 Reagan renews “active” fight against Communism › Calls the Soviet Union an “Evil Empire”  Strategic Defense Initiative—”Star Wars”  The Reagan Doctrine › Renewed promise to support anti-communists around the world › 1982: Marines sent to Granada › Support for Nicaraguan “contras” › Intervention in Lebanon (w/ Israel)  1983: terrorists bomb U.S. marine base in Beirut, Lebanon  Terrorism in the “Third World” rises throughout 1980s

 Reagan has full support of Republican Party  Democrats fight rough primary › Walter Mondale, early favorite, fights challenge from Sen. Gary Hart › Jesse Jackson also enters race, sapping African-American support › Mondale wins nomination, choses Geraldine Ferraro as running mate  Reagan campaigns on “Morning In America”  Reagan wins in landslide, Democrats remain in control of House, gain seats in Senate › Appoints Sandra Day O’Connor as first female justice of SCOTUS › Anthony Kennedy, Antonin Scalia, William Rehnquist new chief justice

 Mikhail Gorbachev, new premier of Soviet Union › Glasnost (openness) and Perestroika (reform) › 1986: Reagan and Gorbachev begin series of meetings › 1987: USSR pulls support for other communists › 1989: Every communist government in Eastern Europe falls  1989: Tiananmen Square protest in China unsuccessful—brutally suppressed  1991: Unsuccessful coup precipitates fall of USSR › Gorbachev remains in power w/ military support › Soviet republics begin declaring independence from Russia › Gorbachev resigns as leader of Communist Part › Soviet Union ceases to exist, replaced by Russian Federation

 Series of scandals flow from EPA, CIA, Defense Department, Department of Labor, Justice Department, and HUD  Deregulation of Savings & Loan Industry causes widespread corporate corruption, fraud › Government saves industry from near collapse  Iran-Contra Scandal › Scandal breaks in 1986 › Reagan Administration admits selling weapons to Iran in unsuccessful attempt to have Americans held by Islamic terrorists released › Money from weapons sale illegally transferred to Nicaraguan Contras

 1986: Amid scandals, Democrats regain control of the Senate  1988: Democrats nominate Gov. Michael Dukakis › Vice President George H. W. Bush on Republican ticket › Both candidates seen as dull, fail to win enthusiasm  Bush runs a long, negative attack campaign › Ties Dukakis to all the stances Americans saw as “liberal” › Considered one of the most negative of 20 th Century › Marks political aggressiveness of the New Right  Bush wins election on promise to lower deficit and not raise taxes  Democrats remain in control of Congress

 Bush oversees demise of Soviet Union › Also seen as unthreatening by Americans, high approval  Negotiates far reaching arms reduction treaty  Political gridlock on domestic issues › Folds to congressional pressure to raise taxes in exchange for long range budget aimed to reduce federal deficit  Recession of causes bankruptcies › Caused by high corporate and individual debt › Congress rejects capital gains tax cut › Demand rises for government to control cost of healthcare

 Collapse of USSR, leaves US as only superpower › Movement to reduce military, focus on domestic issues › Some want to use power to protect interests  1989 invasion of Panama  1990: Iraq invades oil-rich Kuwait › Bush convinced world to support trade embargo of Iraq › United Nations authorizes military action, Jan. 15 deadline › Jan. 16, 1991: US and allies bomb Iraqi forces and bases › Gen. Norman Schwarzkopf leads Operation Desert Storm › Feb. 28, 1991: Iraq accepts demands of US and allies  Gulf War angers many Muslims › United States seen as bully among Islamists