1. CONSERVATIVES RESHAPE POLITICS 30-2

2. Iran Hostage Crisis U.S. supported Shah of Iran was overthrown in 1979 by Ayatollah Ruholla Khomeini Iranian mob invaded U.S. embassy of Iran 66 were taken captive Held for 444 days Cause of the Iran-Contra affair

3. The Reagan Revolution Key? How did government policy change under President Reagan? Reagan won landslide against Carter in 1980 Gave 5 goals for his administration to follow By 1983 inflation and unemployment decreased, but due to deficit spending, national debt increased

4. Reagan’s 5 goals 1. Lower Taxes  People save money, banks could have more money to invest with 2. Deregulation  Lower restrictions on businesses 3. Reduce the size of Government  Private companies fund the government 4. Conservative Supreme Court  Reagan appointed 3 conservative judges, Sandra Day O’Connor 5. Cutting Entitlement  Reduce programs that make people depend on government

5. Anti-Communism Reagan expanded military, worth $2 trillion Met with new president Mikhail Gorbachev of U.S.S.R. Signed Intermediate-Range Nuclear Forces (INF) treaty, both countries destroyed medium-range missiles Helped anti-communists in El Salvador and Nicaragua U.S. government secretly provided aid to anti- communists

6. Iran-Contra Affair Key? What shocking events occurred around the world in the 1980s? U.S. government sold weapons to Iran in exchange for the release of the hostages Money went to aid to anti-communists, known as Contras Considered illegal, Reagan claimed he knew nothing of the deal

7. George H.W. Bush and the Cold War Vice president of Reagan, won election in 1988 Eastern European countries got rid of Communism, Berlin Wall opened in 1989 U.S.S.R. rebellion led by Boris Yeltsin overthrew Gorbachev Yeltsin allied with other countries that used to be part of Soviet Russia to for the Commonwealth of Independent States (CIS) Marked the end of the Cold War

8. Persian Gulf War 1990, Iraq invaded Kuwait, an oil supplier U.S. and U.N. organized to fight the Persian Gulf War Bombing raids of Iraq U.N. drove back the Iraqis in 1991 Bush was popular, but the economy started to endure problems Unemployment around 7 percent Lost to democrat Bill Clinton

9. Bill Clinton Key? What fights broke out between President Clinton and Congress? Clinton had Hillary design a national health-care plan that drew criticism from both Democrats and Republicans North American Free Trade Agreement (NAFTA) won passage, lifted tariffs to increase trade with Mexico and Canada Republicans won control in 1994 election, Newt Gingrich, Speaker of the House, vocal opponent

10. Clinton Controversy Debate over Budget Cuts between Republicans and Democrats Clinton rejected two budgets until a compromise was reached Clinton was accused of having and improper relationship with a White House intern, and lying about it under oath Clinton admitted to relationship but denied lying under oath Still remained popular, acquitted

11. War in Kosovo Yugoslavia – Country established after WWI Region in the Yugoslav republic of Serbia called Kosovo that had many Albanians Kosovo wanted independence, Serbian government opposed Serbians tried to drive Albanians out of Kosovo, war broke out NATO began bombing Serbia, until Serbia recognized Kosovo’s independence