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Questions and Answers
What economic phenomenon characterized the United States during the late 1970s and early 1980s?
What economic phenomenon characterized the United States during the late 1970s and early 1980s?
Which American president faced significant challenges during the Iran Crisis?
Which American president faced significant challenges during the Iran Crisis?
Which term best describes the feeling of discontent among Americans during Carter's presidency?
Which term best describes the feeling of discontent among Americans during Carter's presidency?
What was a major consequence of corporate restructuring during the late 20th century?
What was a major consequence of corporate restructuring during the late 20th century?
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What key event took place in Eastern Europe in the late 1980s?
What key event took place in Eastern Europe in the late 1980s?
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Which president is associated with the 'Reagan Revolution'?
Which president is associated with the 'Reagan Revolution'?
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What was a common public concern during the Ford administration?
What was a common public concern during the Ford administration?
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Which conflict is associated with George H.W. Bush's presidency?
Which conflict is associated with George H.W. Bush's presidency?
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What was a major consequence of the shah purchasing large amounts of American arms?
What was a major consequence of the shah purchasing large amounts of American arms?
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Which group was primarily responsible for suppressing opposition to the shah?
Which group was primarily responsible for suppressing opposition to the shah?
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Why did many Iranians despise the U.S. during the shah's regime?
Why did many Iranians despise the U.S. during the shah's regime?
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What event occurred in January 1979 related to the shah?
What event occurred in January 1979 related to the shah?
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What was the top personal income tax rate reduced to by the Income Tax Act of 1986?
What was the top personal income tax rate reduced to by the Income Tax Act of 1986?
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What action did Khomeini take against the U.S. after becoming the leader?
What action did Khomeini take against the U.S. after becoming the leader?
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Which Supreme Court judge was appointed by President Reagan?
Which Supreme Court judge was appointed by President Reagan?
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What triggered the increase in violence and unrest in Iran in 1977?
What triggered the increase in violence and unrest in Iran in 1977?
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What was the outcome of militant actions after the shah was allowed into the U.S. for medical treatment?
What was the outcome of militant actions after the shah was allowed into the U.S. for medical treatment?
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What controversial defense initiative proposed by Reagan was commonly known as 'Star Wars'?
What controversial defense initiative proposed by Reagan was commonly known as 'Star Wars'?
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How many civilians were reportedly killed in the unrest during 1977?
How many civilians were reportedly killed in the unrest during 1977?
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Who was primarily responsible for the surge in corporate mergers during the Reagan years?
Who was primarily responsible for the surge in corporate mergers during the Reagan years?
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What kind of bonds did Michael Milken sell that had a high risk due to existing high debts?
What kind of bonds did Michael Milken sell that had a high risk due to existing high debts?
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Which of the following was NOT mentioned as a type of institution that bought junk bonds during the Reagan era?
Which of the following was NOT mentioned as a type of institution that bought junk bonds during the Reagan era?
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What was one of the key impacts of the Reagan administration's judicial appointments?
What was one of the key impacts of the Reagan administration's judicial appointments?
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What was the tax rate on corporate profits reduced to by the Income Tax Act of 1986?
What was the tax rate on corporate profits reduced to by the Income Tax Act of 1986?
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What percentage of Fortune 500 companies were taken over, merged, or forced to go private during the 1980s?
What percentage of Fortune 500 companies were taken over, merged, or forced to go private during the 1980s?
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What was the total value of mergers and acquisitions successfully undertaken in the 1980s?
What was the total value of mergers and acquisitions successfully undertaken in the 1980s?
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How did many companies make themselves less attractive to raiders during the 1980s?
How did many companies make themselves less attractive to raiders during the 1980s?
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What general economic issue did many American corporations face by the late 1980s?
What general economic issue did many American corporations face by the late 1980s?
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What percentage of the nation’s corporate pretax earnings were consumed by debt payments?
What percentage of the nation’s corporate pretax earnings were consumed by debt payments?
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Which company cut a significant number of jobs instead of revamping its mills, as mentioned in the text?
Which company cut a significant number of jobs instead of revamping its mills, as mentioned in the text?
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How many jobs did IBM cut from its workforce between 1986 and 1995?
How many jobs did IBM cut from its workforce between 1986 and 1995?
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Which strategy was NOT mentioned in coping with debt by most corporations?
Which strategy was NOT mentioned in coping with debt by most corporations?
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What was Saddam Hussein's response to the Kurds assisting an Iranian advance in March 1988?
What was Saddam Hussein's response to the Kurds assisting an Iranian advance in March 1988?
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In August 1990, why did Iraq invade Kuwait?
In August 1990, why did Iraq invade Kuwait?
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What action did the UN take in response to Iraq's invasion of Kuwait?
What action did the UN take in response to Iraq's invasion of Kuwait?
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What percentage of the world's total oil reserves did Iraq hope to control by annexing Kuwait?
What percentage of the world's total oil reserves did Iraq hope to control by annexing Kuwait?
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Which countries joined the U.S. in moving troops to Saudi Arabia following Iraq's invasion of Kuwait?
Which countries joined the U.S. in moving troops to Saudi Arabia following Iraq's invasion of Kuwait?
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What did Iraqi soldiers do during their invasion of Kuwait?
What did Iraqi soldiers do during their invasion of Kuwait?
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What was the international response of Saudi Arabia and Kuwait to the invasion by Iraq?
What was the international response of Saudi Arabia and Kuwait to the invasion by Iraq?
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What were the Kurds seeking in northern Iraq?
What were the Kurds seeking in northern Iraq?
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What year did leftist rebels overthrow the dictatorship of Anastasio Somoza in Nicaragua?
What year did leftist rebels overthrow the dictatorship of Anastasio Somoza in Nicaragua?
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Why was Reagan determined to force the Sandinista rebels from power?
Why was Reagan determined to force the Sandinista rebels from power?
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What were the anti-Sandinista elements in Nicaragua known as?
What were the anti-Sandinista elements in Nicaragua known as?
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What action did Congress take regarding military aid to the Contras in 1984?
What action did Congress take regarding military aid to the Contras in 1984?
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Who devised a scheme to funnel federal money to the Contras?
Who devised a scheme to funnel federal money to the Contras?
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What illegal method did Oliver North use to fund the Contras?
What illegal method did Oliver North use to fund the Contras?
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What did Reagan seek from other countries and American private groups in relation to the Contras after Congress banned aid?
What did Reagan seek from other countries and American private groups in relation to the Contras after Congress banned aid?
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How did the Contras fare in their efforts against the Sandinista regime?
How did the Contras fare in their efforts against the Sandinista regime?
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Study Notes
Chapter 30: Running on Empty: 1975-1991
- The period from 1975 to 1991 was marked by economic struggles and significant foreign policy events.
- The Oil Crisis of 1973 started with Egypt and Syria attacking Israel, escalating the oil embargo against the U.S. Oil prices skyrocketed from 3to3 to 3to12 a barrel.
- President Ford's administration struggled with inflation. His program, WIN, to combat inflation failed to effectively curb rising prices and unemployment.
- Ford faced criticism over economic downturn and the fall of South Vietnam. The South Vietnamese army collapsed in 1975.
- Ford versus Carter election of 1976 : The incumbent president was a hard worker untouched by scandal, but struggled to address the nation's economic problems. Jimmy Carter, a naval officer, peanut farmer, and businessman, emphasized his lack of Washington connections and personal integrity, which resonated with voters. Carter's rise was assisted by the rise of television and democratization of delegate selection.
- Carter's administration had a reputation for presenting ideas to Congress but lacking follow-up action in their implementation and execution. This earned a reputation for a lack of effectiveness.
- The Iranian Crisis involved 400 armed Muslim militants seizing the U.S. Embassy in Tehran, Iran and holding U.S. citizens hostage, which caused an international crisis that lasted for months. During WWII, Great Britain, the Soviet Union and the United States had occupied Iran. The Iranian Shah and his secret police (SAVAK), were unpopular with citizens; the U.S. supported the Shah during this time. Opponents of the Shah and the U.S. rioted.
- The Iran hostages crisis and the 1980 election
- The rise of the Reagan Revolution and Ronald Reagan's policies
- The New Merger Movement : The Reagan years showed a mad frenzy of mergers. Notable figures were Michael Milken and Ronald Perelman, who used junk bonds to gain control of companies and led to immense financial growth, which led to further economic expansion and deregulation.
- The issues in "Job for Life": Layoffs hit home during the 1980's as corporations dealt with debt by selling assets and laying off workers. The number of employees who worked for Fortune 500 companies decreased by three million, and many jobs were moved to countries with cheaper labor.
- The 1988 Election with George H.W. Bush winning over Michael Dukakis, and the effects of the 1980s corporate restructuring on the economy and the electorate
- The collapse of communism in Eastern Europe and the Persian Gulf War were also major events during this period, with extensive involvement by the U.S.
- The Reagan Revolution involved tax cuts, increased military spending and a shift in ideological focus toward a more fervent patriotism, religion, family values and opposition to Soviet Communism.
- The Iran-Contra affair was a significant scandal involving high-level officials in the Reagan administration, accused of illegally funding the Contras and other activities.
Assessing the Reagan Revolution
- Critics point to Reagan's administration as not being effective at administration and the various scandals (Iran-Contra and financial activities) associated with the presidency.
- The period influenced American corporatization and changes in the Soviet Union. His tax cuts and booming stock market had an outsized impact on the wealthy, which disproportionately impacted others, leading to economic struggles.
- Deregulation policies were key to the era, but had unforeseen consequences
- Reagan's military policies and actions shaped political discourse.
Deficits
- The period saw a significant increase in federal deficits due to military spending, the costs of the Persian Gulf War, and the collapse of S&Ls, largely driven by leveraged buyouts and risky investments, which required taxpayer-funded bailouts.
- Tax cuts and government spending policies contributed to the rise in debt.
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Description
Explore the significant events from 1975 to 1991 in U.S. history, focusing on economic struggles and pivotal foreign policy decisions. This quiz covers the Oil Crisis, President Ford's administration challenges, and the 1976 election between Ford and Carter, all critical to understanding the era's impact on American society.
