Chapter 22
Section 4
The End of the Cold War
Keeping Reagan’s Policies
• President Reagan left
office in 1988, but most
Americans wanted his
domestic policies of low
taxes and less
government action to
continue.
Presidential Election of 1988
• Vice President, George H.W.
Bush promised not to
impose new taxes.
• He was selected to
represent the Republicans
• Democrat nominated
Michael Dukakis, he
promised to help workingclass Americans, minorities,
and the poor.
• George Bush easily defeated
Michael Dukakis, who was
portrayed as too liberal and
“soft on crime”.
Perestroika
• President Bush continued
Reagan’s policies with the
Soviets.
• Soviet leader Gorbachev
tried to save his country’s
economy by instituting
perestroika or
“restructuring” and
allowing some private
enterprise and profit
making.
Glasnost
• Gorbachev also
instituted glasnost or
“openness,” which
allowed more freedom
of religion and speech,
allowing people to
discuss politics openly.
• Glasnost spread to
Eastern Europe.
Overthrow of Communism in Eastern
Europe
• Revolutions overthrew
Communist leaders in
Poland, Hungary,
Romania,
Czechoslovakia, and
Bulgaria.
Fall of the Wall
• In November 1989 the
gates at the Berlin Wall
were opened.
• Bulldozers leveled the
wall, and East and West
Germany reunited.
End of the Soviet Union
• In August 1991 some
Communist leaders tried to
take over the Soviet
government.
• Russian president Boris
Yeltsin defied the attempt.
• Soon, all fifteen Soviet
republics declared their
independence.
• In December 1991
Gorbachev announced the
end of the Soviet Union.
The Cold War was over.
After the Cold War,
President Bush noted the
arrival of a “new world
order.”
Tiananmen Square
• His first crisis occurred in
China.
• In May 1989, the Chinese
government crushed a
student protest in
Tiananmen Square.
• The Chinese arrested
thousands or protestors,
some of them received
death sentences.
The World’s Response to China
• In response, the United
States and several
European countries to
halt arm sales and
reduce their diplomatic
contacts with China,
and the World Bank to
suspend loans.
Panama
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A crisis also developed in Panama.
The United States, under President
Jimmy Carter had agreed to hand
over control of the Panama Canal,
so it wanted to be sure Panama’s
government was stable and proAmerican.
The dictator, Manuel Noriega,
would not cooperate with the
United States.
In late 1989, U.S. troops invaded
Panama and arrested Noriega.
Noriega stood trial on drug charges
in the United States.
– U.S. troops helped the Panamanians
hold elections.
Kuwait Invaded
• In August 1990, Iraq’s
dictator Saddam
Hussein sent his army
to invade oil-rich
Kuwait.
• President Bush
persuaded other
nations to join in a
coalition to stop
Hussein.
Persian Gulf War
• On January 16, 1991,
coalition forces launched
Operation Desert Storm.
• After about six weeks of
bombing and a brief
ground attack, President
Bush declared that Kuwait
was liberated.
• Iraq accepted the
coalition’s ceasefire
terms.
In addition to focusing on
foreign affairs, President
Bush had to address
domestic issues.
Recession
• President Bush had
inherited a growing
deficit and a slowing
economy, and the same
year the Persian Gulf
crisis began, the
economy plunged into a
recession.
• The recession was
partly caused by an end
to the Cold War.
How could the end of the Cold War
lead to a recession?
• The United States began
canceling orders for military
equipment, resulting in the
layoffs of thousands of
defense workers.
• Many companies began
downsizing, or laying off
workers and managers to
become more efficient.
• The federal government
also faced a deficit, and had
to pay interest on its debt.
Trying to fix the Economy
• Bush tried to improve the economy by
suggesting a cut in the capital gains tax.
– This is a tax paid by businesses and investors when
they sell stocks or real estate for a profit.
• He thought it would help businesses.
– Democrats defeated the idea.
Read my lips…
• Bush finally had to
break his campaign
promise of “no new
taxes.”
• Bush’s decision to
improve the economy
with a tax increase
turned many voters
against him.
3 Presidential Candidates in 1992
• Bush was the Republican nominee in the 1992
presidential election.
• The Democrats nominated Arkansas governor
Bill Clinton, who promised to cut taxes and
spending.
• H. Ross Perot ran as an independent
candidate.
Grassroot Movement
• Because Perot was not
from the two major
political parties, a
grassroots movement
took place in which
groups of people organize
at the local level.
• With the help of the
people in the grassroots
movement, Perot was
placed on the ballot in all
50 states.
Results of the 1992 Election
• Bill Clinton wins, he is
the first person from
the “baby boom”
generation to enter the
White House.