Period 9 Notes. Coach Hoshour

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1 Unit 9: 1980-present Chapters Election 1988 George Bush Republican ,946,000 Michael S. Dukakis Democratic ,016, Domestic Issues The Only Remaining Superpower As a result of the end of the Cold War, the United States became the world s only superpower. Berlin Wall comes down in 1989 Consequently, the United States not only had a greater responsibility for maintaining world peace in the face of regional conflicts, but in the process also aroused resentment. Middle East Relations The United States continued to exercise leadership in the Middle East, an area of vital concern because of its vast oil resources and American dependence on foreign oil. First Persian Gulf War President George H.W. Bush led the world in the resolution of the Iraqi invasion of Kuwait in the early 1990s. The first Persian Gulf War had the support of many of the other nations of the world and resulted in a quick military victory which restored the independence of Kuwait. Results of Persian Gulf War The prompt withdrawal of U.S. military forces from Iraq did not alter the balance of power in the Middle East, but the presence of United States troops in bases in Saudi Arabia aroused the enmity of religious fanatics. These joined with other fanatic religious fundamentalists groups, particularly the Taliban that had driven the Soviets out of Afghanistan, to form terrorist groups such as al Queda. Election 1992 William J. Clinton Democratic ,908,254 George Bush (I) Republican ,102,343 Election 1996 William J. Clinton (I) Democratic ,590,703 Robert Dole Republican ,816, Domestic and Foreign Issues Clintons Foreign Policy The United States continued to support Israel while at the same time working

2 diplomatically to resolve the problems of the Middle East as related to the occupied territories and the rights of the Palestinian people. This course of action resulted in some initial success until hardliners in Israel and in the PLO gained power and negotiations stalled. The United States also brokered a peace in Northern Ireland and forced the military to give up power to the democratically elected president in Haiti. The US humanitarian efforts in Somalia were undermined by the Black Hawk Down incident and the US withdrew its forces from the area. The United States, with the support of NATO, intervened in the civil war in the Balkans, bringing ethnic cleansing there to a halt and helping to negotiate a peace. Clinton s Domestic Policy In the 1980s, yearly budget deficits contributed to an accumulating national debt. Deficits caused by defense spending Thus, budget deficits and recession were campaign issues in the early 1990s. The Clinton administration passed a deficit reduction plan that included: a tax increase Spending cuts the establishment of the earned income tax credit. Clinton s Domestic Policy Welfare reform legislation reversed decades of policy dating back to the New Deal, however, health care reform did not pass. President Clinton and the Republican Congress fought over how to both balance the budget and stimulate the economy. The Federal Reserve kept inflation in check and stimulated the economy by managing interest rates. Resulting economic growth brought low unemployment; but, the gap between rich and poor called income polarization, continued to widen. The national debt lessened as the world experienced the end of the Cold War and the peace dividend. When Clinton left office there was a budget surplus and the national debt was shrinking. Clinton s Impeachment How Technology Impacted the US in the 90 s This time period saw tremendous growth in the use of computers, the internet, e- bay, , pagers, computer games, and cell phones by a large portion of the population. This brought changes to society, privacy laws, and communication networks in the United States and around the world. The rapid rise and fall of the dot coms and other computer industries caused a stock market adjustment in the late 1990s. The worldwide web and satellite communication promoted the outsourcing of service jobs to places such as India. Globalization: Economic Change The 1990s also saw economic changes that challenged the economic leadership of the United States in the world.

3 The European Common Market developed into the European Union to provide political cooperation as well as promote trade and the development of the European economy. A majority of members of the EU adopted a common currency. In the Western Hemisphere, the North American Free Trade Agreement (NAFTA). Globalization: NAFTA Trade Agreement (NAFTA) attempted to increase trade by eliminating trade barriers and this policy created political controversy about its economic impact. The 1994 GATT (General Agreement of Tariffs and Trades) lowered tariffs around the world. United States industries experienced greater competition. Globalization: Results of NAFTA Although some jobs were created as a result of NAFTA, others were lost. Outsourcing resulted in economic hardship for some American workers. Mechanization and globalization caused a loss of manufacturing jobs in the United States and a shift to jobs in service industries. Added to this problem was the influx of immigrants who were willing to work at menial jobs for low wages and the resulting controversy over immigration policies impacted politics. With a loss of manufacturing jobs, labor unions experienced a further decline in membership and influence as their workers faced competition from overseas, new immigrants, and further mechanization of the manufacturing process. Election 2000 George W. Bush Republican ,456,062 Albert Gore, Jr. Democratic ,996, Election 2004 George W. Bush Republican ,039,073 John F. Kerry Democratic ,027,478 Foreign and Domestic Issues Rise of Global Terrorism The United States continued to monitor and control the regime of Saddam Hussein in Iraq, the Taliban in Afghanistan and a growing terrorist threat. Attacks on the following signaled the rise of global terrorism World Trade Center the USS Cole United States embassies in Africa Sept 11, 2001 In 2001, terrorists flew airplanes into the World Trade Center in New York City

4 the Pentagon in Washington, D.C. Another attack was thwarted by passengers and the airplane crashed in Pennsylvania. The United States linked the attack to al Qaeda and, with the support of the world, invaded their stronghold in Afghanistan, overthrowing the Taliban government that gave the terrorist organization sanctuary there. The United States did assassinate the al Queda leader, Osama bin Laden in Iraq (Second Persian Gulf War) The administration of George W. Bush believed that there was evidence that Iraqi leader Saddam Hussein was in possession of weapons of mass destruction(wmd). The United States, with the help of Great Britain and a few other countries, invaded Iraq to overthrow Hussein and bring democracy to that country. No weapons of mass destruction were found. Saddam Hussein was captured by United States forces, tried by an Iraqi Special Tribunal for crimes against humanity and executed. Although the military action resulted in the overthrow of the Sunni-dominated government of Hussein and the election of a new more democratic government, it did not result in peace. United States forces continue to be under attack by militias that support the various religious factions in Iraq. The Middle East continues to be in turmoil. George W. Bush s Domestic Policy During the George W. Bush administration, tax cuts for the wealthy designed to stimulate the economy further increased economic disparity. When the United States became involved in wars in Afghanistan and Iraq in the post 9/11 era, defense spending climbed and the United States again experienced deficit spending and escalating debt. Patriot Act The act, as a response to the terrorist attacks of September 11th, significantly reduced restrictions in law enforcement agencies' gathering of intelligence within the United States; expanded the Secretary of the Treasury s authority to regulate financial transactions broadened the discretion of law enforcement and immigration authorities in detaining and deporting immigrants suspected of terrorism-related acts. The act also expanded the definition of terrorism to include domestic terrorism, thus enlarging the number of activities to which the USA PATRIOT Act s expanded law enforcement powers can be applied. Great Recession The housing bubble burst and the Bush administration turned to deficit spending to stop the decline. Fannie Mae and Freddie Mac Community Reinvestment Act 1995 Everyone deserves a house Bush s administration initiated a stimulus package and a bail-out for banks to forestall a deepening recession.

5 The unemployment rate topped ten percent. Tax revenues fell and deficits grew. This Great Recession saw the worst economic conditions since the Great Depression of the 1930s as people lost their jobs and their homes. Election 2008 Barack H. Obama Democratic ,456,897 John S. McCain Republican ,934,814 Middle Eastern Policy During the Arab Spring of 2011 the United States provided diplomatic support to those protesting for more democratic institutions and gave air support to the Libyan pro-democracy forces. Middle Eastern Policy Relations with Iran continue to be strained because of the Iranian development of nuclear capability. The United States continues to try to mediate the issue of a Palestinian state with little success [Clinton and Obama]. The Middle East continues to be a major area of concern for American foreign policy. Second Stimulus Package The Obama administration passed this in an effort to jump- start the economy. Conservative critics objected to deficit spending because it raised the national debt. However Congress did not repeal the Bush tax cuts for the wealthy to bring in more revenue to help to balance the budget. Affordable Health Care Act Health care legislation was passed by the Democrat controlled Congress during the Obama administration but continues to be politically controversial. Economy Today Although most economists have declared that the Great Recession has ended, lack of confidence in the economy because of: political wrangling The worsening debt crises in Europe continue to dampen consumer spending. Many Americans remain unemployed, despite: low interest rates significant cash in the hands of businesses. Currently deficits and debt continue to grow as does the gap between the rich and the poor. Conservatives and liberals continue to seem unable to find a compromise solution and the political extremes control the debate.

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