10 Worst Decisions From the 1980s

Latin American Debt Crisis (1982-89)

Borrow, borrow, and borrow some more! This was the economic philosophy of many Latin American nations during the 1960s and 1970s. Lured in by low-interest loans, they sought to fund ambitious infrastructure projects and modernize their nations. Then the 1980s came and brought with it a perfect economic storm: global recessions, soaring interest rates, and plummeting oil prices. Countries like Brazil and Mexico found themselves drowning in debt, unable to keep up with mounting interest payments. The crisis peaked in 1982: Mexico announced to the world that it could no longer meet its debt obligations. For Latin America, the 1980s were La Década Perdida[a], or the "Lost Decade." Economies stagnated, unemployment skyrocketed, and widespread social unrest spread across South America.

Savings & Loan Crisis (1986-95)

By 1986, U.S. local banks faced an existential crisis. Originally, savings and loans banks specialized in long-term, fixed-rate mortgages. Stability was everything, and stable interest rates made mortgages safe for both homeowners and banks. The soaring inflation of the late 1970s changed everything. The Federal Reserve stepped in, hiking interest rates dramatically. This shift left S&Ls in a bind: they were paying higher interest on new deposits while stuck with low-yield, long-term loans. Enter Reagan-era deregulation. Without anyone looking over their shoulders, S&Ls ventured into the realm of high-risk investing - without any expertise whatsoever. Reckless lending and fraud were rampant. By the mid 90s, nearly a third of S&Ls collapsed. American taxpayers had to shell out over $100 billion in bailouts.

Worldwide Failure to Manage HIV/AIDS (1980s & Beyond)

In the early 1980s, gay communities were struck by fear of a nameless disease. Rumors spread of a 'gay cancer' striking at the heart of the community. The disease - which turned out to be HIV/AIDS - wasn’t just ignored by world governments: it was politicized to an appalling degree. Religious leaders and policymakers around the world dragged their feet; some even called AIDS divine punishment. In America, President Reagan stayed silent for years, letting the crisis explode. By the time action was taken, millions were infected worldwide. It wasn’t just a public health disaster; it was a worldwide moral failure. The tide finally turned in 2003 with PEPFAR[b], an aid program that has saved over 25 million lives.

Soviet War in Afghanistan (1979–89)

It's Christmas, 1979 and Soviet tanks are rolling into Afghanistan. The Communist superpower is hoping to prop up a faltering Communist government in the face of overwhelming Islamic resistance. Moscow envisioned a swift intervention. What they found was a grueling, decade-long quagmire. Soviet forces faced fierce resistance from the mujahideen. Islamic rebels were bolstered by covert American support and supplies. The war drained the USSR's coffers, sapped its morale, and was a significant contributing factor to their eventual collapse. Unfortunately, America fared no better. They refused to contribute to the country's rebuilding after more than a million civilians were killed. They left a vacuum that would ultimately be filled by both the Taliban and Al-Qaeda.
The Tiananmen Square Massacre (1989)
Students have been the cornerstone of civil protest for centuries, espousing lofty ideals in search of justice and social change. In the spring of 1989, however, thousands of Chinese students found only sorrow. They flooded into Tiananmen Square, demanding political reform and personal freedom. They staged peaceful protests for weeks as the world looked on, hopeful that it could spark a new Chinese revolution. When June rolled in, those hopes were dashed. The Chinese government sent in troops and tanks to quell the unrest. The military massacred unarmed civilians, scattering or arresting survivors. The official death toll is unknown, with estimates ranging from a few hundred to several thousand. The crackdown crushed any potential reform movement, ushering in decades of iron-fisted rule.

African Famine Crisis & Mismanagement (1980s and Beyond)

Famines have occurred for all of human history. Oftentimes, Mother Nature is at fault. The African famines starting in the 1980s are a different story. They began with horrific droughts, exacerbated by governmental mismanagement. Civil wars, corruption, and Cold War politics turned localized food shortages into mass starvation. Ethiopia’s 1983–85 famine was the worst, killing over a million people by some estimates. All the while, local warlords and corrupt officials hoarded aid. Somalia and Sudan faced similar tragedies, with famines lasting long into the next decade and beyond. The global response was and is still slow and inadequate. Even Live Aid’s record-breaking charity concert failed to fix systemic issues. The region is now trapped in a decades-long cycle of dependency, economic ruin, and mass death.

Exxon Valdez[c] Oil Spill (1989)

In the wee hours of March 24, 1989, the Exxon Valdez oil tanker was steaming through the Prince William Sound. Unfortunately, against company policy, only one officer was on the bridge. Suddenly, it crashed into Bligh Reef, tearing open its hull and releasing almost 11 million gallons of crude oil into the pristine Alaskan waters. This environmental catastrophe devastated local wildlife, killing hundreds of thousands of seabirds, otters, seals, and whales. The spill spread over 1,300 miles of coastline, making containment and cleanup efforts incredibly challenging. It also devastated multiple local economies, especially indigenous coastal communities. The incident led to changes in environmental regulations and spurred advancements in oil spill response strategies. Sadly, those strategies have had to be employed time and again.

Iran[d]-Contra Affair (1985-87)

In one of the most backhanded and absurd confessions in political history, Ronald Reagan addressed the nation in March, 1987. His speech was a masterclass in self-serving moralism: What did he mean? "You know that whole Iran-Contra denial? Well, turns out, I did it." The Iran-Contra scandal was a tangled web of illegal arms sales to Iran, with the proceeds used to secretly fund Contra rebels in Nicaragua. It was an end-around Congress who banned that aid to the Contras. When exposed, it shattered Reagan’s image as a supposed straight shooter. Fortunately for the Gipper, some of his aides fell on their swords. Reagan walked away largely unscathed. The scandal further eroded trust in the government and set a terrible precedent for future presidential misdeeds.

Chernobyl Disaster (1986)

Few disasters have been as nearly apocalyptic as the Chernobyl meltdown. On April 26, 1986, reactor number four at the Soviet nuclear plant exploded, unleashing a radioactive nightmare. The disaster was caused by a lethal mix of flawed reactor design and human error. The Soviet culture of secrecy delayed evacuation and caused more suffering. When people were finally moved out of Pripyat[e], it was too late; thousands were already exposed to deadly radiation. The Soviet Union downplayed the catastrophe, but the truth leaked out when radiation alarms went off in Sweden. Chernobyl is now a ghost city, its former citizens left to suffer with lingering health crises. Decades later, the exclusion zone remains a threat thanks to the Russian invasion of Ukraine.

America Props Up Dictators Around the World (1980s and Beyond)

After World War II, America made one thing clear: Communism was the ultimate enemy. To fight it, Washington was willing to make deals with devils in every corner of the globe. From Pinochet[f] in Chile to Mobutu in Zaire, America propped up brutal strongmen across developing nations. But the 1980s saw this strategy unravel spectacularly. The Reagan administration funneled cash and weapons to violent regimes in El Salvador and Guatemala; there, death squads massacred civilians. In the Philippines, U.S.-backed dictator Ferdinand Marcos looted billions. Even Saddam Hussein received American support during the Iran-Iraq War. The world's 'city on a hill' turned a blind eye to widespread suffering all in the name of “stability,” and it failed. The blowback still haunts America today.

Is there a particular decision you think the world is still paying for? Let us know down in the comments.

[a]lah DAYKA-dah pare-DEE-duh https://forvo.com/search/La%20D%C3%A9cada%20Perdida/ OR https://translate.google.ca/?sl=es&tl=en&text=La%20D%C3%A9cada%20Perdida&op=translate
[b]PEP-far https://youtu.be/0go_6dpBWT4?si=xEY8_7QtSWLl6pFL&t=19
[c]ECK-sawn val-DEEZE https://youtu.be/ZPbuGH3HAu8?si=gbt46og76QiCL5JR&t=713
bly reef https://youtu.be/ZPbuGH3HAu8?si=_8MsCTs-gZxSsm97&t=398
[d]ear-RON pls!
[e]PRIP-yit https://forvo.com/search/%D0%9F%D1%80%D0%B8%D0%BF%27%D1%8F%D1%82%D1%8C/
[f]peeno-shay https://youtu.be/K2m-fkYAWQU?si=lAtJvg7AOrCDe8r_&t=32
CHEE-lay (I use the pronunciation that says it's by someone from Chile) https://forvo.com/word/chile/#es
muh-BOO-too https://youtu.be/g_ZKYiaqUZQ?si=WoLG06oL4WGAs7jo&t=6
zye-EAR https://forvo.com/word/zaire/#en
fur-din-nand MAR-cose ("cose" rhymes with "dose") https://youtu.be/H3AN7MCyOa4?si=oUAkPUo32-yWQyxl&t=105
ear-RON and ear-ROCK pls!!