Lesson 2: A Conservative Shift

Lesson Focus

Widespread dissatisfaction with the economy and government leadership under President Carter created a desire for change. This lesson explores the resulting conservative shift, which brought Ronald Reagan to power in the 1980 election.

People to Know

Ronald Reagan

Learning Objectives

• Explain why a "conservative revolution" occurred in 1980, leading to a significant political shift in the United States.
• Describe President Reagan's "Reaganomics," his supply-side economic plan designed to cut taxes, reduce spending, and stimulate business growth.
• Compare the foreign policies of Presidents Carter and Reagan, focusing on their different approaches to the Soviet Union and global engagement.

Widespread frustration with President Carter over the economy and hostage crisis caused many Americans to seek new leadership.
Republican Ronald Reagan campaigned on a platform of tax cuts and a stronger defense, defeating Carter in the 1980 election.
Reagan's victory, along with Republican gains in the Senate, signaled a major conservative shift in American politics, drawing support from groups that had traditionally voted for Democrats and creating a new conservative coalition.

Believing government was the problem, President Reagan acted quickly to change economic policy after his inauguration.
He introduced "Reaganomics," a plan based on supply-side economics that involved major tax cuts to encourage investment and deep spending cuts for social programs.
With strong communication skills and support from conservative Democrats, Reagan successfully pushed his tax and spending programs through Congress, marking a significant, bold policy victory in his first year.

Reagan's initial economic policies, including spending cuts and high interest rates, led to a severe recession in 1982 with high unemployment and business failures.
By 1983, the economy began to recover as interest rates and inflation dropped, and tax cuts gave consumers more money to spend.
While this recovery reduced unemployment, it also created a massive federal deficit because tax cuts were not matched by sufficient spending cuts.

Fearing the spread of Soviet influence, President Reagan pursued an aggressive anti-communist foreign policy in Central America.
He supported anti-communist contras fighting the government in Nicaragua and ordered a military invasion of the island of Grenada to prevent a communist takeover.
These actions were controversial, but the successful operation in Grenada proved very popular with the American public, boosting Reagan's image as a strong and decisive leader.

In an effort to stabilize the Middle East, Reagan sent U.S. Marines on a peacekeeping mission to Lebanon, which was torn by civil war.
The American forces were soon perceived as taking sides, making them a target for factions supported by Syria.
In October 1983, a suicide bomber attacked the marine barracks, killing 241 Americans and forcing Reagan to withdraw all troops, which was a major blow to U.S. prestige.

By the 1984 election, a strong economic recovery and a perception of peace made President Reagan extremely popular.
He ran against Democrat Walter Mondale and his running mate Geraldine Ferraro, who proposed raising taxes to fix the deficit.
Reagan won an overwhelming victory, which he interpreted as a clear public endorsement of his conservative policies of tax cuts, increased defense spending, and assertive foreign policy.