New Century, New Challenges, 1996 to the Present

1. New Century, New Challenges, 1996 to the Present Chapter 32

2. Clinton Era Part II • Domestic Policy • 1st term accomplishments • Budget balancing bill • Welfare reform • Election of 1996 • Easy re-election • Republicans control congress • Not as strong • Fundraising scandals • Cost of TV ads increasing • Policy • Signed Rep. bill for tax cut in 1997 • Continued to distance himself from “New Deal” past • Cautiously defended A.A. • Support weakening • Tobacco regulation a major focus • Clinton forceful about legislation • 1997 lawsuit- Tobacco industry paid $368 billion • State of the Union 1998 • 1st surplus in 30 years • Balanced budget by 1999 • Wanted surplus to addressing national debt • Strengthen social security • 2nd term overall • More modest proposals • Abandoned large-scale proposals • Some initiatives to help the poor • Reduced national debt

3. Scandals • Scandals • Paula Jones • From back in Ark. Gov. days • Was subpoenaed • Questioned about Lewinsky • “right-wing conspiracy” • Hillary blamed it on Republicans • Settled lawsuit for $800,000 • Monica Lewinsky • Taped phone conversations with Linda Tripp • 2 year relationship • Only admits to “conduct that was wrong” • Impeachment • Kenneth Starr • Enough “evidence” • Of perjury • Judiciary committee voted on 4 articles, Senate voted on 2 • Impeachment • Most Americans opposed • Democrats gained seats in 1998 elections • Results • Senate rejected impeachment • Clinton’s approval rating soared • Economy booming • Popular positions

5. Clinton’s Foreign Policy • Two key challenges • Using US power wisely • By 1990 only Superpower left • Responding to terrorism • Balkans • Collapse of U.S.S.R. = bitter ethnic conflicts • Yugoslavia broke 1991 • Sent peacekeeping force to Bosnia/Serbia • Joined NATO in air strikes • Dayton accords • Flew in Bosnian leaders • Imposed cease-fire • 1998 • Slobadan Milosevic’s genocide in Kosovo • UN bombs, with US help • Public opinion wavered • Ground troops 1999 • Milosevic overthrown 2001 • Russia • Affected relations with Russia • Dealing with break-away republics • Chechnya • Muslim population • Russian War 1995-1996 • Economic changes • Converted to free-market economy • U.S. supported President Boris Yeltsin • 1999 • Russia admitted to the G-7 • Then called G-8

7. Africa/ Haiti • Africa • Somalia • 1992 Civil War/Famine • Black Hawk Dawn • 26,000 troops • Bush 1 failed, Clinton weary • South Africa • Helped end the apartheid with economic sanctions • Haiti • Haiti • 1991 military junta • Overthrew Presidents • Refugees fled • 1994 US military flotilla • Modest diplomatic success

8. Middle East • Peace? • 1993 Oslo Peace Accords • Creation of Palestine State • Signed at White House 1994 • Bloodshed • Israeli PM assassinated 1995 • Suicide-bombings • Madeline Albright named British Prime Minister 1997 • Tried to bring warring factions to table • Ehud Barak PM 1999 • New Intifada against Israel • Ariel Sharon PM 2001 • Iraq • Nuclear weapons concerns

9. Nuclear Proliferation and Terrorism • Nuclear Nonproliferation Treaty 1970 • 62 nation ban • Issues • India/Pakistan • India tested nuclear weapon in 1998 • Kashmir 1998 • North Korea • Violated treaty • Nuclear weapons • Violations = lots of sanctions • 2002 • Former U.S.S.R. • Ukraine, Kazakhstan, Belarus • Social unrest and economic crisis • Fear of growth of terrorist groups • “denuclearize” program • Clinton Years • Terrorism • 1998 African embassies • Kenya, Tanzania • Bin Laden connections • Responded with Operation Infinite Reach • Bombed Sudan/ Afghanistan • Bin Laden a “hero” • 2000 U.S.S. Cole • A New World Order? • US’s role defined by: • Growing centrality of economic and trade issues • Turning inward toward religious fundamentalism • Growing gulf b/w MDCs and LDCs • Role of international organizations in the work uncertain • Some favored Isolationism

10. Economic Boom of the 1990s • 1990s -one of the longest periods of sustained growth in US history • Productivity increased • Unemployment fell • 1992- 7.5% • 2000- 4% • Inflation under control • What caused boom • Rising international trade • Higher consumer confidence • Low inflation • Low Fed interest rats • Steady flow of immigrants ready to work • Corporate growth • Stock market surged • Problems • Real wages didn’t keep up with the stock market • Paper wealth led to massive consumerism • Luxury goods, travel • Lack of specialized skills by older generation • Increasing participation and dependence on foreign markets

11. Problems • Uneven prosperity • Real wages barely rose • Union membership only 13.5 % • Unions political clout weakened • Advanced skills and training needed for job market • Corporations maintained profits by “down-sizing” and cost-cutting • Jobless rate law but still high for minorities than whites • America and the Global Economy • Clinton’s goal to expand foreign trade • Visited Japan • Welcomed Chinese leader to U.S. • 1993- EU created • 1994- Senate ratified World trade organization • Gradually lowered trade barriers • Mechanisms to solve trade disputes • US bailouts of foreign economies • PESCO collapse 1995 • Jeopardized US/MEX trade • U.S. loaned $40 billion • 1997-1998 • Asian economic crisis

12. Disputed Election 2000 • Bush vs. Gore • Campaign of personalities • Democrats • Al Gore • VP nom. Joe Lieberman • 1st Jewish VP nominee • Campaign • Pledged to extend health-care and SS • Courted liberals, academics, unions, African-Americans and Hispanics • Image problems • Reform Party • Pat Buchanan • Green Party • Ralph Nader • Won only 3% of popular vote BUT 97,488 Floridians voted for him • Republicans • John McCain • Former POW • Championed campaign finance • Critical of corporate influence • Lost Republican nomination • George Bush • VP Dick Cheney • Campaign • Little or no foreign policy • Pledged tax cuts • Education reform • Missile-defense system • Backed by powerful people • Courted corporate interests and religious conservatives

13. Florida • November 7, 2000 • Gore won pop vote • By 500,000 • Electoral college the issue • Florida • 25 votes up for grabs • Congress • Divided Senate • 50 votes each • Slight Rep. majority in House • Election went to Supreme Court • TWICE!!! • Clinton’s last days • Statesman • Tougher worker-safety regulations • Executive order protecting 67 millions acres • Shady • 167 pardons • Drug issues • Clinton scandals • Democratic contributors

14. George W. Bush’s Administration • Cabinet • Sec. of State Colin Powell • Nat’l Security Adviser Condoleezza Rice • Veterans Donald Rumsfeld, Attorney General John Ashcroft • To please Rep. right wing • Domestic Policies • Tailored to wealthy, corporate leaders, religious right • NOT MODERATE! • Education • Standardized national tests • Grades 3-8 • Penalties for schools that don’t perform • Voucher system • Congress didn’t pass • Taxes • Fulfilled campaign promises • Proposed to cut taxes 1.6 trillion over 10 years • Feb 2001 • Benefitted wealthy the most • Stimulated economy? • 1.3 Trillion passed by Congress • Economy worsened • Budget surplus vanished • Energy • Proposed 2000 plants • Influence of corporate world • Expanded drilling in Alaska • Proposed new electric power plants to reduce dependence on foreign oil • Moderate Republicans • Democrats gain vote • Vermont, James Jeffors • Issues • HMOS • Stem Cells

15. No Child Left Behind

16. G.W.’s Foreign Policy, “Go it Alone” • Anti-Missile Defense System • Reagan’s “Star Wars” • Bush gave anti-missile project high priority • Diplomatic implications • Would violate 1972 treaty with Russia • Signed new treaty 2002 • Work began in Alaska in June • Environment • Starting 1994, U.S. became skeptical of international commitments • Refusal at 178-nation conference 2001 • U.N. • Didn’t pay dues • Opposed creation of International Criminal Court • Promoted US Trade Interests • China • Spy plan crash • $120 billions in trade more important • Tariffs • Pressure from U.S. Steel producers • Violation of free trade

17. Recession, Battles, Environmental Debates • Economic Boom • March 2001 • Recession officially began • Consumer confidence down • Corporate profits plunge • layoffs • Internet bubble burst • Nov 2001- 300,000 jobs lost • Fed cut interest rates 11 times • 40 year low • Years of deficits • Finance Reform • John McCain, Russ Feingold • Targeted Soft Money • Contributed to political parties • Senate passed version • Bush signed • Environmental Issues • Clean-up of nuclear weapons facilities = $150 billion cost • Global Warming • Rejecting Kyoto Protocols 97 • Would not implement EPA measures

19. September 11, 2001 • America Under Attack • 2,800 + dead • Americans pulled together • Wave of patriotism • Stocks plunged • Anthrax attacks • Battling terrorist networks abroad • Sept 12 “act of war” • Sept 15 Senate authorization • “all necessary and appropriate force” to respond • Military phase launched October 7, 2001 • Against Taliban • Impressive success • Global support for 1st phase • Jan 2002 • “Axis of Evil” • North Korea, Iraq, Iran • Later added Syria, Libya, Cuba • Home-Front Security • Airport security • Civil-liberty issues • USA- Patriot Act Oct 2001

22. Crisis in the Middle Eastand Corporate America

23. Election 2004