Domestic Policy What two options could the Reagan administration do in order to combat stagflation Raise interest rates Supplyside economics cut taxes What is Reganomics Explain how it worked ID: 410487
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Slide1
Ronald ReaganSlide2
Domestic PolicySlide3
What two options could the Reagan administration do in order to combat stagflation?
Raise interest rates
Supply-side economics = cut taxesSlide4
What is Reganomics? Explain how it worked.
Keep interest rates high
Congress passes a massive tax cut-25%
“trickle down economics”
*benefits the wealthy most not middleclass Slide5
What programs did Reagan cut funding to in order to balance the budget and reduce the deficit?
Welfare
Food stamps
School lunch programs
Medicare Payments
Unemployment compensation
Student loans
Housing subsidies reducedSlide6
What industries did Regan deregulate and why?
End price controls on oil & gasoline-prices went down = more $ to spend
Cable television industry
Ended requirements for airbags & fuel efficient cars
Continued to deregulate the airline industry
increased public land for oil
drilling
-create
competition among different companies to reduce pricesSlide7
Foreign PolicySlide8
Explain “Peace through strength” and how it was going to work.
Large American military build up($1.5 trillion) that the Soviets would try to match which would put too much pressure on their economy leading to their collapseSlide9
What is the Reagan Doctrine? Give two examples in which the Reagan Doctrine was used.
The U.S. will support guerrillas trying to fight Communism
Afghan Guerrillas-
Mujahedeen -$570 million
Nicaraguan Guerrillas- Contras Slide10
What scandal took place during Reagan's second term? What was the result of the scandal?
Congress prohibited aid to the Contras
Reagan’s Administration secretly sold weapons to Iran (considered an enemy) in exchange for $ and the hostages in the Middle-East
Reagan claimed he had no knowledge about the $ being given to the ContrasSlide11
How does Reagan practice arms control?
Removal of missiles
Strategic Arms Reduction Talks (START)
Cut missiles on both sides in ½
Soviets refused and did not agreeSlide12
What is star wars?
Strategic Defense Initiative- plan to develop weapons that could intercept incoming missilesSlide13
What did Reagan what Mikhail Gorbachev to do in exchange for peace?
Tear down the Berlin WallSlide14
What is the INF Treaty?
Intermediate Range Nuclear Forces (INF)- treaty to destroy nuclear weapons – Dec. 1987Slide15
What eventually led to the collapse of Communism
in the Soviet Union?
INF in place Gorbachev felt confident in reducing Soviet military spending and could create political and economic reforms instead
The reforms eventually led to the collapse of the economy and Communism in Eastern Europe & Soviet Union