Ronald Wilson Reagan became the fortieth President of the United States on January 20, 1981.
Iranian Hostages Freed
Immediately after President Reagan's inauguration, Iranian terrorists holding 53 American hostages at the American Embassy in Iran announced that they would release the hostages. President Reagan's first official act as President was to welcome the hostages home.
Air Traffic Controllers Strike
The nation's air traffic controllers went on strike in August of 1981 despite the fact that federal law forbade them to do so. When President Reagan ordered the controllers back to work and they refused, the President had them all fired. President Reagan then instituted a program to train over 11,000 replacements and refused to let the strikers back to work even after they had recognized that their efforts had failed and were willing to return.
Assassination Attempt
On March 30, 1981 President Reagan was leaving the Hilton Hotel in Washington D.C. after addressing a group of labor leaders when he was shot in the chest by John Hinckley. Hinckley fired six shots at the President's entourage, killing one police man, a secret service agent, and severely wounding President Reagan's press secretary, James Brady. The President was rushed to St. Elizabeth's Hospital in Washington where doctors removed the bullet which had entered his left lung. Hinckley, who later confessed that he had shot the President in an effort to impress the actress Jodie Foster, was found "not guilty" by reason of insanity, and was committed to a mental institution.
Sandra Day O'Conner Appointed to Supreme Court
In 1981 Sandra Day O'Conner became the first female justice to serve on the Supreme Court.
Military Escalation in South America
Soviet aid to the communist government in Nicaragua, and to the communist rebel faction trying to overthrow the government in El Salvador was countered by U.S. military assistance to the Nicaraguan rebels, and to the government of El Salvador.
Grenada
In October of 1983 U.S. forces invaded Grenada to restore the recently overthrown pro-American government. President Reagan justified the invasion as a means of protecting American lives and interests, and as a means of preventing the construction of a Cuban military base in Grenada.
Lebanon
In 1982 Israel invaded Lebanon on a search and destroy mission of military bases operated by Israel's long time enemy, the Palestinian Liberation Organization (PLO). President Reagan sent in U.S. troops to put an end to the conflict. When the Israelis finally left Lebanon later in the year, American troops came under fire from Lebanese Guerrilla forces. President Reagan finally removed the troops early in 1984, after 239 U.S. Marines were killed in a a terrorist attack on the Marine barracks at the Beirut Airport.
Space Shuttle Columbia
In 1981 NASA launched Columbia, the first space shuttle. Columbia left the earth's atmosphere with the aid of external rockets, orbited the earth for a number of days, and returned intact to an appointed airstrip on earth.
Legislation
Reagan Budget Approved
Congress partially approved President Reagan's budget in February of 1981. The original Reagan budget called for a cut in taxes, a reduction in funding for social reform programs, and a large scale increase in military spending. Congress approved the tax cut and the increase in military spending, but refused to grant the cuts in domestic programs. Without the cuts in domestic programs to balance the increase in military spending, the federal government began to incur a massive deficit.
Economic Recovery Tax Act of 1981
Congress passed President Reagan's Economic Recovery Tax Act, the largest tax reduction in history, in February of 1981. The Tax Act was repealed the following year, however, after it failed to revive the economy, and taxes were raised beyond what they had been when President Reagan took office in January of 1981.
United States to Provide Western Allies with Nuclear Arms
In 1981 President Reagan announced his plan to provide the United States' allies in Europe with nuclear missiles.
Job Training Partnership Act of 1982
Congress passed the Job Training Partnership Act in 1982 to provide skilled job training for young people just entering the work force, and for older people whose former unskilled jobs had become obsolete.
Garn-St. Germain Depository Act of 1982
Passed by Congress in 1982 the Garn-St. Germain Depository Act removed much of the federal restrictions on the nation's banks and Savings and Loans.
Strategic Defense Initiative, "Star Wars"
President Reagan unveiled his Strategic Defense Initiative Plan in September of 1983. The Strategic Defense Initiative, or "Star Wars" as it became known, was a plan to develop a defense station above the Earth's atmosphere capable of destroying nuclear missiles before they reached their intended targets.
Social Security Amendment of 1983
Congress passed the Social Security Amendment in 1983. The Social Security Amendment raised the retirement age, at which an individual was entitled to collect Social Security payments, from 65 to 70.
Bolend Amendment
Congress passed the Bolend Amendment, forbidding the aiding of Nicaraguan rebels, in October of 1984.
Ronald Wilson Reagan 1985-1989
Second Term
Events
Inauguration
President Reagan delivered his second inaugural address on January 20, 1985.
Cancer Operation
In July of 1985, President Reagan was hospitalized to undergo an operation for colon cancer. The operation was successful, and the President's recovery was quick.
Stock Market Crash
On October 19, 1987 the New York Stock exchange experienced its worst crash since 1929. Though the crash hurt the economy, its effects were not as far reaching or as drastic as the 1929 crash. The Reagan administration dealt with the loss in tax revenue by increasing taxes on the wealthy, and on corporations in 1988.
Reyhyavik Summit
President Reagan and Soviet Premiere Mikhail Gorbachev met in Reyhyavik, Iceland, for an arms control summit in October of 1986. President Reagan's dedication to the Strategic Defensive Initiative plan, "Star Wars" prevented the negotiation of treaties.
Space Shuttle Challenger
In 1986 the Space Shuttle Challenger exploded minutes after take off, killing its seven member crew.
Moscow Summit
In 1988 President Reagan traveled to Moscow for a summit meeting with Soviet Premiere Mikhail Gorbachev. The Moscow Summit resulted in a U.S./Soviet treaty to ban medium-range nuclear missiles.
Achille Lauro Incident
In October of 1985, four Palestinian terrorists seized control of the Italian passenger ship Achille Lauro while sailing in the Mediterranean Sea. The terrorists proceeded to kill an American passenger and dump his body overboard. The terrorists surrendered to the Egyptian government and were scheduled to be tried in Libya. Libya's leader, Muammar Qaddafi, was known for advocating terrorist tactics in international politics. President Reagan ordered U.S. Navy planes to intercept the airliner upon which the surrendered terrorists were aboard en route to Libya. The airliner was forced to land in Italy, where the terrorists were seized by western authorities.
Libya Invasion
In April of 1986, President Reagan ordered a bombing campaign of Libya after learning of that country's responsibility for the bombing of a West Berlin nightclub patronized by U.S. servicemen.
U.S.S. Stark
In May of 1987, Iraqi forces sunk the U.S.S. Stark stationed in the Persian Gulf. Iraqi officials declared the incident a mistake.
Iranian Airliner Shot Down
In July of 1988, United States forces shot down an Iranian airliner, killing all 290 people aboard. U.S. officials declared the incident a mistake.
"Iran-Contra Affair"
In 1985, and again in January of 1986, President Reagan authorized secret arms deals with the Iranian government, involved at the time in a war with neighboring Iraq, in the hopes that the Iranian government would work for the release of American hostages being held in Lebanon, a close ally of Iran. The profits from the arms deal were used to provide secret aid to the anti-Sandinistas, or "contras", in Nicaragua, a direct violation of the Bolend Amendment of 1984. The deals were orchestrated by President Reagan's national security adviser, Admiral John Poindexter, and by Marine Lieutenant Colonel Oliver North. Poindexter resigned his position, and North was fired from his job on the national security council when the secret deals were revealed to the public in November of 1986. In a 1987 televised hearing, Colonel North was convicted of obstructing justice, the illegal acceptance of personal gifts, and of altering, withholding and destroying evidence. In February of 1990, former President Reagan appeared before Congress to testify as to the extent of his involvement in the "Iran-Contra Affair." The former President was not charged. In 1990, the charges against North were reexamined, and the charges of altering, withholding, and destroying evidence were overturned. Poindexter was tried in 1990 and convicted of obstruction of Congress, conspiracy, and perjury.
Legislation
Income Tax Act of 1986
Early in 1986 the Reagan administration introduced a plan to simplify the federal tax system and reduce the federal budget deficit. The new tax system was designed to eliminate tax shelters and loopholes which the wealthy had used to avoid paying taxes. The new system also excused people in the lowest tax bracket from paying any income tax at all. Under the new system taxable incomes below $29,750 would be taxed at the rate of 15 percent, while taxable incomes above this would be taxed at a rate of 28 percent. The Income Tax Act benefited the wealthiest of the wealthy by reducing their income tax from the 50 percent under the old system to 28 percent under the new. The Income Tax Act also reduced the tax on corporate profits from 46 to 34 percent.
