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=//**  Section 3: __Bush Takes Over__**//=
 * In 1988, Vice President [|George H. W. Bush] broke a 152-year-old tradition by being elected for president, while in the office as the Vice-president of Reagan.[[image:georgeh.w.bush.jpeg align="center"]]

__**The Election of 1988**__  ~ Bush ran with Senator J. Danforth "Dan" Quayle for presidency ~ The runners for the Democratic party were Governor Michael Dukakis and Senator Lloyd Bentsen. ~ Bush received 53% of the popular vote, while Dukakis received 46%. Bush also took 426 electoral votes to Dukakis's 111. ~ George W. Bush was campaign manager, used TV ads to make Dukakis look bad.

__**The New President**__

~ Bush said he would not just follow the ideas and attitudes of the Reagan era, but that "A new breeze is blowing..." with the promise of a "kinder, gentler nation." ~ Tried to maintain a balance between continuing Reagan's policies and working closely with the Democratic-controlled Congress.

__**Drugs, Education and the Environment**__

~ Bush appointed William Bennett to oversee nation's war and drugs, Bob Martinez replaced him in 1990. (drugs still flowed in from different countries, although drug use had seemingly began to drop.) ~ Wanted new course for environment and education. ~ Bush appointed William Reilly to head Environmental Protection Agency (EPA) ~ Nuclear waste was a problem back then, like it still is now.

__**The Savings and Loan Crisis**__

~ A rash of savings bank failures put even more pressure on the nation's finances. ~ These 'S&Ls' financed mortgages, or loans, for Americans buying homes. ~ Interest rates soared in late 1970's, causing many of the S&Ls to be on the verge of going out of business. ~A number of S&Ls went bankrupt because the loans they made weren't repaid. ~ Bush administrations set up federal agency to take over the failed banks, to sell them, or to sell off their assets. ~ Many blamed Reagan, banking officials, and the Congress for this collapse. ~ By 1990's, collapse of many S&Ls, weakened the nation's banking system.
 * The government had insured the deposits in S&Ls, so that people were encouraged to save money.
 * By 1990, a recession in New England led to more savings bank failures.
 * Gov't economists estimated the cost for bailing them out would be $600 billion over 10 years.

__**Reducing the Deficit**__

~Since the S&Ls added to the deficit that was already increasing in the federal budget, Congress and the President needed to either cut spending or raise more money. George Bush had already promised, "No new taxes!" ~Congress and Bush struggled over a budget that lowered the deficit. ~Congress and Bush finally came to an agreement that would cut the deficit by $500 billion over 5 years. __**The Elections of 1990**__
 * Increased taxes on cigarettes, alcohol, and gasoline, and cut spending in many areas.

~ Even though the new budget agreement had reduced more deficit than any legislation during Reagan years, people were still afraid of the feuding in Washington. ~ During the election campaign of 1990, political leaders faced an angry public.

__**Flags and the Supreme Court**__

~ Court struck down a Texas law that had made burning the American flag a crime, Bush was furious. ~David Souter appointed to Supreme Court.
 * Congress said it was a form of free speech (protest) that's protected by the First Amendment.
 * Bush called for a new amendment that would allow the states to outlaw defacing the flag.
 * Heated debate, with lots of controversy.



=//Section 4: __A World in Transition__//=
 * The collapse of communist dictatorships in Eastern Europe helped ease world tensions.
 * When a crisis erupts in the Middle East in 1990, the U.S. and U.S.S.R find themselves on the same side.

__**The End of the Cold War?**__

~One after another, communist governments collapsed. ~ Berlin Wall comes down ~ End of communism in Soviet Union seemed to be a possibility. ~Americans responded enthusiastically to the democratic reforms in Eastern Europe.
 * Symbolizes the end of the Cold War.
 * Germany becomes one nation again.

__**New Directions in Latin American**__

~ United States would provide the contras with food, clothing, and medical supplies. ~ Democratic elections in Nicaragua looked like a victory for democracy, but when Daniel Ortega and Violeta Chamorro ran against each other, with Chamorro winning, Ortega's brother still had control of the military. ~Panamanian dictator Manuel Noriega was considered a friend to U.S. until he became heavily involved in drug smuggling. ~When indicted with these charges, Noriega became disobedient. ~December 20, 1989, Bush sent forces into Panama, the U.S. installed a new government and offered to help rebuild the nation's economy.
 * This approach was less militant than Ronald Reagan's.
 * Chamorro's hold on power was slipping.
 * Future relations between Nicaragua and the U.S. were uncertain.
 * **Invasion of Panama**

__**Unrest in China**__

~ Spring of 1989 - Chinese students began to campaign for democratic reforms. ~ Hundreds of thousand gathered at Tiananmen Square in the capital city of Beijing. ~ During the 1980s, the South African government had continued to pursue the policy of apartheid (separation of the races) ~ Reagan opposed this but said economic actions against S.A. would hurt the black majority by destroying jobs. ~ Adopted a policy of "constructive engagement." ~ Congress rejected cautious approach and called for **economic sanctions** (limits on trades and investment) to pressure the S.A. government to end apartheid. ~ At the same time, Americans used **divestiture** (refusal to hold stock in companies that have operations in South Africa while apartheid continues) ~In September of '89, South Africa elected a new president: F. W. de Klerk. ~ For the time being Bush decided to keep the sanctions just to be safe.
 * Thousands of protesters were killed or arrested.
 * Bush refused to take strong action, saying that the U.S. could better influence Chinese behavior by keeping tactful conduct open.
 * __A Policy Toward South Africa__**
 * Bill was passed by Congress in October 1986 over Reagan's veto.
 * announced series of reforms to ease racial tensions in his country.
 * freed Nelson Mandela, a black opponent of apartheid who had been in prison for 27 years.



~ Iraqi dictator Saddam Hussein rebuilt military in 1988. ~During the '80s, industrial nations became more dependent than ever before on oil from Persian Gulf. ~ Pres. Bush immediately dispatched American forces to Saudi Arabia.
 * __War Clouds in the Middle East__**
 * His troops invaded Kuwait, one of the richest oil-producing nations in the Middle East.
 * If Saddam conquered Saudi Arabia as well as Kuwait, he'd control 80% in region.
 * It could be possible to cripple the economies of the western world, and if he wasn't stopped, he could expand his strong military forces and attack other Arab nations.
 * Saddam held many Americans and other foreigners as hostages in Kuwait and Iraq, he warned if the U.S. or any other country would bomb them, the hostages would die.
 * Saddam threatened to use poisonous gas in any battle with American troops.

~ Several Kuwaitis humbly helped foreign people who could become hostages. ~ Americans lives would be consumed with running and hiding from Iraqis.
 * __Fugitives in a Desert Drama__**

~Bush convinced the U.N. Security Council to declare January 15, 1991 as a deadline for Iraq's removal from Kuwait. ~ Bush sent 200,000 additional troops to the Middle East to prepare for an offensive strike. ~As the deadline for Iraqi withdrawal from Kuwait passed, the U.S. and the forces from several other United Nations members launed an air attack on Iraq January 16.
 * __War in the Persian Gulf__**
 * They would attack against Iraq if necessary.
 * Saddam refused to negotiate but released most of the foreign hostages, including the Americans.