Discuss the causes and consequences of the 1981-1983 economic recession.
- Examine the issues and personalities and explain the outcome of the 1984 presidential election.
- Discuss the problems that nonwhites, immigrants, and women faced in American society during the 1970s and 1980s; explain their approaches to those problems; and discuss the extent to which they were successful in achieving their goals.
- Discuss the emergence, characteristics, and goals of the antifeminist and anti-abortion movements, and discuss their impact on American society during the 1970s and 1980s.
- Examine the forces that caused increased polarization of American society during the 1980s.
- Examine the reasons for, the extent of, and the effects of poverty in America during the 1970s and 1980s, and discuss the characteristics of the poor.
- Discuss the drug epidemic and the AIDS epidemic, explain their impact on the American people and American society, and assess the government's response to the threats posed by these epidemics.
- Examine the domestic economic challenges that faced the Reagan administration during its second term, explain Reagan's actions concerning those challenges, and discuss the consequences of those actions.
- Explain the reaction of the American people to the Iran-contra scandal and hearings, discuss the revelations concerning Reagan's management style, and examine the scandal's impact on President Reagan's ability to govern.
- Discuss the political problems faced by Ronald Reagan during his last two years in office.
- Examine the issues and personalities and explain the outcome of the 1988 presidential election.
Chapter Outline
- Introduction
Economic problems during the 1970s made possible a conservative resurgence with the election of Ronald Reagan in 1980. Unfortunately, the Reagan years also polarized America. - The Economic Crisis and Ford's Response
- OPEC Price Increases Fuel Inflation
In 1973 OPEC raised the price of petroleum, which hurt consumers but added to oil companies' profits. - Auto Industry Recession
Americans began buying smaller, foreign-made cars, leading to a major recession for American manufacturers. - The Shifting Occupational Structure
Deindustrialization led to layoffs. As Americans lost high-paying industrial jobs many found themselves in lower-paying service occupations. - Lagging Productivity
Lack of capital improvements, declining educational standards, and a declining work ethic created a drop in productivity. - Easy Credit and Inflation
Increased buying on credit in the 1970s drove prices up. - President Ford's Response
Ford, following the tenets of monetary policy, cut federal spending and encouraged the Federal Reserve Board to raise interest rates to banks. The nation became mired in its worst recession in 40 years. - Nuclear Power
When OPEC lifted its embargo, incentives to find alternative fuel diminished. Despite accidents at nuclear power plants, some advocated more reliance on nuclear energy. - Gerald Ford's Presidency
Throughout his term, very little was accomplished. - Election of 1976
Jimmy Carter took advantage of the reaction against Watergate to defeat Gerald Ford in 1976.
- OPEC Price Increases Fuel Inflation
- Continuing Economic Problems and the Carter Presidency
- Economic Discomfort in 1980
Unemployment and inflation produced a very high "discomfort index." - Carter's Flagging Popularity
Carter's economic policies angered liberal Democrats. The Iranian hostage crisis and OPEC price increases led to public disapproval. - Carter's Domestic Accomplishments
Carter took noteworthy steps in the areas of energy, transportation, and conservation policy.
- Economic Discomfort in 1980
- Conservative Resurgence and Reagan
- Resurgence of Conservatism
The growth of the Sunbelt, political skepticism, and a new political alignment led to a resurgence of conservatism. - A Shifting Population
By 1980 the American population had grown older, and people continued to move to the Sunbelt. - Reagan's Early Career
Ronald Reagan had been a liberal as a young man, but his ideology increasingly shifted to the right. - Reagan as the Republican Candidate
Promising to follow the tenets of "supply-side" economics, Reagan appealed to a broad range of voters and united the old right and the new right within the Republican party. - Election of 1980
Reagan attracted broad support, and Republicans also made gains in the Senate, House, and governors' offices.
- Resurgence of Conservatism
- "Reaganomics"
- Tax Cuts
Reagan's policies produced the largest tax cut in history. - Weakened Environmental Enforcement
Reagan appointed opponents of regulation to important environmental posts. - Hard Times for Labor Unions
Union negotiators had to settle for less than they were accustomed to receiving. - Falling Inflation
Lowered interest rates, increased oil production, and continued unemployment drove down prices. - Rising Unemployment
By 1982, unemployment reached 10.8 percent. Supply-side economics did not lift America out of recession. - Resurgence of Poverty
Despite increased poverty, especially among minorities and families headed by women, Reagan cut welfare aid. - 1982 Elections
In the House, the Democrats gained twenty-six seats; in the Senate, the Republicans retained their majority. - The Election of 1984
An improved economy and his reputation as a strong leader helped Reagan as he faced re-election. Reagan won a landslide, taking every state except Mondale's home state of Minnesota.
- Tax Cuts
- People of Color and New Immigrants
- Declining Job Opportunities for African Americans
Many African Americans suffered severe economic dislocation as the number of blue-collar jobs declined. - African American Middle Class
Although the number of poor African Americans increased, the black middle class was also expanding. - White Backlash
Many white Americans expressed racial resentment over affirmative-action programs and forced school busing. - Black Anger
African Americans felt great anger over what they perceived as a racist judiciary and administration. - Native Americans
Native Americans, suffering a high incidence of certain diseases and high unemployment, began to become more militant. - "Red Power": Indian Self-Determination
In 1973 members of AIM seized 11 hostages and a trading post at Wounded Knee, South Dakota. In 1974 Congress passed the Indian Self-Determination Law. - Indian Suits for Lost Land
Many Indians sued for compensation and protection through the Indians Claims Commission, but generally Native Americans' rights remain vulnerable. - Hispanic Americans
Hispanic Americans comprise a large, and increasingly important, minority group in the United States. - Hispanic Cultural Pride
Many Hispanics, who prefer their own culture to that of Anglo-Americans, have resisted assimilation. - New Influx of Immigrants
The United States absorbed some 13 million immigrants from 1970 to 1990, many coming from the Third World. - Immigration Reform
In 1986, Congress passed the Immigration Reform and Control Act to discourage illegal immigration.
- Declining Job Opportunities for African Americans
- Feminism, Anti-Feminism, and Women's Lives
- Antifeminist Movement
"Profamily" groups blamed feminism and the women's movement for many of America's social problems. - Equal Rights Amendment
Anti-feminists succeeded in stopping ratification of the Equal Rights Amendment. - Women Opponents of Reagan's Conservatism
Many people condemned Reagan for his programs, which they believed hurt women and children. - Increased Burdens on Women
Recession, spiraling divorce rates, and responsibility for the home and family put economic pressure on women.
- Antifeminist Movement
- A Polarized People: American Society in the 1980s
- Increasing Inequality
Increased poverty caused a widening of the gap between poor and affluent Americans. - Changing Job Market
The reliance on low-paying service jobs caused a substantial drop in many American's standards of living. - Drugs and Violence
Illegal drugs, particularly cocaine and "crack," have been extremely harmful to the urban underclass. - AIDS
Acquired Immune Deficiency Syndrome divided communities and led to a change in Americans' sexual behavior.
- Increasing Inequality
- Economic Upturn and the Election of 1988
- Mounting Fiscal Deficit
Under President Reagan, the national deficit rose to an extraordinary level. - A Conservative Supreme Court Reagan appointed more conservative justices to the Supreme Court during his second term.
- Iran-Contra Scandal
Questions over the illegal sale of arms to the contras and concern with Reagan's management style hurt the president politically. - Reagan's Decline
The Great Communicator took on the appearance of a tired, bumbling old man. - Reagan's Ongoing Political Woes
Congress overrode Reagan's veto of a highway construction bill and failed to confirm two Reagan appointments to the Supreme Court. In October 1987 the stock market fell 508 points. - Continuing Economic Recovery
Many people benefited from the six-year economic recovery. - Reagan's Presidency Assessed
Some believed Reagan had forged a new conservative coalition. Although a popular president, Reagan's programs provoked severe criticism. - George Bush
After a bitter primary campaign, Vice President George Bush won the Republican nomination. - Presidential Campaign of 1988
The campaign was characterized by the use of clichés and negative attack ads. - Bush's Victory in 1988
Peace abroad and a stable economy at home helped ensure a victory for George Bush over Michael Dukakis
- Mounting Fiscal Deficit
Discussion Questions
- How did the postwar economic boom come to an end? How did the different presidents react to economic crises? Did they enjoy any success? What might they have done differently?
- How has a shifting occupational structure influenced America? What led to the shift? How have businessmen and politicians responded? How does this situation shape your future?
- What effect did the Reagan years have on the United States? What policies provided his major successes? Were there any failures? Would he have won a third term? Why or why not?
- Why did America polarize during the Reagan administration? What forms did that polarization take? How did different Americans respond? How did it influence contemporary conditions? How did it affect your local community?
- How did the Reagan administration affect women and children, both positively and negatively? What unique problems did women face? What is the "feminization of poverty"? Does it affect your life?
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