1. America’s History Seventh Edition CHAPTER 31 National Dilemmas in a Global Society, 1989-2011 Copyright © 2011 by Bedford/St. Martin’s James A. Henretta Rebecca Edwards Robert O. Self

2. I. America in the Global Economy A.The Rise of the European Union and China 1. Europe nations formed the EU in 1992, moving toward the creation of a single federal state (similar to U.S.) EU included more than 20 countries, 450 million people introduced single currency (euro) in 2002. 2. China 2000-2008 quadrupled its gross domestic product embraced capitalism by producing inexpensive products for consumer markets relationship with China negatively impacted manufacturing in the U.S. by providing inexpensive products manufactured in China instead of American-made products for sale in U.S.

4. I. America in the Global Economy B.An Era of Globalization 1. International Organizations and Corporations “Group of 7” (leading capitalist industrial nations) joined together to better manage global economic policy Russia added in 1997, creating the “G-8”: U.S., Britain, Germany, France, Italy, Japan, Canada, Russia 1993 U.S., Canada, Mexico signed North Atlantic Free Trade Agreement (NAFTA) to create a free-trade zone in North America corporations sought cheap labor (“outsourcing”) in Mexico, Eastern Europe, Asia (ex: Nike manufacturing in Vietnam and China). 1.Financial Deregulation – U.S. and Britain called for deregulation of banks, brokerage houses, investment firms, financial markets; led to high profits but a more fragile economy. 2. Financial Deregulation

5. I. America in the Global Economy B.An Era of Globalization 2. Financial Deregulation U.S. and Britain called for deregulation of banks, brokerage houses, investment firms, financial markets led to high profits but a more fragile economy.

8. I. America in the Global Economy C.The New Technology 1. World Wide Web use of personal computers increased with the introduction of the World Wide Web by 1980s e-mail was spreading to universities, businesses, general public by 2009 75% of all Americans used the Internet. 2. Leisure and Business Products creation of new leisure and business products videocassette recorders (VCRs), compact disc (CD) players, cellular telephones, fax machines, digital cameras, wireless telephones decline of traditional printed newspapers.

10. II. Politics and Partisanship in a New Era A.An Increasingly Plural Society 1. New Immigrants population 203 million in 1970 280 million in 2000 immigrants accounted for approximately 28 million of this increase (25 million from Latin America) Immigration and Nationality Act of 1965 had created opportunity for immigrants to enter country more easily approximately 700,000 refugees from Southeast Asia following Vietnam War (Vietnam, Laos, Cambodia). 2. Multiculturalism and Its Critics

11. II. Politics and Partisanship in a New Era A.An Increasingly Plural Society 2. Multiculturalism and Its Critics “illegal aliens” a topic of debate as conservatives (ex: Patrick Buchanan) warned Americans of an “invasion” of illegal aliens from Mexico initiatives in states with large immigrant populations to make English the official language (ex: CA) debates over affirmative action (ex: CA, MI) and bilingual education (ex: CA).

15. II. Politics and Partisanship in a New Era B.Clashes over “Family Values” 1. Abortion debate continued between “pro-life” (claiming rights for the unborn fetus) and “pro-choice” (claiming rights for the pregnant woman) fundamentalist Protestants led antiabortion movement by the 1980s state laws required limitations on public funding for abortions, parental notification for minors wanting an abortion, mandated waiting periods. 2. Homosexuality 3. Culture Wars and the Supreme Court

16. II. Politics and Partisanship in a New Era B.Clashes over “Family Values” 2. Homosexuality by 1990s many cities and states had bans on discrimination on the basis of sexual orientation Human Rights Campaign (HRC) campaigned for marriage equality: recognition for same-sex marriage 1998 Congress passed the Defense of Marriage Act, which allowed states to refuse to recognize gay marriage and/or civil unions. 3. Culture Wars and the Supreme Court

17. II. Politics and Partisanship in a New Era B.Clashes over “Family Values” 3. Culture Wars and the Supreme Court cases before the Court: Webster v. Reproductive Services (1989) allowed state governments to limit funding for abortion Planned Parenthood of Southeastern Pennsylvania v. Casey (1992) upheld law requiring 24-hour waiting period before an abortion.

19. II. Politics and Partisanship in a New Era C.The Clinton Presidency, 1993-2001 1. New Democrats and Public Policy Clinton won 43% of vote in 1992 self-proclaimed “New Democrat” with a middle-of-the-road stand on divisive issues effort to enact national health care failed in 1994 leaving 15% of Americans without health coverage by 1998 balanced federal budget achieved with reduction in the federal debt. 2. The Republican Resurgence 3. Clinton’s Impeachment

20. II. Politics and Partisanship in a New Era C.The Clinton Presidency, 1993-2001 2. The Republican Resurgence mid-term elections went poorly for Democrats with Republicans gaining 52 seats in the House Clinton moved right by avoiding major social welfare proposals 1996 Aid to Families with Dependent Children (AFDC) abolished. 3. Clinton’s Impeachment sex scandal when Clinton denied a sexual affair with intern Monica Lewinsky Republicans wanted an impeachment – achieved in the House, failed in the Senate.

22. II. Politics and Partisanship in a New Era D.Post-Cold War Foreign Policy 1. NATO debate over whether to admit former Soviet-bloc nations to NATO including Czechoslovakia, Poland, Hungary, Ukraine, Georgia, Armenia 12 new nations admitted by 2010 dissolution of Yugoslavia led to war and a campaign of ethnic cleansing led by Slobodan Milosevic, a Serbian nationalist NATO intervened by 2008 the former Yugoslavia was seven independent nations. 2. America and the Middle East

23. II. Politics and Partisanship in a New Era D.Post-Cold War Foreign Policy 2. America and the Middle East radical Islamic movements grew in post-Cold War Middle East anger over colonialism by British and French in early 20th century, over U.S. support for Israel and for Iranian shah during revolution radical fundamentalists opposed western imperialism and consumer culture, opposed U.S. presence in Saudi Arabia 1993 radical Muslims bombed World Trade Center in NYC killed six people and injured 1,000+ 1998 terrorists truck-bombed U.S. embassies in Kenya and Tanzania 2000 bombing of the USS Cole in Yemen; Clinton ordered air strikes against Al Qaeda (led by Osama bin Laden) in Afghanistan; threat remained.

24. II. Politics and Partisanship in a New Era D.Post-Cold War Foreign Policy 2. America and the Middle East 1998 terrorists truck-bombed U.S. embassies in Kenya and Tanzania 2000 bombing of the USS Cole in Yemen Clinton ordered air strikes against Al Qaeda (led by Osama bin Laden) in Afghanistan threat remained.

26. III. Into a New Century A.The Ascendance of George W. Bush 1. The 2000 Election Vice President Al Gore won 50.9 million votes, Bush 50.4 million Bush held Electoral College 271-267 hand count demanded in several counties of Florida, which resulted in a month of debate and turmoil Bush v. Gore at in the Supreme Court upheld the victory for Bus VP Richard Cheney participated in much key decision- making in White House, as did campaign advisor Karl Rove. 2. Tax Cuts 3. September 11, 2001 4. The Invasion of Iraq 5. The 2004 Election

27. III. Into a New Century A.The Ascendance of George W. Bush 2. Tax Cuts “Economic Growth and Tax Relief Act of 2001” cut income tax rates, extended income credit for the poor, phased out the estate tax by 2010 additional cuts followed in 2003 federal expenditures increased 33% by 2006 national debt over $8 trillion by 2007. 3. September 11, 2001 4. The Invasion of Iraq 5. The 2004 Election

28. III. Into a New Century A.The Ascendance of George W. Bush 3. September 11, 2001 19 Islamic terrorists hijacked four commercial jets two flown into World Trade Center one into Pentagon one crashed onto Pennsylvania field bound perhaps for White House or U.S. Capitol Bush proclaimed a “War on Terror” U.S. began military campaign against bin Laden’s forces in Afghanistan. 4. The Invasion of Iraq 5. The 2004 Election

29. III. Into a New Century A.The Ascendance of George W. Bush 4. The Invasion of Iraq post-9/11 Bush increased the power of domestic surveillance with the USA Patriot Act; focus on the “axis of evil”: Iran, North Korea, Iraq believed that Iraqi people would abandon Saddam Hussein and embrace democracy administration went to the UN to force Hussein to allow weapons inspections U.S. invaded Iraq in March 2003 damaged relations with U.S. allies France, Germany, Mexico, Canada Britain supported U.S. effort regime collapsed but long-term consequences loomed as Shiites and Sunnis fought each other. 5. The 2004 Election

30. III. Into a New Century A.The Ascendance of George W. Bush 4. The Invasion of Iraq regime collapsed but long-term consequences loomed as Shiites and Sunnis fought each other. 5. The 2004 Election Bush challenged by Sen. John Kerry (D-MA), Vietnam veteran and war hero criticized for his post-service participation in Vietnam Veterans Against the War (VVAW) Karl Rove ignited cultural wars by encouraging anti-gay ballot issues in key states Bush won 286 to 252.

33. III. Into a New Century B.Violence Abroad and Economic Collapse at Home 1. Crisis Management Hurricane Katrina (2005) led to the devastation of New Orleans and surrounding communities war in Iraq became increasingly unpopular in 2006-2007 2008 saw significant decline in the U.S. economy as the Dow Jones Industrial Average lost half its value in less than a year unemployment rose to 10% as housing prices plummeted. 2. The 2008 Election 3. Obama’s Presidency

34. III. Into a New Century B.Violence Abroad and Economic Collapse at Home 2. The 2008 Election Barack Hussein Obama against Sen. John McCain (R-AZ) took place amidst the Bush administration’s efforts to “bail out” the financial industry Emergency Economic Stabilization Act (Oct. 2008) gave $700 billion to largest U.S. banks and brokerage houses. 3. Obama’s Presidency first African American president had ambitious agenda Feb. 2009 passed the American Recovery and Reinvestment Act to provide stimulus money for schools, hospitals, transportation projects efforts to end U.S. military operations in Iraq and re-focus operations in Afghanistan debate over health care and the emergence of a new far- right movement, the “Tea Party.”

35. III. Into a New Century B.Violence Abroad and Economic Collapse at Home 3. Obama’s Presidency first African American president had ambitious agenda Feb. 2009 passed the American Recovery and Reinvestment Act to provide stimulus money for schools, hospitals, transportation projects efforts to end U.S. military operations in Iraq and re-focus operations in Afghanistan debate over health care and the emergence of a new far- right movement, the “Tea Party.”