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In Search of the American Dream: The USA, c1917–96

The extent to which big government was reduced

  • 3 things to know
  • Paper 1

Overview

Recall questions on New Federalism, which programmes were cut, why entitlements grew anyway, and how far federal spending actually fell.

What you need to know

Answer each one before you reveal it.

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Key term

How successful was deregulation as a reduction of government?

Key term

What was the New Federalism?

Who and when

Why did federal spending nonetheless rise under Reagan?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What did Reagan mean by saying government was the problem?

    Model answer

    That federal regulation, taxation and welfare stifled enterprise and individual responsibility, so the remedy was to reduce Washington's role.

  2. 2

    What was the New Federalism?

    Model answer

    The attempt to shift responsibility and funding for social programmes from the federal government to the states, largely through block grants.

  3. 3

    Which domestic programmes were cut in the 1980s?

    Model answer

    Food stamps, school meals, housing subsidies, job training and welfare for the working poor, together with sharp reductions in federal aid to cities.

  4. 4

    Why did federal spending nonetheless rise under Reagan?

    Model answer

    Defence spending grew by more than the domestic cuts saved, and the great entitlement programmes, Social Security and Medicare, were politically untouchable and grew with the ageing population.

  5. 5

    What happened when Reagan tried to cut Social Security?

    Model answer

    Proposals to reduce early retirement benefits in 1981 produced such hostility in Congress that they were abandoned, and reform was handed to a bipartisan commission.

  6. 6

    How far was the federal workforce reduced?

    Model answer

    Barely at all. Civilian federal employment was little changed by 1989, and the number of regulatory agencies was not significantly reduced.

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