The End of The Cold War

1. The End of The Cold War

2. Post-Reagan Election • Americans looking for continuation of Reagan politics • Low taxes, Little Government Involvement with Economy • Republican nominee: George H.W. Bush • “Read my lips, no new taxes” • Democratic nominee: Michael Dukakis • Jesse Jackson finishes second in primary

3. Election of 1988 • Democrats question Bush’s leadership • Republicans say Dukakis is too liberal and soft on crime • Bush has Reagan’s endorsement and economy continues to improve

5. Soviet Union • Bush continues to work with Gorbachev • Soviet economy failing due to poor central planning and arms race • Perestroika: “restructuring” • Allowed some private enterprise and profit making in USSR • Glasnost: “openness” • Freedom of religion and speech grew in USSR

6. 1989 Revolutions • Democratic governments replace Communist rulers in Eastern Europe • Bulgaria • Czechoslovakia • Hungary • Poland • Romania • November 9: Berlin Wall guards open gates • Within days the wall was gone • Germany reunited within one year

7. Soviet Union Collapses • Opposition to Gorbachev • Communist officials and army try to overthrow gov’t • Gorbachev arrested and troops enter Moscow • Army proceeds to go to Russian president • Boris Yeltsin defeats coup • 50,000 people surround the Russian Parliament • Bush backs Yeltsin • Coup fails; Gorbachev returns to Moscow • 15 Soviet republics declare independence, Yeltsin outlaws Communist Party in Russia • Gorbachev announces end of Soviet Union in 1991

8. Global Challenges Emerge • China determined to remain Communist • Government relaxed controls on economy, but still restricted speech • Tiananmen Square (May 1989—Beijing) • Chinese students and workers protest for democracy • In June, government tanks and soldiers try to end protests with many casualties and arrests

9. Result of Tiananmen Square • US and European countries reduce diplomatic relations with China • Arms sales to China reduced • World Bank suspends loans to China

10. Panama • 1978: US agreed to give canal to Panama by 2000 • Canal strategically important, so Bush and US officials wanted to make sure Panama’s government was stable and pro-US • Dictator Manuel Noriega stopped working with US by 1989 • Backed drug traffickers, harassed US military guarding canal, cracked down on opponents • December 1989: US troops seize Noriega on drug charges and US sets up elections for new government

11. Persian Gulf War • 1990: Iraq’s Hussein invades Kuwait • US fears this is first step in seizing many oil reserves • UN coalition to stop Iraq—threatens to use force • October 31, 1990: US plans attack of Iraq • General Colin Powell and Sec. of Defense Dick Cheney • 500,000 American troops and air strikes • January 1991: Operation Desert Storm • Air strikes on military targets; ground attack 6 weeks later

12. Domestic Challenges for Bush • Growing Deficit • Economy plunging with recession and increasing unemployment • Less soldiers, less military equipment orders • Downsizing (laying off workers to increase efficiency) • Gigantic debt • The ugly side of deregulation (risks and failures)

13. Bush Attempts to Improve Economy • Cut Capital Gains Tax • Tax paid by businesses and investors when they sell stocks or real estate for profit • Believed this would encourage business expansion • Democrats defeated this saying it was a tax cut for the rich • Changed his “no new taxes” policy • Increased taxes and cut spending to attempt to improve deficit • Hurt his reelection chances

14. 1992 Election • Democrats: William Jefferson Clinton • Stories questioned his character • Did not serve in Vietnam • Tried to separate himself from “liberal” label • Promised to cut middle-class taxes, reduce gov’t spending, and reform healthcare and welfare • H. Ross Perot • Texas billionaire and businessman • Stressed end to deficit spending • Grassroots movement: local level organizations