Standard USHC-8: The student will demonstrate an understanding of social, economic and political issues in contemporary America. USHC-8.5 Summarize key political and economic issues of the last twenty-five years, including continuing dependence on foreign oil; trade agreements and globalization; health and education reforms; increases in economic disparity and recession; tax policy; the national surplus, debt, and deficits; immigration; presidential resignation/impeachment; and the elections of 2000 and 2008.

GLOBALIZATION Globalization is the growing trend towards expansion and integration of worldwide trading networks. The U.S. was impacted by globalization as its place as the world’s foremost economic power in the post WWII world was challenged by growing economic around the world.

Examples of Globalization: The U.S. continues to be dependent on foreign oil, and therefore the American economy is impacted by fluctuations in world oil prices The European Union developed in the 1990s, to provide political cooperation as well as promote democracy, trade and development of European countries – Adoption of a common currency

The North American Free Trade Agreement (NAFTA) attempted to increase trade by eliminating trade barriers The 1994 GATT (General Agreement of Tariffs and Trades) lowered tariffs around the world

Globalization and the U.S.: As a result of globalization, U.S. industries are experiencing greater competition and a growing unfavorable balance of trade Outsourcing of jobs to foreign nations (lower labor costs) has led to unemployment for some American workers New technologies have changed society, privacy laws and communication in the U.S. and around the world – Computers, internet, Ebay, , pagers, cell phones, social networking

Globalization also raised concerns about how well the American education system is preparing our nation’s children to compete in the global marketplace – No Child Left Behind: President George W. Bush; mandated that states test students to see if they meet increasingly difficult goals to demonstrate academic proficiency

Problems in Manufacturing: Immigration A decline in labor union membership and influence Competition from overseas Mechanization

The movement of industries and retirees from the “rustbelt” to the “sunbelt” means a big population shift to the “right-to-work” states

RUST BELT: the informal description for a postindustrial region straddling the Northeastern and the East North Central States, referring to economic decline, population loss and urban decay due to the shrinking of its once powerful industrial sector SUN BELT: a region of the U.S. generally considered to stretch across the South and Southwest; the main defining feature of the Sun Belt is its warm climate with extended summers and brief, relatively mild winters

Demographics Demographic changes in the U.S. also affected the economy and politics Economic conditions make it increasingly likely that both mothers and fathers have to work to provide for the family Demand for services such as day care and fast food, and the resulting impact on the obesity rate and health, are growing Medical advances allow people to live longer, which contributes to the rising cost of health care, health insurance and Social Security

Many Americans lost their health insurance as manufacturing companies drop employees and benefits to remain competitive in the market President Bill Clinton attempted to pass healthcare reform but was rebuked by a Republican Congress Healthcare reform passed under President Obama, but continues to be politically controversial

Budget Deficit: government spending exceeds revenue (spending more money than they have) National Debt: the amount owed by the federal government of the United States Debt Clock

BILL CLINTON Democrat elected in 1992 Clinton introduced welfare reform legislation that modified decades of policy dating back to the New Deal Clinton and the Republican Congress fought over healthcare reform, how to balance the budget and stimulate the economy Clinton was impeached by the House of Representatives after the Monica Lewinsky scandal and tried by the Senate The Senate refused to convict, and he remained in office

Clinton passed a tax increase, spending cuts and established the earned income tax credit Economic growth brought low unemployment, but the gap between the rich and poor widened National debt decreased as we reached the end of the Cold War, and a “peace dividend” – Peace dividend: money becomes available in times of peace because defense spending can be reduced

GEORGE W. BUSH George W. Bush, son of the 41 st president George H. W. Bush, was elected in 2000 after the counting of ballots was contested in Florida Bush also cut taxes for the wealthy, but they further increased economic disparity and eventually budget deficits Defense spending climbed under Bush after the U.S. entered wars in Afghanistan and Iraq, post 9/11

At the end of the Bush administration the housing bubble burst and we entered a deep recession – Bush initiated a stimulus plan to bail-out banks – The unemployment rate topped 10% This Great Recession saw the worst economic conditions since the Great d the Depression of the 1930’s as people lost their jobs and homes

BARACK OBAMA Barack Obama became 44 th president in 2008, and the first African American president The Obama administration passed a stimulus plan in an effort to jump start the economy Conservative critics objected to deficit spending because it raised the national debt The Bush tax cuts for the wealthy were not repealed to bring in more revenue (but they did eventually expire)

Who Am I? I fought with the Republican Congress over healthcare reform and how to balance the budget

Who Am I? I became the first African American president in 2008.

Who Am I? When I left office unemployment was low and the national debt was decreasing.

Who Am I? I was President when the World Trade Center was attacked on Sept. 11, 2001.

Who Am I? I provided tax cuts for the wealthy in an attempt to keep money flowing through the economy during one of the worst recession’s in American history.

Who Am I? I passed health care reform that continues to be controversial and cause conflict between the two political parties.

STATE OF THE UNION? Many economists have declared the Great Recession ended, but lack of confidence in the economy, political wrangling and worsening debt crises in Europe continue to damper consumer spending Many Americans remain unemployed, despite low interest rates and significant cash in the hands of businesses Deficit and debt continue to grow as does the gap between the rich and poor Conservatives and liberals continue to seem unable to find a compromise solution and the political extremes control the debate