Transcript Economics

America: Pathways to the Present
Chapter 27
Entering a New Era
(1992 to the Present)
Copyright © 2003 by Pearson Education, Inc., publishing as
Prentice Hall, Upper Saddle River, New Jersey. All rights reserved.
The 1992 Election
Chapter 27, Section 1
The Candidates
• President George Bush, a
Republican, sought a second
term.
• Texas billionaire H. Ross
Perot, an independent
candidate, entered the race
out of frustration over
government economic
policies.
• Arkansas Governor Bill
Clinton, a Democrat, pledged
to address the nation’s
economic problems.
Campaign Issues
• Clinton campaigned on the
belief that government was
necessary but that it should
be made smaller and more
efficient.
• Character issues, including
reports of a past affair,
marred Clinton’s campaign.
Nonetheless, he won the
election with 43 percent of the
votes.
Clinton’s First Term
Chapter 27, Section 1
Economic Reform
• Clinton tried to follow a middle
course in dealing with the
economy.
• To reduce the deficit, Clinton
proposed a budget including
both spending cuts and tax
increases. Congress passed the
budget, but just barely.
• Neither the spending cuts nor the
tax increases were well received
by the public.
The Battle Over Healthcare
• When Clinton took office, many
Americans lacked access to
affordable healthcare.
• Clinton proposed the creation of
a government-supervised health
insurance program that would
guarantee affordable coverage to
every American.
• Despite popular support for
healthcare reform, Clinton’s
proposal failed to gain the
necessary votes in Congress.
The Republicans’ Contract With America
Chapter 27, Section 1
Balancing the Budget and Welfare Reform, 1994–1996
Contract With America
During the 1994 midterm elections, Georgia Representative Newt Gingrich called on
Republican candidates to endorse a Contract with America, a pledge to scale back the
role of the federal government, eliminate some regulations, cut taxes, and balance the
budget.
Congress Versus the President
In the 1994 elections, Republicans won majorities in both houses of Congress. Newt
Gingrich became Speaker of the House and proposed cuts in many social services to balance
the budget. The debate turned from whether or not to balance the budget to how to balance
it.
The Government Is Shut Down
At the end of 1995, Clinton and Gingrich were unable to compromise on budget issues. As a
result, budget allocations expired without reauthorization, leading to the temporary closure of
government offices and disruption of services to many Americans.
Welfare Reform
In August 1996, Congress and Clinton agreed on a sweeping reform of the nation’s
welfare system. The new law eliminated federal guarantees of cash assistance, gave
more authority to states, and placed limits on the length of time Americans could
receive welfare.
Clinton’s Second Term
Chapter 27, Section 1
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Clinton won reelection in 1996, defeating Republican Bob Dole
and Ross Perot of the newly created Reform Party.
A strong economy improved Clinton’s popularity. In 1998, the
government achieved its first budget surplus since 1969.
Charges of scandal continued during Clinton’s second term. In
what came to be known as the Whitewater affair, Clinton was
accused of having taken part in fraudulent loans and land deals in
Arkansas years earlier.
A further scandal arose when Clinton denied a sexual relationship
with White House intern Monica Lewinsky. In December 1998, the
House voted to impeach Clinton on charges of perjury and
obstruction of justice. In the Senate trial which followed, Clinton
was acquitted.
The 2000 Election
Chapter 27, Section 1
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The mixture of a strong economy and a scandal-ridden presidency
promised a close presidential election in 2000. Vice President Al
Gore ran for the Democrats, while the Republicans nominated
Texas Governor George W. Bush.
Pre-election polls showed Gore and Bush virtually tied. On
election night, votes in several states were too close to call.
One undecided state, Florida, could give either candidate enough
electoral votes to win the presidency. Lawyers, politicians, and
the media swarmed to Florida to monitor a recount of votes there.
A series of court battles eventually reached the Supreme Court,
which voted 5–4 to stop the Florida recounts, awarding the state’s
electoral votes to Bush.
Although Gore had won the popular vote, Bush won the election
by 271 electoral votes to Gore’s 266.
The George W. Bush Administration
Chapter 27, Section 1
Change in Presidential Style
• Bush’s approach to the
presidency differed from that of
Clinton.
• Bush preferred a more formal
atmosphere in the White House
and began keeping a stricter
schedule than the former
President.
• Advisors, staff members, and the
Vice President, Dick Cheney,
were granted more responsibility
for setting policy under Bush’s
administration.
Bush on Domestic Policy
• Early in his presidency, Bush
received congressional approval
for a tax cut that granted most
taxpayers a $300 rebate.
• Bush also proposed an
educational reform bill that called
for redirected funding and
increased accountability from
schools.
Attack on America
Chapter 27, Section 1
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On September 11, 2001, terrorists hijacked four commercial airplanes.
Two hit the Twin Towers of the World Trade Center in New York, causing
both towers as well as several surrounding buildings to collapse. A third
plane hit the Pentagon, and a fourth crashed in a field near Pittsburgh,
Pennsylvania.
Thousands died in the collapse of the towers, including hundreds of
emergency workers who had rushed to the scene.
Americans responded to the tragedy with an outpouring of support for the
victims. Meanwhile, President Bush vowed to bring justice to those
responsible for the attack.
On October 7, an American bombing campaign known as “Operation
Enduring Freedom” began against Afghanistan, whose ruling Taliban was
believed to be harboring Saudi dissident Osama bin Laden, suspected of
masterminding the attack.
Political Changes Worldwide
Chapter 27, Section 2
Russia and Eastern Europe
• The United States applauded
Russia’s move toward democracy
and a free market economy,
including the election of Boris
Yeltsin as president.
• A conflict in Chechnya, a republic
which sought independence from
Russia, became the source of
great public support for Vladimir
Putin. Putin later became
president of Russia.
• Some Eastern European nations,
including Poland, joined NATO
and initiated economic reforms.
South Africa
• In South Africa, a system called
apartheid had separated people
of different racial backgrounds
and denied equal rights to the
nation’s black majority.
• Nations around the world had
used economic sanctions, or
trade restrictions and other
economic measures, to
encourage reform.
• Between 1990 and 1994, Prime
Minister F. W. de Klerk and antiapartheid leader Nelson Mandela
worked together to end apartheid
peacefully.
The Difficult Search for Peace
Chapter 27, Section 2
Conflict Around the World, Early 1990s
Somalia
In the early 1990s, famine combined with civil war devastated the East African nation of Somalia.
President Bush sent American troops to assist a United Nations relief effort, but the troops
returned without having restored order.
Northern Ireland
In Northern Ireland, the United States encouraged renewed efforts to end decades of violence
between Protestants and Catholics. The Good Friday Accords, signed in 1998, provided for
major reforms and offered the best hope yet for ending the violence.
Iraq After the Gulf War
Despite defeat in the Gulf War, Iraqi leader Saddam Hussein continued to oppress
opposition groups and failed to cooperate with UN weapons inspectors. An “oil-forfood” program allowed Iraq to export small quantities of oil in return for food and
related supplies.
Afghanistan
In 1996, a group of Muslim fundamentalists known as the Taliban seized the Afghan capital of
Kabul from its ruling pro-Soviet government. The Taliban sought to set up what their leaders
considered a pure Islamic state in Afghanistan.
The Search for Peace in Israel and the
Balkans
Chapter 27, Section 2
Israel
• In September 1993, Palestine
Liberation Organization (PLO)
leader Yasir Arafat and Israeli
Prime Minister Yitzhak Rabin
signed a historic peace
agreement in Washington, D.C.
• This agreement, however, failed
to resolve all issues in the Middle
East or stop violence in the
region.
• Israeli prime ministers who
succeeded Rabin were more
reluctant to grant concessions to
the Palestinians.
The Balkans
• Tensions among ethnic and
religious groups in Yugoslavia
exploded into violence after the
collapse of the nation’s
Communist government.
• Millions were killed in a ferocious
“ethnic cleansing” campaign
carried out by Bosnian Serbs.
• Steps toward peace in 1995 failed
to resolve underlying issues, and
violence again erupted.
• In 2001, Serbian leader Slobodan
Milosevic was indicted for war
crimes by an international
tribunal.
Relations With China
Chapter 27, Section 2
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The United States sought to remain on peaceful terms with China
during the 1990s. However, the issue of Taiwan resulted in
tensions between the two nations.
China viewed the island of Taiwan as part of China. The United
States, however, supplied weapons to Taiwan and opposed any
military action against Taiwan by China.
Relations between the United States and China improved as both
nations worked on ways to expand China’s trade with other
nations.
A strain in relations occurred in 2001, when the Bush
administration stated that the United States would defend Taiwan
from military attacks by China. China, in turn, warned the United
States against sales of advanced weapons to Taiwan.
Trade and the Global Economy
Chapter 27, Section 2
The Continuing Growth of World Trade
The European Union
In 1993, the European Union (EU) was formed from the older European Economic Community
(EEC) to coordinate political and monetary policies. In the late 1990s, member nations agreed to
gradually replace their individual currencies with the euro.
NAFTA
In 1992, the United States, Canada, and Mexico signed the North American Free Trade Agreement
(NAFTA), which called for a gradual removal of trade restrictions among the three nations. NAFTA
produced tremendous controversy in the United States.
GATT and the WTO
The United States joined other countries in adopting a revised version of the General Agreements
on Tariffs and Trade (GATT) in 1994. In 1995, the World Trade Organization (WTO) was created to
ensure cooperation with GATT, negotiate new trade agreements and resolve trade disputes.
Rise of Multinationals
Multinational corporations, or businesses that operate in more than one country, gained
importance in the 1990s. Multinationals continue to provide both advantages and
disadvantages to the nations in which they operate.
A Nation of Diversity
Chapter 27, Section 3
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Changing immigration policies contributed to America’s growing
diversity during the 1990s. The Immigration Act of 1990 increased
immigration quotas by 40 percent and erased restrictions which
had denied entrance to many people in the past.
Immigrants during the 1990s chose to settle in a variety of places,
with different ethnic groups concentrating in particular cities or
areas. Cities with large immigrant populations saw widespread
competition for jobs and housing.
As minority groups grew in size, they also gained new political
power. Numerous African Americans, Native Americans, Asian
Americans, and Latinos were elected to the Senate and House of
Representatives.
Making Diversity Work
Chapter 27, Section 3
Debating Issues of Diversity
The Debate Over Immigration
Americans continue to present numerous arguments both for and against
immigration. Bilingual education, in which students are taught in their native
language as well as English, has come under attack.
Affirmative Action
Another continuing debate concerns affirmative action, or giving preference to
African Americans, women, and other minorities who had been discriminated
against in the past. Whether race should be a deciding factor in hiring, or just
one of the factors, is still being debated today.
Multiculturalism
A movement known as multiculturalism called for greater attention to nonEuropean cultures in areas such as education. Like immigration and
affirmative action, debate over multiculturalism remains ongoing.
America’s Aging Population
Chapter 27, Section 3
• As the United States approached the turn of the
millennium, its population was older than ever before.
• An increase in elderly Americans had important
political and economic effects. The Social Security
system became strained when the number of retirees
receiving benefits rose faster than the number of
workers paying taxes into the program.
• The American medical system began to face similar
challenges. Federal lawmakers agreed that long-term
changes were needed to meet these challenges, but
disagreed on what those changes should be.
A Technological Revolution
Chapter 27, Section 3
Information, Economic Issues, and Education
Communication and Information
Computer ownership rose tremendously during the 1990s. The Internet, a
computer network that links millions of people around the world,
revolutionized many areas of American life.
The “New Economy”
The technological boom helped the United States enjoy the
greatest period of economic expansion in its history. The face
of business began to change as more companies, both old and
new, adopted more casual policies.
Education
Education is becoming increasingly important in a technology-driven
world, but the role of computers and the Internet in education is still
being determined.
Impacts of Technology
Chapter 27, Section 3
Impact of Technology
Impact on Foreign Affairs
New technologies are enabling greater communication among people around
the world. However, poorer nations often lack the wealth or infrastructure to
participate in this global network.
Impact on Government
Privacy and ownership rights have become issues faced by the federal
government. In 1998, the government sued the giant software company
Microsoft, accusing it of gaining a monopoly over Internet browsers.
Impact on Daily Life
Americans have come to rely on technology, such as cell phones and the
Internet, for keeping in touch with friends and family, shopping, and many other
tasks. However, some have begun to question whether the advantages of
modern technology outweigh the disadvantages.
Facing the Future
Chapter 27, Section 3
• As changes occur increasingly fast in the years
ahead, Americans will face new advances and new
challenges.
• The preservation of freedom will likely remain a
priority to Americans in the time to come.