Chapter 25: The Reagan and Bush Years

Chapter 25 takes a look at the United States during the Reagan and Bush presidencies. The years saw the nation shift back to the right, and the world shake off the paranoia of cold war and reject the confines of communism.

Section 1 discusses how Ronald Reagan brought new conservative focus to the White House. Neoconservatism and the religious right entered the political arena when Ronald Reagan swept the 1980 election. Americans looked to the likeable candidate to restore American confidence and pride. Once in office, Reagan instituted a new direction for the economy. Things got worse before they got better, but eventually interest rates fell, consumers spent, and industry grew. Unfortunately, so did the budget deficit. Reagan favored deregulation of industry over environmental concerns. He made a number of conservative appointments to the Supreme Court, but Reagan's most historic appointment was that of Sandra Day O'Connor—the first woman to sit on the bench.

Section 2 follows the events that led to the end of the cold war and the collapse of communism. Ronald Reagan and Mikhail Gorbachev, two focused and dynamic leaders, worked through threats, proposals, and nuclear weapons agreements to bring an end to the cold war. Gorbachev instituted reforms that ultimately led to a new future for his country as well as for Iron Curtain countries in Eastern Europe. New nations formed; old ones divided. Before the end of the cold war, the United States had involved itself in civil wars that were being fought in El Salvador and Nicaragua. In each of them, Reagan sent military aid to the conservative side. But a complicated secret operation to finance Nicaraguan contras ended up embarrassing President Reagan.

Section 3 describes how George Bush, Reagan's Vice President, faced the challenges of sorting international relations, a new global economy, and the domestic economy when he won the 1988 presidential election. Within two years, Bush faced his greatest crisis—the Persian Gulf War. Without the threat of Soviet retaliation, the United States was able to act swiftly and decisively. The war restored American influence in the Arab world and brought new respect to the United Nations. Hopes for democracy in China were brutally crushed, while in South Africa hopes for government participation by all races were at long last realized. At home Americans were forced to face new economic realities—recession, debt, deficits, closings, mergers, takeovers, and layoffs.