Transcript Politics and Economics - Auburn School District

Politics and Economics
The End of the Cold War
George Bush Takes Office
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The war in the Persian Gulf was only one of many
international crises that confronted President George
Bush after his election in 1988.
Civil rights leader Jesse Jackson, tried to create a
“rainbow coalition” –a broad group of minorities and the
poor-by speaking about homelessness and unemployment.
Democrats, keep control of Congress.
Domestic Challenges
Gridlock in Government
 Capital gains tax-the tax paid by businesses and investors
when they sell stocks or real estate for a profit.
 Bush broke his “no new taxes” campaign pledge.
 He agreed to a tax increase in exchange for cuts in
spending.
Domestic Challenges
The Economy Slows
 The recession that began in 1990 was partly caused by
the end of the Cold War.
 Downsizing: laying off workers and managers to become
more efficient.
 As the Soviet threat faded, the US
began reducing its armed forces. Many
former military personnel now had to
find civilian jobs. The government
canceled orders for military equipment.
This forced defense factories to lay off
thousands of workers.
The “New World Order”
The Persian Gulf War
 In August 1990, Iraq’s dictator, Saddam Hussein, sent his
army to invade oil-rich Kuwait.
 President Bush persuaded other UN member countries
to join a coalition to stop Iraq.
 Iraq refused to comply with the UN deadline, and on
January 16, 1991, the coalition forces launched Operation
Desert Storm.
 The attack killed thousands of Iraqi
soldiers.
The “New World Order”
Panama
 While president Bush struggled to deal with global events
elsewhere, a crises developed in Panama.
 By 1989 Panama’s dictator, General Manuel Noriega, had
stopped cooperating with the United States.
 U.S. troops helped the Panamanians hold elections and
organize a new government.
The Cold War Ends
Gorbachev’s Reforms
 To save the economy, Gorbachev instituted perestroika,
or “restructuring,” and allowed some private enterprise
and profit-making.
 Principle of Gorbachev’s plan was glasnost, or “openness.”
The Cold War Ends
Revolution in Eastern Europe
 In 1989 peaceful revolutions replaced Communist rulers
with democratic governments in Poland, Hungary,
Czechoslovakia, Romania, and Bulgaria.
The Cold War Ends
The Soviet Union Collapses
In late December 1991, Gorbachev announced the end of
the Soviet Union.
In Moscow, Russian president Boris Yeltsin defied the coup
leaders.
The “New World Order”
Tragedy in Tiananmen Square
 In May 1989, Chinese students and workers held
demonstrations for democracy.
 In early June, government tanks and soldiers crushed their
protests in Tiananmen Square.
Essay Question

Explain how the end of the Cold War contributed
to the recession that began in 1990.
Essay Question

Explain how the end of the Cold War contributed
to the recession that began in 1990.

As the Soviet threat faded, the United States began reducing its
armed forces. Many former military personnel now had to find
civilian jobs. Meanwhile, the government canceled orders for
military equipment. This forced defense factories to lay off
thousands of workers.