AP US History 9.1-9.2: Reagan and Conservatism

How did federal spending change during Reagan's presidency?

Domestic social-program spending was targeted for cuts, but defense spending increased substantially. Several programs, including Medicaid and food assistance, faced reductions or tighter eligibility, while some social spending later rose.

What factors contributed to the rise of conservatism before Reagan's presidency?

Important factors included distrust of government after Watergate, the organization of the religious right, culture-war issues, suburbanization, and the movement of many white Southern voters toward the Republican Party.

How did Reagan present conservatism to the electorate?

Reagan used optimism, charisma, and effective communication to portray conservatism as a forward-looking alternative to policies associated with New Deal liberalism.

What political shift helped produce Reagan's 1980 victory?

American politics shifted toward conservatism as many voters lost confidence in New Deal and Great Society liberalism, expanded government programs, and the Democratic Party.

How did the religious right contribute to the conservative movement?

The religious right emerged as a cohesive political force supporting conservatism and mobilizing voters around culture-war issues such as abortion, sexual freedom, divorce, and LGBTQ rights.

What was significant about the 1980 presidential election results?

Reagan won about 50.7% of the popular vote and 489 of 538 electoral votes. Republicans also gained control of the Senate, while Democrats retained the House.

When was Ronald Reagan president of the United States, and who succeeded him?

Reagan served from January 20, 1981, to January 20, 1989. He was succeeded by his vice president, George H. W. Bush.

What did the term 'Reaganomics' refer to?

Reaganomics referred to economic policies based largely on supply-side economics: major tax reductions, efforts to reduce domestic spending, deregulation, and reliance on market forces.

What was the central claim of supply-side economic theory used by Reagan's administration?

Supply-side advocates argued that lower tax rates would encourage investment and economic growth, potentially increasing government revenue over time. Critics disputed that tax cuts would pay for themselves.

What major changes were made by the Economic Recovery Tax Act of 1981?

The law reduced the highest marginal income-tax rate from 70% to 50%, lowered the capital-gains rate from 28% to 20%, expanded the estate-tax exemption, and reduced corporate taxes.

What was the political significance of Reagan's tax-cut agenda in his first term?

Passing the 1981 tax cut was Reagan's top domestic priority and demonstrated his ability to unite Republicans and attract support from conservative Southern Democrats, even though Democrats controlled the House.

Why did Reagan agree to the Tax Equity and Fiscal Responsibility Act of 1982?

Growing concern about federal deficits led Reagan to accept tax increases. The law raised the cigarette tax and reversed part of the corporate tax reduction from 1981.

What was the Tax Reform Act of 1986 designed to accomplish?

It simplified the tax code by reducing the number of tax brackets and eliminating or limiting many tax breaks. The top marginal rate fell to 28%, while the capital-gains rate for high earners increased to 28%.

What was the overall effect of Reagan's tax legislation on the federal tax burden?

Although tax rates and liabilities changed substantially across income groups, the overall federal tax burden remained approximately 19% of gross national product.

Which domestic programs or policies were targeted by Reagan's 1981 budget cuts?

The Omnibus Budget Reconciliation Act of 1981 reduced funding for programs such as food stamps, school lunches, and Medicaid. The administration also repealed the Comprehensive Employment and Training Act and tightened unemployment-benefit eligibility.

What did Reagan's policy of 'New Federalism' seek to do?

New Federalism aimed to transfer responsibility for many social programs from the federal government to the states. Congress provided limited support for the approach.

What happened to defense spending under Reagan?

Unlike many domestic programs, the Department of Defense received major budget increases as Reagan pursued military expansion and a more aggressive Cold War strategy.

Why did federal deficits and debt increase during Reagan's presidency?

The administration combined substantial tax cuts with increased defense spending, while spending reductions were smaller than anticipated. The result was persistent deficits and a significant rise in federal debt.

How did federal deficits change between fiscal years 1981 and 1988?

The deficit grew from about $79 billion in fiscal year 1981 \to$128 billion in 1982 and more than $200 billion in several later years, including about$155 billion in 1988.

How did federal debt as a percentage of GDP change during Reagan's presidency?

Federal debt rose from about 25.2% of GDP in 1981 to roughly 39.9% in 1988, illustrating the fiscal cost of tax cuts and increased defense spending.

What did deregulation mean in Reagan's economic program?

Deregulation meant reducing or eliminating federal rules governing economic activity in accordance with Reagan's preference for laissez-faire policies, free markets, and less government intervention.

What domestic economic outcomes did supporters associate with Reagan's presidency?

Supporters credited Reagan's policies with contributing to the economic recovery of the 1980s and restoring confidence in the American economy, although critics emphasized deficits and increased wealth inequality.

Why did Reagan's domestic legislative momentum weaken after 1981?

The economy and rising deficits created political pressure, while Republican losses in the 1982 midterm elections made conservative Democrats less willing to support Reagan's proposals.

How did Reagan's presidency affect the modern conservative movement?

Reagan popularized conservative ideas, strengthened Republican identification with tax cuts and military expansion, and helped establish a political period often called the 'Reagan era.'

What are major criticisms of Reagan's presidency?

Critics point to rising federal deficits, increased national debt, wealth inequality, and reductions or restrictions affecting social programs.

Why do many historians rank Reagan as an important modern president?

Historians often credit him with reshaping American conservatism, influencing domestic economic policy, restoring public confidence, and helping move the Cold War toward a peaceful conclusion.