THE CLINTON YEARS - Balancing the budget - Signing NAFTA - Impeachment

NAFTA North American Free Trade Agreement Initiated under George H. W. Bush, signed into being under Clinton (1993) Reduced trade barriers (tariffs) between the United States, Canada and Mexico Aimed to increase international trade and help stimulate economies of North America

“THE ECONOMY, STUPID.” Succeeded in creating a budget surplus, the first in a generation Focused on disciplined spending, education, global trade, and tax reforms Globalization Pros/Cons?

IMPEACHMENT Clinton investigated for past accusations of harassment During investigations, discovered affair with White House intern, Monica Lewinsky Impeached by republican House, acquitted in senate (1998-1999)

The Bush and Obama Presidencies

Vice President, Democrat Al Gore, ran for President against Republican George W. Bush in 2000. Although Gore won more popular votes than Bush, the electoral vote margin was too close to call. The election depended on Florida’s 25 electoral votes.

Because the vote in Florida was so close, state law mandated an automatic recount. The Supreme Court case of Bush v. Gore ended the recount. Bush was declared President.

September 11, 2001 On September 11, 2001, terrorists hijacked and crashed four airplanes. Two planes hit the World Trade Center in New York City. More than 3,000 people died as the twin towers collapsed.

In response, the United States began a “war on terror.” 9

Osama bin Laden, leader of al Qaeda, was thought to be hiding in Afghanistan, where the Taliban allowed him to operate. Bin Laden escaped capture.

In 2003, American and British forces invaded Iraq. Bush then turned his attention to Iraq, where many feared Saddam Hussein was stockpiling Weapons of Mass Destruction (WMD). In 2003, American and British forces invaded Iraq. Saddam and many of his supporters were captured. 11

Many Americans were troubled by the war, terrorism, and the budget as they cast their votes in the 2004 election. Bush won reelection, but the United States seemed to be returning to a country of deep political divisions.

In 2008, Americans faced an economic crisis centered on the financial industry. The American economy entered a recession in 2007. Unemployed Americans who couldn’t pay their mortgages faced foreclosure. Housing prices fell, and mortgage-related investments lost value. Several investment firms collapsed or were sold. In September 2008, the stock market plunged. The Troubled Asset Relief Program (TARP) was implemented to bail out the banks and prevent financial meltdown.

The 2008 presidential election broke new ground in American politics. Democratic senator Barack Obama of Illinois was a graduate of Harvard Law School. He had been a community organizer in Chicago and a state senator in Illinois. Republican senator John McCain of Arizona served as a pilot in Vietnam, and had been a prisoner of war. He was first elected to Congress in 1982. Barack Obama won the election, becoming the first African American President of the United States.

Upon entering office, President Obama addressed domestic issues. The American Recovery and Reinvestment Act was a stimulus package designed to pump money into the economy. In 2009, legislation was passed overhauling the nation’s healthcare system. It included coverage for the 46 million uninsured Americans, and prevented denial of coverage for pre-existing conditions. Some opposed the healthcare plan, saying it cost too much and gave the federal government too much power.

Obama also addressed the war in Iraq. In August 2010 the President announced that the American mission in Iraq had ended. More than 4,000 troops had been killed in the war and over 31,000 wounded. 50,000 American troops stayed behind in support roles. Thanks to a troop surge, Iraq was significantly more stable, although acts of terrorism continued.

At the same time, Obama increased the American military presence in Afghanistan. American forces focused their efforts on the Taliban in Afghanistan and their allies in Pakistan. In May 2011, al Qaeda leader Osama bin Laden was killed by U.S. Navy SEALS who raided his compound in Pakistan. The mastermind of the 9/11 attacks was dead. However, Americans knew that bin Laden’s death did not end the threat of terrorism.

As the 2010 elections approached, the nation seemed increasingly divided. Many Americans supported Obama, while others were angered by his actions. The Tea Party Movement wanted to reduce the size and scope of the federal government. They ran as Republicans but also criticized Republicans as big spenders. Republicans won control of the House and Senate in the 2010 congressional elections.