Presidential Election 1980 Issues Iran Hostages Those Darn Russkies The Economy.
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Transcript of Presidential Election 1980 Issues Iran Hostages Those Darn Russkies The Economy.
The New Right
"In this present crisis, government is not the solution to our problem; government is the problem.“ - Reagan’s inauguration speech
Economics• The Social Science that analyzes the
production, distribution and consumption of goods and services
Economy• System of production, distribution and
consumption
Reagan’s economic solution
Tax cuts
Decrease – social spending
Deregulation
Increase – military spending
Supply-side economicsHow does it work?
Supply creates its own demand
Example:
•When Apple produces more ipads, the price goes down•If the price goes down, demand goes up (more people will buy them)
→ Therefore, produce more to improve the economy More jobs, more money, more stuff
Trickle-down Economics
More Production
More JOBS = More
Consumption
More money moving around the system
The hike in defense spending, and vastly reduced tax revenues resulted in a skyrocketing federal budget deficit .
Reagan’s goal to balance the budget by 1984 became infeasible.
GDRWest Germany
Democracy• Each person has a vote• Individuality/Expression• Rights• Freedom of movement
$ - Free Market economy Varies: wealthy, middle
class, working class, poor
Communism• No voting (one party)• State-run press/no expression• Totalitarianism (Police state)• Cannot leave
$ - State controlled economy,Most are at the same level,NOT a good economy
DDREast Germany
Reactions in the US and Europe
The United StatesA weakened USSR
Democracy in Eastern Europe
No opposition to a Unified Germany
EuropeBritain and France did not support reunification (Italy and the Netherlands agreed)
Weak Soviets = no control over Germany
Feared German aggression