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