To What Extent was 'Big Government' Reduced? Flashcards
(23 cards)
What is New Federalism
The concept of transferring power away from the Federal Government and becoming less involved in each state and daily life
Is New Federalism and reduction of Big Government a good thing? (why and why not)
It could be as it gives each individual more freedom financially and people were often suspicious of government intervention.
It could not be because it reduces funding for welfare and local or state projects
When was the Executive Order to deregulate oil and fuel prices issued?
28th January 1981
When was the Executive Order to stop wage and price regulation issues?
29th January 1981
When was the Executive Order to the set up the President’s Council on Integrity and Efficiency?
26th March 1981
When was the Executive Order to set up the Presidential Advisory Committee on Federalism issued?
8th April 1981
When was Deregulation of controls on fuel prices?
17th July 1981
When was the Bus Regulatory Reform Act and what did it do?
- Deregulates bus services .
- 20th September 1982.
When was the Garn St Germain Depository Act and what did it do?
- Deregulates building societies
- 15th October 1982
When was the Deregulation of Natural Gas Supplies?
26th February 1983
When was the Shipping Act and what did it do?
- Loosens regulations on US and foreign shipping
- 2oth March 1984
When was the Cable Communications Act and what did it do?
- Deregulates cable communications
- 30th October 1984
When was the Surface Freight Forwarder Deregulation Act and what did it do?
- Removed government restrictions on freight forwarders (companies that arrange the shipment of goods by land-based transportation) making them easier to operate
- 22nd October 1986
When was the Foreign Trade and Competitiveness Act and what did it do?
- Allows the President more rights in making trade treaties to benefit the USA
- 23rd August 1988
3 problems that deregulation caused
- Big companies could easier buy out smaller companies without regulation and establish a monopoly.
- Big businesses could fix a price structure with each other so they did not have to compete, reducing price fall.
- Many businesses such as airline and phone companies cut services to rural areas to maximise profits
What was the Savings and Loan collapse
A collapse in the savings market throughout the mid-1980s caused by increased interets rates bankrupting the building societies
What acts did Reagan pass to counter the Savings and Loan Collapse
- 1987 Competitive Equality in Banking Act
- 1989 Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) (Done by Bush)
When was the Competitive Equality in Banking Act and what did it do?
- Provided money to cover money lost by closed Savings and Loans.
- 1987
When was the Financial Institutions Reform, Recovery and Enforcement Act and what did it do?
- Set up federal regulators and bailed out some banks at cost of $150 bn
- 1989 (Bush).
By 1988 how much had the Savings and Loans collapse lost in money?
$10 billion
How did the idea of Big Government affect the S&L crisis?
Big Government could be reduced by not intervening much in the crash, so Reagan did little, however this led to world trade shifting against the USA, leading to an increase in foreign imports, a decrease in the value of the dollar and an increase in foreign companies acquiring American ones
Why did deregulation not happen to the extent that Reagan wanted?
State and local governments often did not want to take over federal projects as they didn’t want to pay for it
How did public opinion change on deregulation after the end of the Reagan Administration
They were more opposed to it as it became clear that deregulation led to businesses becoming more self serving and gained the opporutnity to maximise profit over public benefit (for example planes flying to less places and for higher prices)
