Served two terms as
Reagan’s VP
 Promised to continue
Reagan’s policies with
greater compassion in
dealing with homeless
and poor
 Promised to improve
education and fight
drug use
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Previous experience
mainly in foreign policy
Had to reduce growing
budget deficit
Events in E. Europe and
Soviet Union permitted
cuts in military spending
Late 1990, promised
increase income taxes on
wealthy but never able
to make big reduction in
budget deficit

Impact of defense
spending on US
economy
 Experts disagree on impact
 Can provide short-term
stimulus
 Can also divert resources
from more productive uses
 Heavy military spending
can mean less investment
in peacetime projects

Supreme Court
Appointments
 Made several
appointments to
Supreme Court, leading
to conservative majority
 Toughened rules for
criminal defendants,
reduced scope of
abortion rights, and
introduced other
important changes

Recession
 US gradually moved back into
recession
 Economics blamed on reduced
spending by consumers,
corporations, and fed and state
govts
 Greater foreign competition
led to less demand for some
American products
 1970s-1980s saw increase
population in Sunbelt, opposite
for “Rust Belt”
▪ Areas of NE and Midwest with
coal and iron
▪ Collapse of US steel industry to
steady loss of manufacturing jobs
to Mexico and overseas

Civil Rights and Civil
Unrest
 Recession hard on young
African Americans
 Riots in Los Angeles and
other cities in 1992 when
jury found policeman not
guilty even though
videotaped beating young
African American Rodney
King
 Several killed
 Riots highlighted plight of
minorities and continuing
racial tensions

Americans with
Disabilities Act 1990
 Prohibited
discrimination against
people with disabilities
in employment and
public accommodations

Invasion of Panama,
1989
 Bush took steps against
Panamanian dictator and
drug-dealer Manuel
Noriega
 Sent US forces to Panama
where restored
democratically elected
leaders
 Noriega captured and
taken to US where tried
and convicted on drug
charges

End of the Cold War, 1989-1991
 1989-1991, E. Europe moved from
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Communism to democracy
Berlin Wall torn down and
Germany reunited
1991 – Soviet Union dissolved and
replaced by Commonwealth of
Independent States
Bush recognized Russia and other
newly independent republics and
offered economic assistance
http://youtu.be/7z6dxQVhE8o
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Gulf War, 1990
 August 1990 Iraqi leader
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Saddam Hussein invaded
Kuwait for oil and to extend
Iraq’s borders
Hussein refused requests
from UN to withdraw
UN forces under US
leadership launched attack
against Iraq
Invasion succeeded in a few
days
Feb 1991, Hussein agreed to
remove all troops from
Kuwait and pay for damages

Gulf War, 1990
 Bush declared cease-fire
but refused to remove
Saddam from power
 First major challenge to
world order after Cold
War
 American prestige in
Middle East greatly
enhanced
▪ Bushed used this to initiate
peace talks between Israel
and neighbors in late 1991

Somalia
 1992 – Bush began
humanitarian airlift of
food and supplies to
Somalia in NE Africa
 Local warlords and
bandits continued to
steal supplies, Bush sent
US troops in final month
of Presidency
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Bill Clinton from poor Arkansas
background
Attended Yale Law School and
met wife Hilary Clinton
Governor of Arkansas
1992 – successfully united
different groups within
Democratic Party and attract
independent voters
Bush not doing enough to fight
recession
Third party candidate Ross Perot
furthered weakened Bush’s
authority
Perot received 20% of vote,
making him most successful
third party candidate in history
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Clinton promised agenda
of reform
Found difficulty obtaining
Congressional support
Clinton had trouble
passing early budgets
First budget limited fed
spending, increased
income taxes to 40% for
richest Americans, cut
taxes for low-income
Americans, and introduced
fed gasoline tax

Health Care Reform
 Promised to reform health care in
campaign
 Give every American health
insurance
 Hilary to head task force on health
care
▪ Leading advocate for better health
insurance for uninsured and
underinsured Americans
 Many plans proposed but none
passed by Congress
 Opponents feared Clinton’s
proposal might to lead long waits
and health care rationing
 Supporters shocked many
Americans lacked health care
 Major defeat for Clinton

Other policies
 “New Democrat”
 Supported welfare reform,
free trade, lower taxes on
middle class, and tough
measure on crime
 Passed bull that increased
funds for police depts, 5
day waiting period on
buying handguns,
increased fed money for
prisons, and banned sales
of assault weapons

Economic Recovery
 Made easier to export
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computers and other high
teach goods abroad by
removing Cold War restrictions
Helped grow computer-related
industry and restore economy
Reduction of military spending
and closed military bases also
boosted civilian economy
Unemployment down,
spending was up, and business
profits at all-time high by end
of presidency
1999 – Clinton balanced
nation’s budget and had
surplus

Contact with America
 1994 – Newt Gingrich, Republican
Speaker of the House, proposed
program of conservative principles
in Contract with America
▪ Book length contract endorsed by
most Republicans in attempt to win
House during mid-term elections
▪ Argued that fed govt was too large and
no longer responsive to people
▪ Fed programs took away personal
responsibility from families and
individuals
▪ Sought to restore balance between
govt and citizens
▪ Many provisions concerned conduct of
Congress
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Clinton had scandal in second
term in office
Senate conducted second
impeachment trial of
President
Sexual affair uncovered
between Clinton and White
House intern
Clinton had lied under oath
about the affair
Impeached by House but 2/3
vote in Senate to remove
Clinton from office felt short
Americans felt they could not
trust elected leaders

Yugoslavia, Bosnia, and
Kosovo
 Yugoslavia in the Balkan
Peninsula formed by joining
several ethnic groups
together after WWI
 Catholic Croats in SW,
Bosnian Muslims in SE,
Orthodox Christian Serbs in N
 End of Cold War renewed
tensions which divided into
separate states
 Dissolution of Yugoslavia was
accompanied by fierce
fighting between Muslim
Bosnians and Christian Serbs

Yugoslavia, Bosnia, and
Kosovo
 Serbs attempted to
massacre Muslim civilians
in parts of Bosnia and
Kosovo as part of “ethnic
cleansing”
 Genocide like Holocaust
might be repeated
 Clinton helped negotiate
peace in Bosnia after use
of NATO airstrikes against
Serbia
 Clinton’s intervention led
to compromise peace

Participation in International
Organizations
 Originally negotiated with
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President Bush, NAFTA (North
American Free Trade Agreement)
was push through Congress
New trade association with Mexico
and Canada
Phased out tariffs between 3
countries
Most economists believe free trade
stimulates economy
Critics says led to loss of
manufacturing jobs where labor is
cheaper and other countries don’t
have the same regulations and
laws

Participation in
International
Organizations
 GATT (General Agreement
on Tariffs and Trade)
formed in 1947 to further
trade
 1994 replaced with World
Trade Organization
▪ Establishes rules for global
trade and help to settle trade
disputes
▪ Accelerated globalization

Participation in
International
Organizations
 Also in United Nations
(UN), NATO, SEATO
(Southeast Asia Treaty
Organization), APEC
(Asia-Pacific Economic
Cooperation), and PAS
(Organization of
American States)
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China
 Clinton tried to protect human
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rights in China by proposing trade
link
Abandoned policy when had no
effect on China except hurting US
economic interests
Continued to press for human
rights reform but separate from
trade
1999 US missiles accidently hit
Chinese embassy in Yugoslavia
Chinese nationalists marched on
US embassy in Beijing
No attempt to halt US-Chinese
trade
US officials helped China join WTO
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Russia

 Both Clinton and H.W. Bush
 Haitian military leaders threw out
maintained friendly relations w/
Russian President Boris Yeltsin

Jean-Bertrand Aristide, a priest
who won UN supervised free
elections in 1990
 Clinton sent US troops to Haiti,
resulting in his return to power in
1994
Israel
 Clinton administration worked for
peace between Israel and PLO and
Jordan
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Somalia
 US and UN unable to end fighting
with rebel war lords
 Clinton withdrew US troops when
no further progress in sight
Haiti

Iraq
 Clinton airlifted US troops to
Middle East to pressure Saddam
Hussein to withdraw Iraqi troops
from along Kuwait border
 Later took steps to force Hussein to
allow UN inspectors into Iraq to
continue inspections for nuclear
and biological weapons

Bill Gates

 Co-founded of Microsoft
 One of first to recognize
 First Africa-American billionaire
 Founded of Black
potential of personal computer

Entertainment Television
 BET became first AfricanAmerican managed company
listed on New York Stock
Exchange
Sam Walton
 1962 created own five-and-
dime store in Arkansas
 Vision to create chain store
offering variety of products at
low prices
 Walmart and Sam’s Club
world’s largest retailer
Robert Johnson
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Lionel Sosa
 Saw potential in Hispanic
market
 Founded the largest Hispanic
advertising agency in US
 Also advised several Republican
Presidents
Son of former
President George H.W.
Bush
 Governor of Texas
from 1995-2000
 Nov 2000, became
President after
winning majority of
Electoral College in
closest Presidential
election in US history
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Al Gore was Clinton’s vice
president
Democrats weakened by
Clinton’s impeachment
scandal
Gore hurt by third party
candidate Ralph Nader
and downturn of
American economy
Bush did better than
expected n Presidential
debates
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Gore won popular vote by
half a million votes
Some states margin so
narrow winner of Electoral
College remained unclear for
weeks
Bush appeared to have
narrow lead in Florida,
pending a final count
If either candidate won
Florida, where Bush’s brother
was Governor, it would be
enough to win
Bush had carrier state, but
after mandatory recount,
lead was fewer than 1,000
votes
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Thousands of voters had
not punched in holes of
paper ballots to indicate
candidate which led to
question of accuracy
Gore demanded a
recount by hand in four
Florida counties
State officials refused
and were supported by
lower state court
 Certified Bush had won
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Gore appealed to Florida Supreme
Court which demanded a statewide
recount
Bush appealed to US Supreme Court
5 to 4 vote, SC ruled an order to end
the recount
Florida Supreme Court had instruct
those making the recount to
evaluate the voter’s intent in cases
where ballot was not fully punched
in
SC objected to this, arguing there
was no consistent standards
Critics felt SC had voted along party
lines – 5 conservative vs 4 liberal
Some felt it was acting against the
will of the people, as expressed in
the popular vote
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Bush pushed through tax cut to
revitalize economy
Federal Reserve Board dropped
interest rates to lowest levels in
decade
Revived economy but brought
return to high federal deficits
Cuts mainly favored the wealthy
but Bush said cuts were needed
to get economy growing
Bush introduced No Child Left
Behind, requiring all states to
test all students in English and
math each year from 3rd to 8th
grade
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September 11, 2001, Islamic
Fundamentalist terrorists used planes to
crash into the World Trade Center in New
York City and Pentagon in Washington, DC.
Final plan crashed in Shanksville,
Pennsylvania
3,000 people killed, worst attack in US
history
Osama bin Laden and organization alQaeda took credit for attacks
Bin Laden from wealthy Saudi Arabian
family
Soviet invasion in 1979 stirred Bin Laden to
recruit Islamic soldiers from around the
world
Bin Laden was sheltered by Taliban
controlled govt of Afghanistan after the
attack
Taliban refused to surrender bin Laden
Bush vowed to launch
global “War on Terror”
 Oct 2001, Bush
ordered air and ground
assaults which toppled
Taliban and destroyed
al-Qaeda’s bases
 Osama bin Laden
eluded capture
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Took steps to curb terrorism at
home
New federal agency,
Transportation Security Agency
(TSA) took over security at US
airports
 All passengers and luggage
subjected to thorough screening

2003 – new cabinet post,
Department of Homeland
Security
 Keep US safe from all threats
 Range from nuclear detection and
intelligence coordination to
protection of high-level govt
officials

USA PATRIOT Act of 2001
 Greatly expanded govt’s law
enforcement powers
 Some 9/11 terrorists trained as
pilots in US
▪ Had cell phones, computers, and bank
accounts funded by international
terrorists
 Law enforcement power to
conduct sweeping searches and
surveillance, detain immigrants,
and monitor bank accounts
 Bush authorized National Security
Agency (NSA) to wiretap
suspected callers w/out first
obtaining a warren
 Some felt it gave Executive Branch
too much power
 “Warrantless” wiretaps later held
unconstituional

Imprisoned suspected terrorists
captured at Guantanamo Bay in
Cuba
 Rights required by US Constitution
did not given to accused
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Prisoners on hunger strikes
force-fed
Department of Justice believed
limited torture techniques like
water-boarding were justified to
get info
Critics felt torture is rare
successful or necessary
Claimed prisoners treated
inhumanely
Wished to see Guantanamo Bay
closed
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Bush and advisors feared dictator
Saddam Hussein might provide
weapons to terrorists
Hussein had used chemical
weapons in 1980s
Hussein denied having Weapons of
Mass Destruction (WMD)
First refused to let UN inspectors in
UN inspectors found no WMD

Some question if investigation
thorough enough
US, Britain, and Spain warned Iraq
to surrender weapons
 France, Germany, and Russia
favored more cautious approach
 American leaders feared delay
would allow him to hide weapons
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Bush gave Hussein 48 hours to leave
Iraq or face invasion
Hussein rejected
Coalition forces took action
US began campaign w/ air strikes
Early April US forces captured
Baghdad
Hussein’s dictatorship quickly
collapsed
Hussein captured, tried for crimes
against Iraqi citizens, and executed
by Iraqis in 2006
Set up provisional govt in Iraq
Early 2005 Iraqi voters elected
representatives to draw up
constitution
Newly elected Iraqi national govt
took power becoming first Arab
democracy in Middle East
War far from over
Insurgency consisting of
former supporters of
Hussein, Shiite radicals, and
Iraqis angry at foreign
intervention arose
 Differences between ethnic
groups of Iraq added to
conflict
 Iraqi prisoners at Abu Ghraib
prison were tortured and
humiliated
 President Bush ran for
second term against Senator
John Kerry, outspoken critic
of the war
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End of 2006, as many as
1,000 people still being
killed each month in Iraq
Bush announced new
“surge” strategy,
sending more than
20,000 additional US
troops
Surge greatly reduced
violence in Iraq
American withdrawal
from Iraq became
central issue in 2008 US
Presidential election
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Also in Bush’s second term
Hurricane led to evacuation and
flooding of almost 80% of New
Orleans and other parts of Guild
Coast
Storm surge greatly exceeded
engineering design of New
Orleans levees
Costliest hurricane in history
More than 1,800 people died in
flooding
 One of deadliest natural disasters
in America’s history

Rescue efforts delayed so many
found themselves stranded
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Stock market dropped
sharply in 2000, Federal
Reserve lowered interest
rates to stimulate the
economy
Many took advantage to buy
new homes
Some banks lent money to
borrowers who could not
afford their homes
House prices rose, leading to
speculation in housing
Mortgages were bundled
with other investments and
sold to banks or investors
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2007 – overbuilding led to
falling house prices
Some had special
mortgages that adjusted
to higher interest rates
Interest rates rose, some
homeowners couldn’t
afford mortgages
Led to rising number of
home foreclosures
Federal govt gave rebates
to taxpayers and
businesses in Feb 2008 to
stimulate the economy
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Sept 2008- fed govt took
over the nation’s largest
mortgage lenders
Despite actions, financial
crisis spiraled out of
control
Several securities and
investment firms showed
signs of collapsing
Govt allowed investment
firm of Lehman Brothers
to fail
Banks stopped lending and
credit dried up for
individuals and businesses
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Oct – Emergency
Economic Stabilization Act
(2008) authorized the
Secretary of Treasury to
spend up to $700 billion to
buy distressed
investments and to
provide funds to banks to
prevent them from failing
Treasury and Fed Reserve
provided emergency
funding to insurance giant
AIG, several brokerage
houses, and the nation’s
largest banks
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One of the hardest fought in
US history
Hilary Clinton seen as early
Democrat forerunner
Barack Obama emerged as
nominee after one of the
closest primary elections in
history
Republicans nominated John
McCain – distinguished war
record and former POW in
Vietnam
Obama received boost when
Oprah Winfrey publicly
endorsed him
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Promised health care reform
Appealed to young people
and African Americans
Called to close Guantanamo
Bay, promised citizenship for
millions of undocumented
aliens, and spoke against tax
cuts for wealthiest Americans
Obama became first AfricaAmerican elected President
Campaigned for change
Most costly Presidential
campaign in US history
Grassroots campaign
through internet

April 2009 – American
Recovery and Reinvestment
Act
 More than $700 billion spent in
bailout package to create new
jobs, save existing ones, spur
economic activity, and invest in
long-term infrastructure
development
Passed legislation to regulate
credit cards, lending, and
other banking practice
 Took steps to save US auto
industry
 Health care reform passed

Sonia Sotomayor first
Hispanic Justice and
third women on US
Supreme Court
 Later Obama named
Elena Kagan to US
Supreme Court

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Pakistan
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Gradually withdrew troops
Acts of terrorism still continue against
Iraqi govt
Increased level of US troops in effort to
stabilize country
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Iran continues to develop nuclear
weapons despite increased economic
and political sanctions
Iran sponsors terrorist groups in Middle
East

Obama discouraged dictators from
using force to suppress democracy
movements in Tunisia, Yemen, Syria,
and Egypt
In Library, authorized airstrikes to
defend rebels, leading to Gaddafi’s
downfall and death
Israel

Iran
Maintained close ties w/ Europe
European Union experienced own
financial crisis similar to US
“Arab Spring”
Afghanistan
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Europe
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Iraq
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Encouraged Pakistan to take more
aggressive stance in fighting terrorism
US troops entered Pakistan and were
able to track down and kill Osama bin
Laden

Seeks to work w/ Israelis and
Palestinians to achieve two-state
solution – Jewish state and Palestinian
state living side-by-side in peace
China

Continues to export large number of
goods to Americans while investors buy
great deal of US Treasury Notes