The year 1985, often overshadowed by the dramatic collapse of the Soviet Union a few years later, stands as a crucible where the forces of the prior decade coalesced and shaped the trajectory of American and global history. It was a year that vividly demonstrated the multifaceted interplay between political leadership, economic shifts, and profound social transformations, leaving an indelible mark on the public consciousness and the very fabric of the nation.
On the international stage, 1985 was a year of both symbolic missteps and foundational shifts in global power dynamics. President Ronald Reagan, early in his second term, continued to project a tough anti-communist stance abroad, asserting that the Soviet Union still embodied the “aggressive impulses of an evil empire” and advocating for peace through strength, as evidenced by his unwavering support for initiatives like the Strategic Defense Initiative (SDI). Yet, this assertive posture was not without its internal contradictions or public gaffes. A deeply symbolic misstep occurred in April 1985 when Reagan visited a German military cemetery in Bitburg to commemorate the fortieth anniversary of V-E Day. This decision, intended to honor post-war German-American reconciliation, drew sharp criticism for its historical insensitivity, particularly given the presence of SS graves, and was seen by some as revealing a “disturbing shallowness” in the administration’s understanding of history. This incident foreshadowed future controversies, including the Iran-Contra affair, which would later expose an “ill-conceived reading of history” and a flagrant disregard for congressional will within the administration.
Crucially, 1985 also marked a turning point in U.S.-Soviet relations with the ascent of Mikhail Gorbachev as the new Soviet leader in March. While Reagan had intensified his anti-Soviet rhetoric and pushed for a “roll back” of communism, Gorbachev proved ready for engagement, leading to a crucial summit in Geneva in November 1985. This marked the beginning of a remarkable series of negotiations that would ultimately contribute to the dissipation of Cold War tensions and lay the groundwork for the Soviet empire’s eventual downfall. Reagan’s administration also continued to pursue the “Reagan Doctrine,” supporting anti-Soviet autocracies and military insurgencies in nations like Afghanistan and Nicaragua, a policy that had been prefigured by the Carter administration. However, opposition movements, such as the Pledge of Resistance and CISPES (Committee in Solidarity with the People of El Salvador), actively campaigned against these interventions, highlighting the devastation wrought on local populations and appealing to Americans’ sense of moral responsibility.
Economically, 1985 saw the continued unfolding of the “Reagan Era,” characterized by a significant economic recovery that had begun in 1983. Inflation rates plummeted, and unemployment declined, contributing to Reagan’s soaring public approval. However, beneath this surface prosperity, significant financial shifts were underway. The dollar, which had appreciated due to anti-inflation policies and increased defense spending, began to depreciate in March 1985 under pressure from foreign nations and domestic exporters. This led to coordinated efforts with Germany and Japan to manage the dollar’s value. Simultaneously, the financial landscape was being reshaped by a new embrace of monopolization. The dropping of a thirteen-year antitrust suit against IBM in January 1982, a signal of this new era, encouraged “bigness” in industries like oil, fostering an environment where economies of scale could be pursued without fear of government intervention. This period also saw ambitious figures like Michael Milken seeking to “change the world through finance,” symbolizing the burgeoning power of Wall Street and the rise of a financial culture deeply comfortable with risk and leveraged buyouts. Indeed, financial instruments like the mortgage derivative, which would later play a critical role in the 2008 financial crisis, had their conceptual roots in this era, with the first such derivative appearing just a year later in 1986.
Socially and culturally, 1985 witnessed a pushback against prevailing conservative narratives and a reawakening of social consciousness, often rooted in the legacy of 1960s activism. The anti-apartheid movement gained significant momentum, spurred by uprisings in South Africa and Bishop Desmond Tutu’s Nobel Peace Prize. On American college campuses, student activism surged, with protests at Columbia University in April 1985 notably mimicking 1960s-era tactics of building blockades and sit-ins to pressure universities to divest from South African-linked corporations. These protests, and similar ones across numerous campuses, highlighted a deep-seated desire among young people to confront injustice and signaled a growing transnational awareness.
Popular culture also reflected these shifting sensibilities. While films like Risky Business (1983) and Fatal Attraction (1987, but representing anxieties building in the mid-80s) might have reflected the decade’s materialism and anxieties, the emergence of “mega-events” such as the Live Aid concerts in 1985 showcased a powerful reawakening of social conscience in popular music, building on earlier benefit concerts like “No Nukes!” to raise awareness for social and environmental causes. This reflected a complex cultural landscape, where glitzy consumerism coexisted with a persistent progressive impulse. Meanwhile, the “culture wars” intensified, as conservative foundations actively promoted authors critical of academia and traditional values, aiming to solidify their ideas in public opinion. This era also saw the burgeoning of the HIV/AIDS crisis, a catastrophe that, despite its growing severity, would not be publicly acknowledged by President Reagan until much later in his second term.
The brutal realities of systemic oppression also continued to manifest. The 1985 bombing of the MOVE house in Philadelphia, a confrontation that resulted in the deaths of eleven people, including children, and the destruction of sixty-one homes, stands as a stark reminder of police brutality and racial tension within American cities, even those with Black mayors. Furthermore, 1985 saw crack cocaine exploding into public consciousness, setting the stage for intensified punitive drug policies that disproportionately affected Black communities. In Mexico, the government’s dissolution of its Federal Security Directorate (DFS) agency in 1985 due to its leadership’s involvement in the drug trade underscores the deep roots of corruption within state apparatuses and the complex international dynamics of the “War on Drugs”.
In retrospect, 1985 was far from a quiet year. It was a period of intense ideological contention, where the “Age of Reagan” consolidated its power and reshaped American politics, yet simultaneously faced significant challenges from social movements and evolving global realities. The events of 1985, from the diplomatic overtures to the Soviet Union and the fluctuating dollar, to the burgeoning anti-apartheid movement and the harrowing incidents of domestic brutality, collectively underscored that history is not a static narrative but a dynamic interplay of forces. It revealed that beneath the surface of official pronouncements, a different set of changes, often driven by collective action and the resilience of dissent, was actively shaping the future of the nation and the world.