KEY TERMS Key Terms and People to Know for the Regents Exam
1970s Oil/Energy Crisis
The Organization of Petroleum Exporting Countries (OPEC) put an embargo on oil sales to the US. This hurt the US economy and caused inflation. The crisis revealed the problem of US dependence on foreign oil (which is still an issue).
Camp David Accords
President Jimmy Carter’s greatest foreign policy success was negotiating a peace deal between Egypt and Israel. Since the end of WWII, peace in the Middle East has been a primary concern for the US because of the oil in the Middle East.
Supply-Side Economics
Reagan cut taxes for businesses and the wealthy so they could invest more capital ($) and create jobs. Reagan believed that the wealth would then “trickle down” to the middle class. However, middle class incomes have not grown since the 70s.
Cold War Defense Spending
Reagan wanted to end the Cold War by outspending the Soviets and building up America’s military. Reagan wanted to build the Strategic Defense Initiative (nicknamed Star Wars), which would’ve attempted to destroy missiles with lasers.
Iran-Contra Affair
Reagan was involved in a scandal involving the illegal sale of weapons to Iran (in exchange for hostages held in Lebanon) and the illegal funding of the anti-communist rebels (the Contras) in Nicaragua.
Fall of the Berlin Wall / End of Cold War
Reagan visited Berlin in 1987 and called for the Berlin Wall to be torn down. In 1989, the Berlin Wall was torn down, symbolizing the end of the Cold War. The Soviet Union broke apart into individual countries in 1991.