Standard 8.0- Demonstrate an understanding of social, economic and political issues in contemporary America. Opening: Reading Journal 8.5 Work Period: Conservatism Notes Reagan Notes Closing: Quiz
Globalization Globalization is the growing trend towards expansion and integration of worldwide trading networks
How is the US impacted? Economic issues further intensified the confrontation between conservatives and liberals in the past 25 years US is the foremost economic power after WWII Greatly affected by fluctuations in world oil prices
European Cooperation In the 1990s the European Common Market developed into the European Union to provide political cooperation Promoted democracy, trade, and the development of European economies Majority of members adopted a common currency
North American Cooperation NAFTA (North American Free Trade Agreement) attempted to increase trade by eliminating trade barriers in the Western Hemisphere 1994 GATTS (General Agreement of Tariffs and Trades) lowered tariffs around the world
Impact of Globalization Due to globalization 1. The US industries are experiencing greater competition 2. Industries were growing unfavorable balance of trade 3. Outsourcing of jobs to foreign countries led to unemployment for some American workers
Rise in Technology Increased uses of technology (computers, cell phones, e-bay, email, etc.) brought about societal changes Satellite and internet communication promoted outsourcing of some jobs to places like India. Globalization and mechanization are causing a loss of manufacturing jobs and continues the shift of jobs to the service industry
Movement of Jobs There is competition for jobs as there is an influx in immigrants who are willing to work for low wages (sparked immigration controversy) Labor unions experienced a decline in membership with the loss of jobs and increased competition Move from industries from the rust belt to the sun belt meant a big population shift to the right-to-work states
Education System Globalization also raised questions about the education system and how well students can compete with students in other countries No Child Left Behind was passed through George W. Bush State mandates that students are tested to see if they meet increasingly difficult goals to demonstrate academic proficiency
Demographic Changes Economic conditions make it more likely that both parents have to work Demand for day care and fast food has grown Obesity increased
Medical Changes Medical advances prolong life for Americans Aging population leads to rising health care costs and health insurance costs Many Americans lose their health insurance as companies drop benefits to maintain competitiveness Lack of basic healthcare increases the burden on Emergency Rooms and makes health care costs rise
The attempt to pass health care legislation under Clinton was met with intense Republican opposition and did not pass Health care legislation was passed by Obama and a Democrat-controlled Congress Continues to be politically controversial
Social Security There is also political controversy over Social Security Baby boomers
In the 1980 s yearly budget deficits contributed to accumulating national debt Mostly spent on defense This was a campaign issue during the early 1990s Budget Deficits
Activity Globalization
Elected in 1992 Clinton s Presidency Introduced welfare reform legislation Modified decades of policy dating back to the New Deal Fought with Republicans about how to balance the budget and stimulate the economy
Clinton s Impeachment Problems between parties was evident in continuous investigations of Clinton by special prosecutors Reached a peak when the Republican-controlled House of Reps tried to impeach Clinton Clinton maintained that he had not committed an impeachable offense Tried by the Senate who refused to convict Clinton remained in office
Debt Reduction Deficit reduction plan Increased taxes Cut spending Establishment of the earned income tax credit was passed The Federal Reserve kept inflation in check and stimulated the economy with interest rates
Economic Growth Economic growth brought low unemployment, but the gap between the rich and poor continued to grow When Clinton left office there was a budget surplus and the national debt was shrinking
Outcome remained undecided for several weeks as Democrats and Republicans contested the counting of ballots in Florida 2000 Election Supreme Court stopped the recount and George W. Bush won the election
Bush s Economic Policies Tax cuts for the wealthy were designed to stimulate the economy but further increased economic disparity and eventually budget deficits When the US became involved in the wars in Afghanistan and Iraq defense spending climbed US again experienced deficit spending and escalating debt
Economic Decline At the end of the Bush administration the housing bubble burst and the Bush administration turned to deficit spending to stop the decline Stimulus package and bailout for banks were used to forestall a deepening depression
Unemployment rates hit 10% Tax revenues fell and deficits grew Great Recession This Great Recession saw the worst economic conditions since the Great Depression of the 1930s
Election of 2008 Came amid these worsening economic conditions Barack Obama was elected Obama administration passed a second economic stimulus package in an effort to jump-start the economy
Economic Policies Conservative critics objected as deficit spending increased the national debt However Congress did not repeal the Bush tax cuts for the wealthy to help balance the budget
End of the Great Recession Economists have declared the Great Recession has ended Lack of confidence in the economy because of political wrangling and the worsening debt crises in Europe continue to dampen consumer spending
Currently: Current Situation 1. Deficits and debt continue to grow 2. Many Americans remain unemployed despite low interest rates and significant case in the hands of businesses 3. Gap between rich and poor continues to grow 4. Conservatives and liberals seem unable to find a compromise 5. Political extremes control the debate
Activity Clinton Administration Bush Administration Obama Administration
Quiz time! Assessment