Reagan, big government

Question 1

How did the Reagan administration say they reduced big government? (3)

Answer 1

• helped bring down the cost of petrol and heating fuel by deregulation
• Created a federal strike force to combat government fraud and waste (saved $2 billion in 6 months)
• Replaced federal agencies with private sector ones

Question 2

What had Carter deregulated before Reagan

Answer 2

Deregulated airlines and drafted bills on deregulating trucking

Question 3

28 January 1981

Answer 3

Executive order to deregulate oil and fuel prices
-passed by Carter

Question 4

29 January 1981

Answer 4

Executive order to stop price and wage regualtion

Question 5

8 April 1981

Answer 5

Executive order
-set up the Presidential Advisory Committee on Federalism

Question 6

17 July 1981

Answer 6

Deregulation of controls on fuel prices

Question 7

20 September 1982

Answer 7

Bus Regulatory Reform Act

-deregulates bus services

Question 8

15 October 1982 Act name

Answer 8

Garn St Germain Depository Institution Act

Question 9

What did the Garn St Germain Depository Institution Act do? (3)

Answer 9

• Deregulates Savings and Loans institutions
• Allowing them to invest in more ventures including property speculation
• Allows them more freedom in their mortgage lending

Question 10

26 February 1983

Answer 10

Deregulation of Natural Gas supplies

Question 11

20 March 1984

Answer 11

Shipping Act

-loosens regulations on US and foreign shipping

Question 12

30 October 1984

Answer 12

Cable Communications Act

-deregulates cable communications

Question 13

22 October 1986

Answer 13

Surface Freight Forwarder Deregulation Act

-allows greater freedom for people working with trucking companies to ‘bundle’ part loads

Question 14

23 August 1988

Answer 14

Foreign trade and competitiveness Act

-allows the president more rights in making trade treaties to benefit the USA

Question 15

Problems of deregulation (3)

Answer 15

• Rise in the number of conglomerates; Big companies bought out smaller struggling businesses
• Many businesses (e.g. phone and airlines) cut services provided to maximise profits. Mostly rural areas suffered
• ALTHOUGH initially there were lower prices through competition, big businesses would ‘fix’ the price structure so they wouldn’t have to compete

Question 16

Effects of deregulation on workers

Answer 16

Businesses set their own standards of safety (physical and financial) and set them lower than government regulators

Question 17

Problems with deregulating S&L institutions (2)

Answer 17

• People made increasingly risky investments to compete with banks and other financial institutions
• Many S&Ls failed through incompetence

Question 18

What Acts did the federal government have to pass to cover money lost by S&Ls

Answer 18

-Competitive Equality in Banking Act 1987 ($10 billion)

-Financial Institutions Reform, Recovery and Enforcement Act 1989 ($150 billion)
FIRREA

Question 19

Big government in the Department of Education

Answer 19

-Tried but fail to abolish it, established by Carter in 1979

• BUT reduced staff by 25%
• Cut many programmes
• Decreased education grants to the states by 63%

Question 20

Civilian employment in the federal government under Reagan

Answer 20

-ROSE by 3% due to his build up of national defence where employment grew by 11.5%

Question 21

Welfare under Reagan (4)

Answer 21

• Cuts made in 212 federal programmes
• Cuts Social Security benefits

BUT

• Increased payroll taxes that funded social security
• Pensions, medicaid and veteran’s benefits were left intact