chapter america looks to the futuregorbachev knew that the soviet union was in deep economic...

CHAPTER

1980 1982 1984 1986 1988 1990

UNITED STATES

WORLD

1981 Ronald Reaganbecomes president ofthe United States.

1987 The U.S. stockmarket crashes in

October.

1988GeorgeBush iselectedpresident.

1991 Aninternational

coalition led bythe United States

launches a groundattack in the

Persian Gulf War.

Build on What You Know

During the 1970s the Watergatescandal and the Iran hostage

crisis shook the faith of manyAmericans. When Ronald Reaganbecame president in 1981 he offered new hope and supportedmany conservative changes.However, he and his successor,George Bush, also faced many foreign and domestic challengeswhile in office.

926 Chapter 31

1981 Great Britain’s PrinceCharles weds Lady DianaSpencer in a ceremonyviewed by an estimated 700million people worldwide.

1986 The Chernobylnuclear accident takes

place in Ukraine, inthe Soviet Union.

1989 Germans teardown the Berlin Wall.

1991 TheCommonwealth of Independent

States is formed,replacing the former

Soviet Union.

Germans celebrated their greater civil freedoms bytearing down the Berlin Wall.

President Reagan andSoviet leader MikhailGorbachev met inMoscow in 1988.

U.S. troops fighting in the Persian Gulf Warwore camouflage to blend into the desertlandscape of Kuwait and Saudi Arabia.

The marriage of LadyDiana and Prince Charlesdrew worldwide attention.

America Looks to the Future

(1980–Present)

1992 1994 1996 1998 2000

2001 On September 11,terrorists attack theWorld Trade Center and the Pentagon.

You Be the HistorianWhat’s Your Opinion? Do you agree or disagreewith the following statements? Support your pointof view in your journal.

• Economics Economic conditions affect a country’s political situation.

• Global Relations Domestic politics affect a nation’s foreign relations.

• Science, Technology & SocietyTechnological changes both solve and create problems.

927

1992DemocratBill Clintonis electedpresident.

1993 The Senatepasses the NorthAmerican FreeTrade Agreement.

1995 TheDayton peaceaccords aresigned, bringingan end to theBosnian war.

1997 Pacific Rimcountries suffer a steep

economic recession.

1999 Eleven membersof the European Union

adopt a singlecurrency, the euro.

President George W. Bush greets firefighters while touring the rubble of the World Trade Center after the September 11, 2001, attack.

If you were there . . .What changes would

you make in government policy?

The Sojourner roverexplored the surface ofMars and analyzed thisrock to learn about theplanet’s soil.

2000 Hundreds ofpeople are killed asfighting breaks outbetween Israelis andPalestinians.

Each of the 11 differentversions of the euro hasan image or symbol ofthe member nation thatdesigned it.

1997 ThePathfinderspacecraftlands onMars.

928 Chapter 31

The Story Continues

During Ronald Reagan’s first week as president, he waseager to explore his new home. In the White House, he

flipped light switches and looked in closets. He even paid a sudden visit to the kitchen, startling the cooks. One morningthe Marine Band played “Hail to the Chief” as he ate breakfast.Reagan loved the show but promised the musicians that hewould not expect the performance every day. A Reagan aideexplained that although the president was “impressed with thehistory of it all, . . . he’s not overwhelmed.” Reagan’s obviousease in his all-important position reassured many Americans.

Read to Discover1. How did President Reagan hope to balance the budget? 2. What were the major issues in foreign affairs during

Reagan’s presidency?3. What political events took place in the Soviet Union

during Reagan’s presidency?

Define• supply-side economics

• deficit

• perestroika

• glasnost

Identify• Walter Mondale

• Geraldine Ferraro

• Sandinistas

• Contras

• Iran-Contra affair

• Mikhail Gorbachev

• Intermediate-Range Nuclear Forces Treaty

Reagan in Office When President Reagan came into office, he aimed to balance thebudget, reduce regulations on business, and expand the military. He alsowanted to cut taxes and reduce the size of the federal government. In his1981 inaugural address, Reagan shared his views on the proper role ofgovernment.

The Reagan YearsThe Reagan Years

Ronald Reagan posed for thisphoto at his ranch in Santa

Barbara, California.

KEY-TERM FOLD Create the “Key-Term Fold”FoldNote described in the Appendix. Write a keyterm from the section on each tab of the key-termfold. Under each tab, write the definition of the key term.

Reading StrategyReading Strategy

Ronald Reagan Character Trait: Citizenship

Ronald Reagan was born inTampico, Illinois, in 1911. Hebecame a well-known actor,twice serving as president of the Screen Actors Guild. Reagan’s experience as anactor would later help him inpolitics. He became a Republi-can in part because he believedthe Democratic Party focusedtoo much on social reform.

Reagan gained nationalpolitical recognition in 1964,when he gave campaignspeeches for Republican presidential candidate BarryGoldwater. Two years later,Reagan’s combination of wit,positive thinking, and conser-vative politics helped him winelection as governor of California. He told voters, “It is time we ended our obsessionwith what is wrong, and real-ized how much is right.” Hecarried this message with himto the White House. In whatways did Reagan serve hiscountry before becomingpresident?

America Looks to the Future 929

“Government is not the solution to our problems; govern-ment is the problem. . . . It is not my intention to do awaywith government. It is, rather, to make it work—work withus, not over us.”

—Ronald Reagan, First Inaugural Address

Reagan quickly put his new economic plan into place. His policies,which some called Reaganomics, were based on an idea called supply-side economics. According to this theory, the government could balancethe budget by first cutting taxes. This would increase personal incomeand business profits. People would then save or invest this extra income,thus causing the economy to grow and creating new jobs. Over time thisgrowth in business activity would create greater tax revenues, or moneycollected from taxes, which would help balance the budget.

Reagan’s supply-side economic policies did lead to higher businessprofits and tax revenues. However, defense spending increased from $134billion in 1980 to some $250 billion in 1985. In the end, defense and otherfederal spending grew faster than the new tax revenues and budget cuts.This caused a dramatic increase in the deficit—the amount by which agovernment’s spending exceeds its tax revenues. The economy was start-ing to boom by 1983. However, some of Reagan’s critics noted that noteveryone was able to enjoy this new wealth. Unemployment increased toabout 10 percent in 1982 and 1983. It was particularly high amongAfrican Americans and Hispanics.

To support Republican policies, Reagan appointed conservativejudges to the Supreme Court. During Reagan’s presidency, Sandra DayO’Connor, Antonin Scalia, and Anthony Kennedy joined the Court.These justices gave the Supreme Court a more conservative outlook.

The Republican Party nominated Reagan to run again in 1984. TheDemocrats chose Walter Mondale, Jimmy Carter’s vice president, astheir candidate. Mondale selected Geraldine Ferraro, a congressmemberfrom New York, as his running mate. She became the first woman to runfor vice president on a major-party ticket. Ferraro explained why hercandidacy was important.

“By choosing an American woman to run for our nation’ssecond-highest office, you send a powerful signal to allAmericans. . . . We will place no limits on achievement. If wecan do this, we can do anything.”

—Geraldine Ferraro, Ferraro: My Story

Although Mondale said that Reagan’s economic policies greatly favoredthe wealthy, voters gave the president credit for the economic good times.Reagan won in a landslide, capturing 525 electoral votes to Mondale’s 13.

✔ Reading Check: Summarizing What steps did president Reagan take toimprove the economy, and what were the results?

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Analyzing Primary Sources Drawing Inferences and Conclusions Why do youthink that Ferraro believedher nomination would “senda powerful signal”?

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Reagan’s Foreign PolicyPresident Reagan held strong anticommunist views and called for moredefense spending and military intervention. For example, he sent U.S.Marines to Lebanon in 1982 as part of an international peacekeeping mission. After terrorist attacks against the U.S. Embassy and a marineheadquarters in Lebanon resulted in the deaths of more than 300 people,Reagan pulled the marines out in February 1984. In October 1983 Reagansent U.S. troops on a brief and successful mission to topple the pro-communist government of Grenada. This action was part of Reagan’sstrong anticommunist policy in Central America and around the world.He declared that the Cold War was a fight of “good versus evil, rightagainst wrong.”

In the early 1980s the United States again became involved in CentralAmerican politics. The country raising concerns this time wasNicaragua. Reagan believed the Sandinistas, the revolutionary politicalparty that was in power, were Communists. He cut off all aid toNicaragua and began backing anti-Sandinista rebels called Contras.Fearing a new war, Congress banned the U.S. government from sendingmilitary aid to the Contras.

In the mid-1980s issues surrounding Contra aid became a nationalcontroversy. In 1983, Iranian terrorists in Lebanon took some Americanshostage. Then, in secret dealings, they offered to free the hostages inreturn for U.S. weapons for Iran. Oliver North, a U.S. national securityaide, arranged the secret deal. Such a trade of arms for hostages violatedthe U.S. policy against dealing with terrorists. North passed the profitsfrom the sales to the Contras, violating Congress’s ban on Contra aid.

In 1986 the Iran-Contra affair—the name given to the secret armsdeal—became public. Afterward, President Reagan swore that theUnited States had not traded weapons for hostages. Nevertheless, Con-gress held hearings on the Iran-Contra affair. The investigation turnedup no proof of illegal actions by the president.

✔ Reading Check: Analyzing Information What were the key issues sur-rounding the Iran-Contra affair?

Free Find:Reagan on CommunismAfter reading Ronald Reagan’s speech on communism on the HoltResearcher CD–ROM,write a letter to a memberof Congress explainingwhy you agree or disagreewith Reagan’s view ofcommunism.

Contras Nicaraguan Contrarebels train for their militaryeffort to overthrow the Sandinistas. Why might U.S.military aid be particularlyvaluable to small groups such as this one?

Interpreting the Visual RecordInterpreting the Visual Record

As a result of new U.S.-Sovietarms agreements, U.S. PershingII missiles like this one wereremoved from Europe.


U.S.-Soviet RelationsDuring his first term, President Reagan called the Soviet Union an “evilempire” and refused to hold any arms-limitation talks with the Soviets.In addition, Reagan expanded the U.S. defense budget and called for thedevelopment of the Strategic Defense Initiative (SDI). This proposeddefense system would use space-based lasers to shoot down incomingmissiles. Congress approved $26 billion to develop SDI, but scientistswere unable to produce a working version.

In 1985 Mikhail Gorbachev became the new Soviet leader.Gorbachev knew that the Soviet Union was in deep economic trouble. Hebegan a series of political and economic changes, known as perestroika,that sought to restructure the Soviet economy. He also started a policy of political openness and freedom of expression called glasnost.Gorbachev’s reforms led to reduced Soviet defense spending and cuts ineconomic support for other communist nations. They also resulted in the first free elections held in the Soviet Union since the earliest days ofthe Soviet state.

These changes led to a softening of Reagan’s hard-line stand in theCold War, and he met with the Soviet leader in November 1985. He soonbelieved that Gorbachev was truly working to change the Soviet Union.In December 1987 the two leaders signed the Intermediate-RangeNuclear Forces Treaty (INF). The INF Treaty called for the eliminationof all medium-range nuclear weapons from Europe. For the first time inalmost 10 years, Cold War tensions between the United States and theSoviet Union were easing.

✔ Reading Check: Finding the Main Idea How did the Soviet Unionchange politically during Reagan’s presidency?

Section Review11keyword: SC5 HP31

Define and explain:• supply-side economics• deficit• perestroika• glasnost

Identify and explain:• Walter Mondale• Geraldine Ferraro• Sandinistas• Contras • Iran-Contra affair• Mikhail Gorbachev• Intermediate-Range

Nuclear Forces Treaty

2

1 Summarizing Copy thegraphic organizer below.Use it to explain thechanges in domestic andforeign policies duringPresident Reagan’sadministration.

3 Finding the Main Ideaa. What did President Reagan do to balancethe budget and improve the economy?

b. What political policies were introduced inthe Soviet Union while Reagan was in office?

Writing and Critical Thinking Supporting a Point of View Imagine thatyou are a newspaper reporter. Write an edito-rial explaining whether you think PresidentReagan successfully addressed key foreign-policy issues.

Consider the following:• Reagan’s opposition to communism• U.S. policy to not negotiate with terrorists• U.S. law preventing aid to the Contras

5

4

Ronald Reagan’s Presidency

U.S.-SovietRelations

Economy

DefenseSpending

932 Chapter 31

The Story Continues

By late May 1988, Republican candidate George Bush was far behind in presidential election polls. Over the

Memorial Day weekend, Bush met with his campaign teamto come up with a new campaign strategy. Bush’s adviserstold him to go on the offensive and to stress just a fewthemes. Bush focused on his patriotism, his tough positionagainst crime, and his ability to continue the Reagan prosperity. During the rest of the campaign, Bush steadilyrepeated these messages over and over again. On electionday, he won a stunning victory, taking 40 of 50 states.

Read to Discover1. What challenges did President George Bush face at home

and abroad? 2. What events led to the final breakup of the Soviet Union?3. What were some significant events during President Bill

Clinton’s term in office?

Identify• George Bush

• Michael Dukakis

• Saddam Hussein

• Persian Gulf War

• Americans with Disabilities Act

• Bill Clinton

• North American Free TradeAgreement

• Bob Dole

Bush in OfficeIn the election of 1988, Vice President George Bush faced DemocratMichael Dukakis. After a hard-fought campaign, Bush won a sweepingvictory. He received 426 electoral votes to just 111 for Dukakis.

As Bush began his term, Soviet leader Mikhail Gorbachev continuedto push for changes that moved his country toward democracy and

George Bush selected Indianasenator Dan Quayle as his running mate in the 1988

presidential campaign.

The Bush and ClintonAdministrationsThe Bush and ClintonAdministrations

TWO-PANEL FLIP CHART Create the “Two-Panel Flip Chart” FoldNote described in theAppendix. Label the flaps “Domestic Policies” and“Foreign Affairs.” As you read the section, writeinformation you learn about each topic under theappropriate flap.


CONNECTIONS

The Fall of theBerlin Wall

Encouraged by new freedomsin the Soviet Union, many EastGermans began demandingsimilar rights. Protests pushedthe East German governmentin 1989 to end its restrictionson crossing into the West.Thousands of people gath-ered for the opening of thegates. At midnight, theystreamed into the westernside. Celebrators began to dismantle the Berlin Wallpiece by piece. Other peopledanced on top of the wall.Some chanted, “The Wall isgone, the Wall is gone.”

The Berlin Wall was perhaps the most hated sym-bol of communist rule in East-ern Europe. One Americanexplained the meaning of the wall’s destruction. “It[removal of the wall] showsthe indomitability [strength]of the human spirit.” Howand why was the Berlin Wall torn down?


weakened the Communist Party. Eastern European countries began toremove their Communist leaders from power. In November 1989, pro-Democracy Germans tore down the Berlin Wall. West Germany andEast Germany officially came together as one country in October 1990.

The changes sweeping Eastern Europe also spread to the SovietUnion. Several Soviet republics declared independence. In Moscow,hard-line Communists tried to stop the breakup of their country. Theytook Gorbachev hostage and sent troops into the streets. Many of thesoldiers, however, joined with the crowds of pro-Democracy demon-strators, who were led by Boris Yeltsin. The hard-liners admitted defeat.Soon, the Soviet Union was broken apart. Soviet Communism had been defeated. The Cold War was over.

As the Cold War was ending, tensions were growing in the MiddleEast. In August 1990 Iraq, under its leader Saddam Hussein (sah-DAHM hoo-SAYN), invaded neighboring Kuwait. The United Nationscondemned the invasion, and many people worried that Iraq mightinvade other countries as well. In the Persian Gulf War, the UnitedStates led a coalition of 30 countries in a military effort to drive Iraqfrom Kuwait. The attack was a stunning success. Within days, Iraqagreed to a cease-fire. Saddam Hussein was forced to accept strict limitson his military operations. Yet he remained in power in Iraq.

More than 35,000 U.S. women served in the Persian Gulf War innoncombat roles. Their service helped spark debate over women’s rolesin the military. In November 1991 Congress voted to allow women toserve as combat pilots.

As the nation dealt with tensions abroad, on the home front, Presi-dent Bush faced a costly crisis in the savings and loan (S&L) industry.S&Ls are institutions in which people and businesses invest their sav-ings. S&Ls loan out this money to individuals and businesses. DuringPresident Reagan’s term in office, the government changed the rulesabout how S&Ls could invest money. As a result, many S&Ls made badloans. In some cases, S&L officials acted illegally. In August 1989 Presi-dent Bush authorized $166 billion to help end the crisis.

Another issue President Bush faced was the growing U.S. drug prob-lem. He increased support for the War on Drugs, an effort to end thetrade and use of illegal drugs. As part of this effort, in December 1989President Bush authorized a military invasion of Panama to capture thecountry’s dictator, Manuel Noriega, a known participant in the drugtrade. Noriega was convicted of drug smuggling and was sent to prison.

In 1990 President Bush signed an update of the Clean Air Act. Alsoin that year, Bush launched the Americans with Disabilities Act (ADA).The ADA guarantees people with disabilities equal access to publicplaces, transportation, and employment opportunities.

✔ Reading Check: Cause and Effect What were some of the major issuesPresident George Bush faced during his administration?

The Clinton PresidencyBy 1991 the U.S. economy had begun to stall. In addition, the huge costof the S&L bailout had helped force President Bush to break his 1988campaign promise not to raise taxes. As a result, President Bush facedstrong challenges from Democratic nominee Bill Clinton and fromindependent candidate Ross Perot, a billionaire businessman, in the1992 presidential election.

On election day none of the three candidates received a majority ofthe popular vote. However, Clinton won the election with 370 electoralvotes to 168 for Bush. As he took office, Clinton spoke of the need toimprove the nation’s economy:

“We must invest more in our own people, in their jobs, intheir future, and at the same time cut our massive debt. . . .We must do what America does best: offer more opportunityto all and demand responsibility from all.”

—Bill Clinton, First Inaugural Address

In his first term, President Clinton helped persuade Congress to passthe North American Free Trade Agreement (NAFTA), which tookeffect on January 1, 1994. NAFTA helped establish free trade betweenthe United States, Canada, and Mexico. This means it removed barriers

to trade, such as tariffs. NAFTA’s critics wor-ried that it would cost American workerstheir jobs. One reason for this worry wasthat foreign companies often paid lowerwages than American companies. As aresult, they could charge low prices for theproducts they made. NAFTA’s supporters,however, believed the agreement would helpopen new markets for American goods andservices.

President Clinton also tried to develop aplan for providing health insurance cover-age for all Americans. However, this planfaced strong opposition and failed to gainacceptance.

In 1994, as congressional electionsapproached, House minority whip NewtGingrich of Georgia and others created acampaign pledge called the Contract withAmerica. Many Republican candidatessigned the contract, which promised asmaller government and a balanced budget.The contract also included tax reforms and

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Bill Clinton became the first Democratic president

in 12 years.

The Poetry of Maya Angelou

Many Americans saw the 1990s as a time of challenge and change. Poet Maya Angelouexpressed her hopes for the future in a poem she read at President Clinton’s inauguration in 1993.

L ift up your faces, you have apiercing need

For this bright morning dawning for you.History, despite its wrenching pain,

Cannot be unlived, and if facedWith courage, need not be lived again.

Understanding What You ReadLiterature and History What historical events do you think Angelou was referring to with the words “wrenching pain”?

LiteratureCONNECTING TO

934 Chapter 31

During President Clinton’s sec-ond term in office, the UnitedStates took part in militaryaction in the European countryof Yugoslavia. The action wasaimed at protecting a minoritypopulation that was underattack by its own government.


term limits for members of Congress. Votersresponded, and Republicans gained majorities inboth houses of Congress for the first time in 42years. By the end of 1995, five items in the con-tract had become law.

President Clinton ran for reelection in 1996against Republican senator Bob Dole of Kansas.This time, Clinton received a majority of popularvotes. By an electoral vote of 379 to 159, he wonthe election.

During President Clinton’s second term inoffice, the nation enjoyed great prosperity.The president and Congress reached an agree-ment to eliminate the deficit and balance the federal budget. Meanwhile, the economy enjoyed what would becomethe longest period of growth in U.S. history. By 1999 the federal budgethad a surplus, or extra amount, of $99 billion.

While the economy boomed, the nation faced serious questionsabout President Clinton’s conduct. In 1998, an independent counsel’sreport charged that the president had carried on an improper relation-ship with a White House intern. Further, the report charged Clinton hadlied about the relationship while under oath. For just the second time inU.S. history, the House of Representatives voted to impeach a president.The Senate found Clinton innocent of the charges. However, the scandaland impeachment harmed Clinton’s image.

✔ Reading Check: Categorizing What were the domestic successes andfailures of Clinton’s presidency?


Identify and explain:• George Bush• Michael Dukakis• Saddam Hussein• Persian Gulf War• Americans with

Disabilities Act• Bill Clinton• North American Free

Trade Agreement• Bob Dole

1 Categorizing Copythe chart below. Use itto identify the major issues in both GeorgeBush’s and Bill Clinton’spresidencies.

2 Finding the Main Ideaa. Why did the United States fight a waragainst Iraq, and what was the outcome?

b. How did the budget affect the presidenciesof both Bush and Clinton?

Writing and Critical Thinking Summarizing Imagine that you are a historiangiving a lecture on the Soviet Union. Write athree-paragraph essay that describes the factors that caused the final breakup of theSoviet Union.

Consider the following: • causes of political change• events leading to the breakup• outcomes of political change

4

3

Successes

Challenges

Bush Clinton

936 Chapter 31

The Story Continues

With the economy apparently going strong, the 2000presidential election focused on issues such as foreign

policy. The United States was now the world’s only superpower.Americans debated the role U.S. troops should play

in the world—and how President Clinton had ordered theiruse in various peacekeeping and humanitarian missions inEurope and Africa during the 1990s. The candidates alsodebated the issue of whether taxes should be reduced. Thenation was closely split on these matters, leading to one ofthe most controversial elections in U.S. history.

The 2000 Election In 2000 the Democrats held their national convention in Los Angeles.There they nominated Vice President Al Gore as their presidential can-didate. Gore chose Connecticut senator Joe Lieberman as his runningmate. Gore and Lieberman promised to keep paying down the nationaldebt, which had been built up by years of deficit spending. Theypromised to strengthen environmental protections. They also pledged to

George W. Bush in OfficeGeorge W. Bush in Office

Bumper sticker from the 2000 election campaign.

Read to Discover1. What were the issues debated in the 2000 election?2. What made the election itself so unusual? 3. What issues and challenges did George W. Bush face as he

took office?

Define• recession

• terrorism

Identify• Al Gore

• George W. Bush

• No Child Left Behind ActOUTLINING Use the headings in this section to create an outline. Asyou read the section, write the main ideas and details you learn beneaththe headings.


use the government surplus that had developed during PresidentClinton’s administration for education and health care.

Republicans nominated George W. Bush, the governor of Texas andthe son of former president George Bush, as their candidate. Bush choseformer secretary of defense Dick Cheney as his running mate. Bushpledged to cut federal taxes. He also promised to be cautious in usingmilitary force abroad. Gore made a similar promise.

The election of 2000 was unlike any in recent memory. The vote wasso close that several states could not quickly declare a winner. ThoughGore won more popular votes nationwide than Bush, he did not receivea majority of electoral votes.

It became clear that the candidate who won the popular vote inFlorida and received its 25 electoral votes would become president. Thevote there was so close that the state ordered a recount. This recount,performed by ballot-counting machines, showed Bush as the winner bya tiny margin. However, the machines were unable to read a significantnumber of ballots. Gore then asked that four counties recount their bal-lots by hand. The Bush campaign tried to stop this recount in court.Other challenges over absentee ballots, voter registration, and the designof the ballot arose.

As a result, the nation waited five weeks without knowing the out-come of the election. The Florida Supreme Court decided to allow man-ual recounts. The Bush campaign appealed this decision to the U.S.Supreme Court. In a 5-to-4 vote, the Court called an end to the recount-ing of ballots. Bush was named the winner in Florida by a margin ofseveral hundred votes, and he received the state’s 25 electoral votes. As aresult, he became the first president in more than 100 years to win theelectoral vote but lose the popular vote.

✔ Reading Check: Summarizing What made the election of 2000 so unusual?

The Bush PresidencyPresident Bush had won a close election. In his inauguration speech, hecalled for Americans to help one another.

“I ask you to seek a common good beyond your comfort; . . .I ask you to be citizens. Citizens, . . . not subjects.Responsible citizens, building communities of service and a nation of character.”

—George W. Bush, Inaugural Address

During his first weeks in office, President Bush sent an educationreform package and a plan for tax cuts to Congress. He also appointedhis cabinet, which included former general Colin Powell as the firstAfrican American secretary of state.

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Election Drama Can you imag-ine not knowing whether youwon or lost the presidency?Well, it happened to Al Goreand George W. Bush. OnNovember 7, 2000, all themajor networks announcedthat Gore had won Florida and the presidency. But byearly next morning most networks had changed andwere calling George W. Bushthe president-elect. Gorecalled Bush to concede theelection, but after furthercounting narrowed Bush’s lead in Florida, Gore calledagain—to take back his concession! Not until theSupreme Court ruled on theFlorida vote recount was Gorecomfortable in conceding victory to Bush.

� � � � � � � � � � � �

� � � � � � � � � � � �

That’s Interesting!

938 Chapter 31

The newly seated Congress was almost equally divided betweenRepublicans and Democrats. In the House of Representatives, theRepublicans maintained a small majority. The Senate was split 50–50,with Vice President Cheney holding the tie-breaking vote. However, thebalance of power shifted again when Jim Jeffords, a senator from Ver-mont, left the Republican Party to become an independent in 2001. Withone less Republican in the Senate, the Democratic Party gained controlof the Senate for the first time since 1994.

The near-deadlock in Congress forced each party to compromise onsome of its issues. One of these issues was tax cuts. On June 7, 2001, Pres-ident Bush signed into law a $1.35 trillion tax-cut plan that includedmuch of the tax relief that he had promised during his campaign.

President Bush also worked with members of both parties on educa-tion reform. In early 2002 he signed the No Child Left Behind Act. Thisact required states to establish education standards. Schools would beevaluated based on how well they met those standards. The act alsosought to promote more schooling options for families, includingcharter schools. Charter schools are special public schools that operateunder a different set of rules than those in the regular public schoolsystem. Many educators hailed the No Child Left Behind Act. Otherscomplained that it did not include enough funds to help states makereal changes to the education system.

Bush’s Economic PoliciesIn 2002 the Republican Party enjoyed great success in the national elec-tions. The Republicans regained control of the Senate and maintainedtheir hold on the House of Representatives. The president and Republi-cans in Congress used their new power to pass another large tax cutpackage in 2003. Some Democrats argued that the package granted toomany benefits to the nations’ wealthiest Americans. Others worriedabout the return of budget deficits, which were expected to approachrecord size.

Inauguration day George W.Bush’s inaugural celebrationwas a blend of Washingtonand Texan styles. Based on thisphotograph, what sort of tonedo you think President Bush istrying to set in the WhiteHouse?



President Bush and his supporters believed that the tax cuts wouldhelp boost a sagging economy. When Bush took office in 2001, the longperiod of economic growth that had occurred throughout much of the1990s had come to a halt. The nation had entered into a recession—aperiod in which overall economic output declines.

Though this recession ended quickly, the economy remained shaky.The stock market failed to achieve the spectacular gains of the 1990s.Through late 2003, the nation had fewer jobs than when President Bushtook office.

President Bush and his advisers believed the cuts would help resolvethese problems. Consumers, they argued, would use tax cut money tomake purchases. President Bush hoped this spending would help busi-nesses grow and produce jobs. An economic recovery was increasinglyimportant to President Bush as he approached the presidential electionin 2004.

The economy had also been dealt a serious blow in the fall of 2001.On September 11, the nation suffered a horrific terrorist attack thatdestroyed New York City’s World Trade Center towers, damaged thePentagon, and claimed almost 3,000 lives. These attacks seriouslyharmed several industries, most notably the airline industry. This dam-age contributed to the nation’s economic problems.

The attacks also forced the United States to face an ongoing threat ofterrorism—the use of violent attacks by individuals or small groupswith political goals. You will read more about the U.S. response to ter-rorism in Section 5.

✔ Reading Check: Finding the Main Idea Why do you think the economybecame a special concern for President Bush as 2004 approached?


Define and explain:• recession• terrorism

Identify and explain:• Al Gore• George W. Bush• No Child Left Behind

Act

2

1 Summarizing Copythe graphic organizerbelow. Use it to explainkey features of GeorgeW. Bush’s election andearly years in office.

3 Finding the Main Ideaa. What factors made George W. Bush’s election in 2000 so controversial?

b. What were President George W. Bush’spolicies regarding taxes?

Writing and Critical Thinking Analyzing Information Imagine you are an American taxpayer. Write a letter to the president expressing your feelings about hisincome taxe cuts in the early 2000s.

Consider the following: • President Bush’s campaign promises• the growing federal deficit• the need to stimulate the economy

5

4

George W. Bush’s Presidency

MajorChallenges

Election

MajorAchievements

The stock market In the early2000s, stock markets that had performed well throughoutmuch of the 1990s sufferedsome steep losses. How doesthis photograph reflect thisdecline?


940 Chapter 31

The Story Continues

Teenagers Maria Perez, Fabiola Tostado, and Nevada Dovespent hours studying test results, chemical analyses, and

groundwater-safety studies. The girls were not preparing for aschool test. These young activists were preparing to meet withlocal community leaders. They lobbied for the temporary closing of a middle school so that hazardous chemicals couldbe cleaned up at the site.“We’re the new generation,” Doveexplained.“One day you’re going to have to stand up . . . forsomething you believe in. Why not get an early start?”

Read to Discover1. What concerns did people have about the environment at

the start of the new century? 2. What economic trends did the international community

experience at the start of the new century?3. What scientific and technological developments took place

around the turn of the century?

Define• ozone layer

• global warming

Identify• International Space Station

• European Union

• World Trade Organization

• Information Revolution

• Internet

American Cultureand SocietyAmerican Cultureand Society

Recycling is one of the many ways that students

and communities are takingaction to protect the

environment.Challenges for a New Millennium

During the 1990s, some countries worked together to solve environ-mental problems. One such challenge was the thinning of the ozonelayer. This thin layer of gas in the upper atmosphere keeps harmfulsolar rays from reaching Earth’s surface. Some scientists predicted that athinning of the ozone layer would lead to more cases of skin cancer.

PREDICTION GUIDE Before you read this section, use the head-ings to predict the main ideas of each section. Write your predictionson a sheet of paper. As you read, check your predictions and confirmor revise them.



Another issue of concern was global warming. Some scientistswarned that a greenhouse effect is trapping heat in the Earth’s atmo-sphere, thus raising the planet’s temperature. They blamed the burningof forests and fossil fuels for this climate change and warned that itcould have dangerous results. In 2000 a United Nations report predicted Earth’s average temperature could rise between 3 and 11degrees during the next 100 years.

Space 2000 and BeyondIn the 1980s the United States began to explore space in a reusablespacecraft called the space shuttle. However, in 2003 disaster struckwhen the shuttle Columbia broke apart while preparing to land. Allseven astronauts aboard were killed. NASA suspended shuttle flightswhile it investigated the cause of the disaster. By late 2003, NASAplanned the shuttle’s return to space in 2004.

Another major project NASA took part in was the InternationalSpace Station (ISS). Beginning in late 2000, rotating teams of U.S.and Russian scientists have lived continuously on the ISS while carryingout research.

In the first years of the new century, NASA also continued its explorations of Mars. Remote-controlled vehicles such as Pathfindercollected samples designed to help scientists learn whether Mars mayhave once had as much water as Earth.

✔ Reading Check: Categorizing What challenges did scientists faceregarding the environment and space in the 1990s and 2000s?

Young EnvironmentalistsYouth are often among themost vocal and active mem-bers of the environmental-protection movement. Letter-writing campaigns, petitions, and volunteering for cleanup efforts are common tactics. Manyteenagers use the Internet to become informed andinvolved in global environ-mental issues. Here a group ofchildren pose in front of amural at the 1992 Earth Summit in Rio de Janeiro. Howare students taking action toprotect the environment?

942 Chapter 31

Economic Trends During the 1990s, the United States recovered from a recession andexperienced the longest period of economic growth in the nation’s his-tory. A major feature of the economy in the 1990s was the increase ininternational trade. The rise of multinational corporations—companiesthat do business in more than one country at a time—also shaped theworld economy.

Some nations even joined together to increase their global economicpower. In 1993, a total of 12 countries of Western Europe joined to formthe European Union (EU). The EU joined member nations’ economiesinto a single market with a common currency—the euro—and a com-mon central bank.

As countries exported more goods, governments saw the need to forman organization that would set rules for international trade. In 1995, some128 nations joined together in the World Trade Organization (WTO).The WTO supervises international trade. By November 30, 2000, thenumber of members in the WTO had risen to 140 countries. More than30 more countries, including China, were in the process of negotiatingmembership. The WTO is just one organization through which countrieswork to keep the world economy strong. The United States still looks fornew ways to support economic stability throughout the world.

China

Central andSouth America

EuropeanUnion

Some U.S. leaders hope that free-trade agreements will open foreign

markets to more U.S. exports.

UNITED STATES220

165

73

59

Mexico136

112Japan

65

146

100

Canada

16

229

179

U.S. Exports

U.S. Imports

Figures are in billionsof U.S. dollars, roundedto the nearest billion.

Global Trade 2000

The United States conducts billions of dollars worth of trade with foreign nations each year.

Visualizing History1. Economics What was the total value of U.S. exports

to and imports from the regions shown above?2. Connecting to Today Why would it benefit the

United States to export more than it imports?

942 Chapter 31

Economic Trends During the 1990s, the United States recovered from a recession and experi-enced the longest period of economic growth in the nation’s history. Amajor feature of the economy in the 1990s was the increase in internationaltrade. The strong economy was favorable to the exchange rate, or the inter-national value of the nation’s currency. This means that American dollarshad a high value when compared with the currency of other countries.

In Europe, 25 nations joined together to form the European Union(EU). The EU has joined members’ economies into a single market.Most EU nations use a common currency—the euro. In the WesternHemisphere, every nation except Cuba considered a plan to form a FreeTrade Area of the Americas. This would lower trade barriers for allmember nations.

As countries exported more goods, governments saw the need to form an organization that would set rules for international trade. In1995, some 128 nations joined together in the World Trade Organiza-tion (WTO). The WTO supervises international trade, and by late 2003had grown to nearly 150 countries. The WTO is just one organizationthrough which countries work to keep the world economy strong. TheUnited States continues to look for new ways to support economic sta-bility throughout the world.

Canada

China

Japan

Mexico Central andSouth America

EuropeanUnion

UNITED STATESSome U.S. leaders hope that free-

trade agreements will open foreignmarkets to more U.S. exports.

161

209

22

125

51

121 97

135

52

70

144

226

U.S. Exports

U.S. Imports

Figures are in billionsof U.S. dollars, roundedto the nearest billion.

CF05SFC31INF001A

Global Trade 2000

The United States conducts billions of dollars worth of trade with foreign nations each year.

Visualizing History1. Economics What was the total value of U.S. exports

to and imports from the regions shown above?2. Connecting to Today Why would it benefit the

United States to export more than it imports?

CONNECTING TOCONNECTING TO

ECONOMICSECONOMICS

InterdependenceThe World Trade Organiza-tion helps illustrate thegrowth of the globaleconomy and interdepend-ence. In the past, much eco-nomic activity took place insmall markets—for example,neighborhoods or cities.Today, a growing share ofeconomic activity takes placein a market as big as theglobe. American businessescompete with companies allaround the globe, and U.S.workers compete for jobswith workers in other coun-tries. One effect of this globaleconomy is that countries aremore interdependent, mean-ing they rely more heavily onthe success and stability ofeach other’s economies. Howdoes today’s global economydiffer from the economy ofthe past?


The Information RevolutionTechnology was an important factor contributing to the U.S. economicboom of the 1990s. In the 1990s, computers made it easier and faster forpeople to access and transfer information. This development was calledthe Information Revolution. Computers became necessary tools inbusiness, education, and every activity that requires the organizationand processing of information. In the 1980s new technologies linkedcomputers via networks so that they could communicate and transferinformation to one another. Over time, different computer networksformed a worldwide link called the Internet, which allowed people any-where in the world to share information.

Use of the Internet grew remarkably during the late 1990s. BillGates, a leading figure in the computer industry, saw the growth of theInternet as a major step in the Information Revolution.

“We are watching something historic happen, and it willaffect the world . . . the same way the scientific method, the invention of printing, and the arrival of the IndustrialAge did.”

—Bill Gates, Newsweek, November 1995

Internet growth and the high-tech industry helped fuel the economicgrowth of the 1990s. By the late 1990s and early 2000s, many high-techfirms struggled or even collapsed, but others, such as Intel, remainedstrong. Intel expanded operations, investing billions in its New Mexicoplant and other facilities, and continued to provide jobs.

✔ Reading Check: Finding the Main Idea How have computers affectedthe way people share information?

HistoryMakers

Speak

HistoryMakers

Speak


Define and explain:• ozone layer• global warming

Identify and explain:• International Space

Station• European Union• World Trade

Organization• Information

Revolution• Internet

2

1 Summarizing Copythe diagram below. Use it to identify thechanges that took place in the UnitedStates between 1981and the early 2000s.

3 Finding the Main Ideaa. How did the global economy changearound the beginning of the 2000s?

b. What environmental issues have concernedpeople around the world?

Writing and Critical Thinking Supporting a Point of View Imagine that you are a teacher. Write a letter to a localnewspaper to persuade the community toraise taxes to buy computers for your school.

Consider the following:• how computers have affected the transfer

of information• how computers have affected access to

information• how computers will help students learn

5

4

CONNECTING TOCONNECTING TO

The InternetThe Internet began as a 1960sDefense Department project.However, most people didnot become familiar with this computer network untilthe creation of the WorldWide Web in the 1990s.

The Web makes it easierto use the Internet to accessinformation stored on computers around the world.Many people use the Internetto obtain documents storedon Web sites. For example,the Smithsonian Institution’sWeb site links to hundreds of related sites through itssubject index. The Internetputs an amazing amount of information at people’sfingertips. In what wayscould you use the Internetfor school?

United States1981–2000s

environment:

science &technology:

economy:

944 Chapter 31

The Story Continues

On Tuesday morning, September 11, 2001, it was businessas usual in the downtown financial district of New York

City. In the World Trade Center complex, an estimated 10,000employees were starting their workday. Most of them werewithin the Twin Towers that dominated the Manhattan skyline.On Fifth Avenue a group of pedestrians noticed a large airplanepass overhead. “We all thought it would be unusual for a planeto be flying so low over the city,” recalled one man. Momentslater they witnessed a terrible disaster unfold.

Read to Discover1. How was the United States attacked on September 11,

2001, and how did Americans respond?2. Why did the United States become involved in the war

on Iraq?3. What steps did U.S. leaders take to help ensure the security

of Americans at home?

Identify• World Trade Center

• Pentagon

• Rudolph Giuliani

• Osama bin Laden

• the Taliban

• war on terror

• weapons of mass destruction

• Department of Homeland Security

• USA Patriot Act

The AttackAt 8:48 A.M., an American Airlines passenger jet crashed into the northtower of the World Trade Center. The impact was devastating, as though abomb had struck the 110-story building. Stunned men and women beganevacuating the building as emergency crews rushed to the scene. Then at9:03 A.M. a second plane slammed into the south tower and exploded.

9-11 and Its Aftermath9-11 and Its Aftermath

MAPPING CAUSE AND EFFECT Draw a circle on a sheet of paper.Label the circle “Attacks of September 11, 2001.” As you read the sec-tion, look for the many effects the attacks had throughout the UnitedStates and the world. Write each effect inside of a circle and draw a linefrom it to the cause.


GO TO: go.hrw.comKEYWORD: SS AttackFOR: Web sites about the events of September 11, 2001, and the aftermath

As seen from New York Harbor,smoke, ash, and debris coverdowntown Manhattan afterthe terrorist attacks.

Many Americans saw the second crash broadcast live on televisionand realized that this was not a tragic accident but a deliberate attack. Itwas also soon clear that New York was not the terrorists’ only target. Atapproximately 9:40 A.M. a third plane hit the west side of the Pentagon.Located just outside Washington, D.C., the Pentagon is the headquartersof the U.S. military. The impact of the crash caused massive damage andstarted fires deep within the huge five-sided building.

At the World Trade Center complex, hundreds of rescue workers struggled to aid victims, and firefighters tried to control the raging fires.Then, further disaster struck. Just before 10:00 A.M. the south tower suddenly collapsed, followed half an hour later by the fall of the northtower. The collapse of the massive buildings killed or trapped thousands ofpeople still inside or near the towers, including hundreds of firefighters,police officers, and other rescuers.

A fourth plane was also hijacked and still in the air over southernPennsylvania. Passengers aboard the plane made cell phone calls indicatingthat they had learned of the other attacks and decided to stop the terroristson board from hitting their next target. Flight 93 crashed southeast ofPittsburgh at 10:10, between the times the World Trade Center’s Twin Towers collapsed.

In downtown New York City, clouds of smoke, dust, and ash driftedthrough the streets. Meanwhile, emergency teams battling fires in thePentagon were unable to search for survivors. All 265 passengers andcrew aboard the four hijacked flights had been killed.

✔ Reading Check: Sequencing In what order did the events on the morn-ing of September 11, 2001, take place?

The Nation RespondsIn the days following the attacks, the American people—and theworld—began to realize the scale of the damage. Nearly 3,000 peoplehad been killed in the World Trade Center, including more than 300 firefighters and other rescue workers. At the Pentagon, 189 people,including those in the hijacked plane, were killed.

The spirit of the nation had suffered a serious blow. Political leaderstried to rally the nation. New York City mayor Rudolph Giuliani toldthe people of his city, “We’re going to rebuild and rebuild stronger.”President Bush also spoke to the nation. In a brief speech he said, “Wewill do whatever is necessary to protect America and Americans.”

The attacks also affected the nation’s economy. The New York StockExchange closed for four days following the attacks, the longest closuresince the start of World War I. When it reopened, the exchange had oneof the worst weeks in its history. The airline industry, so vital to theeconomy, also faced a deeply troubled future. Congress rushed to pass a$15 billion relief package to keep the airlines flying.

Firefighters raise an Americanflag over the rubble of theWorld Trade Center towers.

CONNECTIONS

The World Reaches Out

The tragic events of Septem-ber 11, 2001, drew sympathyand support from around theworld. Citizens of more than40 countries were among themissing. The European Uniondeclared September 14 a dayof mourning. British prime minister Tony Blair called theterrorist acts “an attack onthe free and democraticworld everywhere.” TheFrench newspaper Le Monderan a headline saying, “WEARE ALL AMERICANS.” Russian and Chinese leadersgave their condolences. Eventraditional opponents of theUnited States, such as Cubaand Iran, expressed theirsympathy and regret. U.S.leaders gave thanks for thesegestures and worked to forman active coalition againstterrorism. Why might globalsupport be important to theUnited States?


©2001 The Record (Bergen County, NJ), Thomas E. Franklin, Staff Photographer

946 Chapter 31

The people of the United States responded to the attacks with agreat show of unity. Within two days of the attack, Wal-Mart, thenation’s largest retail chain, had sold its entire stock of half a millionAmerican flags. Charitable groups across the country moved to raisefunds for relief efforts. Thousands of people donated blood at Red Crosscenters.

People also came together to heal their emotional wounds and showtheir strength. When professional sports leagues resumed their sched-ules, stadiums were filled with patriotic tributes. At New York City’sYankee Stadium, actor James Earl Jones drew loud cheers as he opened amass prayer service.

“Our spirit is unbroken. In fact, it is stronger than ever.Today we reaffirm our faith in the essential dignity of everyindividual. What we share as Americans and as humanbeings is far greater than what divides us.”

—James Earl Jones, prayer service, September 23, 2001

✔ Reading Check: Summarizing In what ways did Americans first respondto the terrorist attacks?

The War on Terror BeginsAs the public struggled to recover from the attacks, the governmentlaunched the largest criminal investigation in U.S. history. The FederalBureau of Investigation (FBI) placed more than 4,000 special agents onthe case. They quickly identified 19 individuals who they believed hadhijacked the planes involved in the attacks. These men were citizens ofseveral different countries in the Middle East. Several, however, hadbeen living in the United States for many months.

Investigators also quickly identified the man believed to have beenresponsible for the overall planning of the attacks—Osama bin Laden.This wealthy Saudi Arabian had been forced to leave his country andwas now believed to be living in the Central Asian country ofAfghanistan. Bin Laden promoted an extreme version of the Muslimreligious faith. He called for his followers to make violent attacks againstthe United States, which he believed had corrupted Muslim holy landsand oppressed Muslim people. Bin Laden had long been suspected ofattacks on U.S. interests. In 1998 President Clinton had even launched amissile attack against what was thought to be a bin Laden terroristtraining base in Afghanistan. It was from such bases that bin Ladentrained recruits for his global terror network, known as al Qaeda, or“the base.”

Bin Laden survived that 1998 attack. He continued to live inAfghanistan and to train his terror network. Afghanistan itself wasunder the rule of a Muslim religious group known as the Taliban. TheTaliban and bin Laden’s organization had close ties.

HistoryMakers

Speak

HistoryMakers

Speak

Rudolph Giuliani

(1944—)

Character Trait:Cooperation

As mayor of New York City,Rudy Giuliani played a keyrole during the early weeksof the crisis. Coordinatingrelief efforts, consoling vic-tims, and calling for resolveand renewed confidence,he served as an importantsymbol of strength to thecity and the nation as awhole. A national poll con-ducted following theattacks found a 95 percentapproval rating for howthe mayor performed hisduties. How did Giulianiplay a key role in theweeks following the crisisof September 11, 2001?

BIOGRAPHY

Analyzing Primary Sources Drawing Inferences and Conclusions What do youthink James Earl Jones means when he says whatAmericans share is greaterthan what divides them?

As the investigation movedforward, the evidence linking bin Laden and al Qaeda to theattacks mounted. President Bushdemanded that the Taliban coop-erate in capturing bin Laden anddestroying his terrorist operations.The Taliban failed to meet thesedemands. In early October, theUnited States launched a militaryattack in Afghanistan. The goalwas to destroy al Qaeda bases andto remove the Taliban governmentfrom power. The military effortalso involved distributing foodand supplies to the people ofAfghanistan, many of whom livedin severe poverty. In this effort, theUnited States was supported bymany nations around the world,including several Middle Easternand Muslim countries. The UnitedStates also relied heavily on the help of armed opponentsof the Taliban within Afghanistan.

The United States and its allies quickly succeeded inforcing the Taliban from power and in destroying alQaeda training bases throughout Afghanistan. Hundredsof suspected terrorists who had received training fromOsama bin Laden were captured. Many others were killedin combat. By mid-December, the United States believedit had bin Laden himself trapped in a mountain hideout.However, bin Laden was not captured. He had escaped.Nevertheless, his terrorist network was badly damaged.The United States had succeeded in the first military mis-sion of what came to be called the war on terror.

Following September 11, President Bush describedthe attacks as acts of war against the nation. As the battlein Afghanistan wound down, the president vowed to con-tinue to fight.

“Our war on terror is well begun, but it isonly begun. This campaign may not be fin-ished on our watch —yet it must be and itwill be waged [fought] on our watch.”

—George W. Bush, January 29, 2002

✔ Reading Check: Summarizing Why did the United Stateslead an attack on the Taliban?

HistoryMakers

Speak

HistoryMakers

Speak


PRESIDENT BUSH’S ADDRESS TO THE NATION

On September 20, 2001, President George W. Bush addressed the joint houses of Congress and the American people. The

following is an excerpt from his speech.

Historical Document

Tonight we are a country awakened to danger and called to defendfreedom. Our grief has turned to anger, and anger to resolution. . . .

Every nation, in every region, now has a decision to make.Either you are with us, or you are with the terrorists. From this dayforward, any nation that continues to harbor or support terrorismwill be regarded by the United States as a hostile regime. . . .

Great harm has been done to us. We have suffered great loss.And in our grief and anger we have found our mission and ourmoment. Freedom and fear are at war. The advance of human freedom . . . now depends on us. . . . We will not tire, . . . and we will not fail.

Analyzing Primary Sources1. What did President Bush call on other nations to do?

2. How did the president say the United States would react to terrorist acts?

The United States led a military effort todestroy terrorist camps in Afghanistan,remove the government that supportedthem, and provide humanitarian reliefto the people of the country.

948 Chapter 31

The War on IraqAs part of the U.S. war on terror, President Bush identified

three nations that he called an “axis of evil”—North Korea,Iran, and Iraq. He felt that these nations posed a threat to theUnited States because of their weapons programs or support ofterrorism. The president charged Iraq with illegally developingweapons of mass destruction—poison chemicals, deadlygerms, and even nuclear weapons. These, the president warned,could be used by terrorists to harm the United States.

Over the next year, the United Nations pressured Iraq toaccept the return of weapons inspectors to the country. Inspectorshad been in Iraq following the Persian Gulf War, but had left in1998, claiming a lack of cooperation by Iraq. Doubtful that Iraqwould cooperate with inspectors, the United States urged the UNto support military action. A few nations, such as Great Britain,supported the United States. Other nations, however, includingFrance and Germany, wanted to give the inspectors more time.

On March 20, 2003, the United States and its British alliesdecided to wait no longer. The allies launched an attack on Iraqwithout UN authorization.The Iraqi military was no match for the United States and

British forces. Contrary to pre-war fears, the Iraqi forces did not usechemical weapons. Units that did fight were quickly defeated. SaddamHussein’s government ceased to function, and the leader and many ofhis top officials went into hiding. On May 1, President Bush declared anend to major combat operations in Iraq. At this point, 138 Americansoldiers had died in the conflict.

Though major combat had ended, the allies still faced a large task.The fighting had caused a great deal of destruction in Iraq. Many partsof Iraq had no water or electricity, and there were no police to keep thepeace. Saddam Hussein had escaped capture. Fighters loyal to himbegan to launch small but deadly attacks on U.S. soldiers and on thoseworking to rebuild Iraq. In addition, Americans found no large stores ofweapons of mass destruction. President Bush reminded the Americanpeople that the war on terror would be a long struggle. He pointed outthat freeing Iraq and bringing democracy to the region had beenanother goal of the war.

In December 2003, American forces captured Saddam Hussein,raising hopes that the ongoing resistance in Iraq would cease. Thesuccesses and problems in Iraq, however, promised to be majorcampaign issues in the election of 2004.

✔ Reading Check: Sequencing Briefly describe the events that led up tothe invasion of Iraq.

The Fall of Saddam HusseinOn April 9, less than threeweeks after the invasionbegan, U.S. soldiers and Iraqicitizens topple a statue of Saddam Hussein in the Iraqicapital of Baghdad. What does this picture suggestabout some Iraqis’ feelingstoward Saddam Hussein?


Working for Homeland SecurityThe fight to stop terrorist attacks following September 11, 2001, did notinvolve just military action overseas. In the United States, thegovernment took several steps to help protect the nation, including the creation of a new Department of Homeland Security. This cabinet-level organization represented a major reorganization of the federalgovernment. It combined security-related offices and agencies that hadbeen scattered in different departments. The new department wasaimed at providing better coordination of information and agenciesthat help protect the homeland. To make the public aware of possibleterrorist threats against the country, the Department of HomelandSecurity developed the color-coded threat advisory system.The Department of Homeland Security raised the threat level from yel-low to orange several times during the months followingSeptember 11, 2001.

The nation’s law-enforcement community was also given new pow-ers following September 11. The Congress quickly passed the USAPatriot Act, which was designed to give government agencies and policeforces better tools for collecting information about possible terrorists. Italso made it easier for different police organizations to share informa-tion with each other in an effort to stop terrorist activity. Some criticsworried that the new law would undermine important civil rights.Other citizens were willing to see their freedoms limited somewhat inorder to prevent future terrorist attacks.

✔ Reading Check: Summarizing How did the nation’s leaders try to protect the homeland from terrorism?



Identify andexplain:• World Trade

Center• Pentagon• Rudolph Giuliani• Osama bin Laden• the Taliban• war on terror• weapons of mass

destruction• Department of

Homeland Security

• USA Patriot Act

1 Cause and Effect Copy thegraphic organizer below. Useit to identify the effects that resulted from the attacks ofSeptember 11, 2001.

2 Finding the Main Ideaa. Whom did investigators determine was respon-sible for the attacks of September 11, 2001?b. How did leaders of the United States decide torespond to the attacks of September 11, 2001?

Writing and Critical Thinking Evaluating Imagine that you are first learning ofthe attacks on September 11, 2001, and you wantto help in whatever way you can. Write a para-graph describing possible actions you could taketo assist those in need.

Consider the following: • the efforts of relief agencies to help victims• the need for national unity• the importance of tolerance of different

cultures and beliefs

4

3

Terrorist Attacks ofSeptember 11, 2001

Cause Effects

The color-coded “Threat Advisory System” helps keepthe public aware of possibleterrorist attacks.

Chapter Review

Identifying People and IdeasUse the following terms or people in historically significant sentences.

1. supply-side economics 6. Saddam Hussein2. Iran-Contra affair 7. Contract with America3. Mikhail Gorbachev 8. terrorism4. War on Drugs 9. George W. Bush5. Commonwealth of 10. Information Revolution

Independent States

Understanding Main Ideas Section 1 (Pages 928–931)

1. What economic policies did President Reagansupport, and what were the results of thisapproach to the economy?

Section 2 (Pages 932–935)

2. What events and trends led to the breakup ofthe Soviet Union and the end of the Cold War?

3. What laws and reforms did President Clintonsupport, and which of these programs or policies were successful?


4. Why was the 2000 presidential election so unusual?

5. What were the main economic challenges facing George W. Bush in the early years of his presidency?

950 Chapter 31

Politics from the 1980s to the Early 2000sIn the 1980s Republican presidents Ronald Reagan and George Bush called for tax cuts and increased military spending. Democrat Bill Clinton served two terms in the 1990s. During his administration the government passed a balanced budget and the U.S. economy grew significantly. Republican George W. Bush won a close election in 2000.

Global IssuesThe Cold War grew more intense in the early 1980s before ending with the breakup of the Soviet Union. In 1991 the United States and its allies were victorious in the Persian Gulf War. Free trade and use of the Internet expanded around the world.

TimesModern


6. How did changes in technology affect Americans’ lives in the 1990s?


7. How did Americans respond after the terroristattacks of September 11, 2001?

You Be the Historian—Reviewing Themes

1. Economics How did the U.S. economy affect thepresidential elections of 1992 and 1996?

2. Global Relations What effect did the policies ofperestroika and glasnost have on the Cold War?

3. Science, Technology & Society How did tech-nologies that were developed or improved dur-ing the 1980s and 1990s affect society?

Thinking Critically1. Comparing and Contrasting Compare and

contrast U.S. foreign policy under Presidents Reagan and Bush.

2. Identifying Cause and Effect What role didfemale soldiers play in the Persian Gulf War, and how might this have changed some people’sopinions about women’s roles in the military?

3. Evaluating How did the actions of U.S. presi-dents contribute to the ending of the Cold War?

The Chapter at a GlanceExamine the visual summary of the chapter below. Then write a five-questionmultiple-choice quiz that you can give to a classmate.

Interpreting Political CartoonsLook at the political cartoon below, which illustrates the effect of oil prices on the UnitedStates. Then use the cartoon to help you answerthe questions that follow.

1.What is about to happen in the cartoon?a. The United States needs to export oil to address

the problem of higher oil prices.b. Rising oil prices are about to collide with and

seriously hurt the U.S. economy.c. Rising oil prices are about to cause train fares

to increase rapidly.d. More Americans are using cars instead of trains

for transportation.2. Based on what you know about the 1990s, what do

you think the president might suggest to keep oilprices low?

Analyzing Primary SourcesRead the following quotation by Justice Sandra Day O’Connor, the first woman ever to serve on the Supreme Court, then answer the questionsthat follow.

“Judges are supposed to be objective;they’re supposed to study and look atthe law and apply the law to the particular case in an objective way, notfrom any particular point of view. Sodoes being a woman make a differencein what answer is given? I tend to thinkthat probably at the end of the day, awise old woman and a wise old man aregoing to reach the same answer.”

3. What point of view does Justice O’Connorexpress?a. Men make better judgments than

women do on legal issues.b. Women make better judgments than

men do on legal issues.c. Men and women make the same types

of objective judgments on legal issues.d. Men and women come to different

conclusions on legal issues in most cases.4. What do you think led Justice O’Connor to

make these observations? 5. What information does Justice O’Connor

cite to help support her conclusion?6. Do you agree or disagree with Justice

O’Connor’s statement? Explain your answer.

Alternative Assessment

Linking to CommunityUse newspapers or other sources at your locallibrary to identify a business in your area thatuses the Internet to buy or sell products. Contacta representative of this business and conduct aninterview. Find out when the company started itsonline business and whether it has grown, fallen,or stayed the same during the past year. Write areport based on your interview describing theeffect of the Internet on the business.

Building Your PortfolioInternet Activity: go.hrw.comkeyword: SC5 CF31

Choose an activity on America Looking to the Future to:

• Write a biography on Ronald Reagan.

• Research the presidency of Bill Clinton.

• Create a brochure on the fall of communism in the Soviet Union.


The World’s EnergyThe United States is the world’slargest consumer of energy, usingabout one fourth of the world’scommercial power. As in otherindustrial nations, much of thisenergy is used to run factories or

to power homes and businesses. Less indus-trialized nations, often called developingcountries, use much less energy than donations such as the United States.

Much of the world’s energy resourcesconsist of fossil fuels. Fossil fuels include oil,natural gas, and coal. Fossil fuels wereformed from the remains of prehistoricplants and animals. These fuels are limitedand cannot be replaced. Some people esti-mate that the world will eventually run outof these energy sources. Leaders from theUnited States and other nations are work-ing to protect Earth’s limited resources.

952 U n i t 1 1 Connecting to Geography

Energy Resources Many wealthy countries, such as the United States and Canada,are among the biggest consumers and producers of energy.

Source: Energy Information Administration, U.S. Department of Energy

*Btu—British thermal unit

Ener

gy C

onsu

med

(in

quad

rillio

n Bt

u*)

UnitedStates

94.57

25.8021.48

14.18 12.11 11.63 10.17 9.94 8.24

China Russia Japan Germany Canada India France UnitedKingdom

Brazil

Top 10 Consumers

100

010

708090

6050403020

35.31

Top World Consumers of Energy, 1998

GE

O

G R A

PH

Y

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KI L L

S Interpreting Bar Graphs1. The World in Spatial Terms Use the world map on page A4 to

check the location of the countries listed in this bar graph.On which continent is each country located?

2. Analyzing Information About how much energy did theUnited States consume compared to the second-largestenergy consumer in 1998?

Leading EnergyProducers, 1998

Source: Energy Information AdministrationU.S. Department of Energy

Russia8.7%

Iran5.4%

China4.8%

UnitedStates9.3%

SaudiArabia12.5%

Venezuela4.7%

Other33.1%

Other48.9%

Russia20.5%

UnitedStates23.5%

Canada 7.1%

China26.7%

UnitedStates22.3%

Australia6.3%

Russia5.1%

India6.4%

Other54.4%

Oil Producers

Coal Producers

Natural Gas Producers

GE

O

G R A

PH

Y

S

KI L L

S

Interpreting Pie Graphs 1. What percentage of the world’s coal was produced

by China, Russia, and the United States combined? 2. Environment and Society The United States produces

the smallest percentage of what energy source? 3. Finding the Main Idea What nation ranked in the

top three in all areas of energy production?

Natural gas, oil, and coal provide most of the world’s energy.

History Note 1

These pie graphs show the threemajor sources of energy—coal,natural gas, and oil—in the worldtoday. These fossil fuels made upabout 90 percent of the world’stotal commercial energy supply atthe beginning of the 1990s.

The World’s Energy 953

Energy at Home Most energy used in the United States is produced at home. However, the UnitedStates does buy large amounts of oil, as well as certain other fuels, from othercountries. Imported fuel is important because U.S. oil consumption is so high.

954 U n i t 1 1 Connecting to Geography

NHVTMA

RICT

NY

NJPA

DE

NC

SC

GAALMS

LA

AR

TN

KY

OHINIL

MI

MO

ME

VA

WV

TX

OK

KS

IA

NE

MN

WI

ND

SD

MT

WY

CO

NMAZ

UT

ID

WA

OR

CA

NV

FL

DCMD

CANADA

MEXICO

PACIFICOCEAN

ATLANTICOCEAN

Gulf of Mexico

N

W E

S

PACIFICOCEAN

AK

PACIFICOCEAN

HI

Minor oil-producing field

Major natural gas field

Major oil-producing field

Major coal deposit

Minor coal deposit

Uranium deposits

Nuclear power plants

Energy Sources in the United States

GE

O

G R A

PH

Y

S

KI L L

S Interpreting Thematic Maps1. Physical Systems What energy sources can

be found off the coast in the Gulf of Mexico? 2. Summarizing Where are major coal deposits

and major oil fields found?

Miners tunnel deep into theground to reach coal deposits.

History Note 2

About 80 percent of U.S. energy production in the mid-1990s camefrom fossil fuels. Nuclear power provided another 10 percent ofthe country’s energy production. Coal has been the largest singlesource of U.S. energy production since the mid-1970s. Coal is alsothe country’s largest energy-resource export.

The World’s Energy 955

GE

O

G R A

PH

Y

S

KI L L

S

Interpreting Line Graphs1. Use this graph to write a short quiz for a fellow student. Ask him

or her to identify the peak years for U.S. energy consumption andproduction and the amount of energy consumed in those years.

2. Human Systems How much more energy did the United Statesimport in 1990 than it exported in that year?

3. Contrasting During what five-year period shown on the graphdid U.S. energy consumption decrease? During what period didU.S. energy consumption increase by the greatest amount?

History Note 3

Texas and California rank first andsecond among the 50 states intotal energy consumption. How-ever, Alaska consumes moreenergy per person than any otherstate. This is due in part to its longand extremely cold winters.

Derricks like this one pump oilfrom beneath Earth’s surface.

Source: Energy Information Administration, U.S. Department of Energy

*Btu—British thermal unit

Ener

gy C

onsu

med

(in

quad

rillio

n Bt

u*)

1970 1975 1980 1985 1990 1995

100

90

80

70

60

50

40

30

20

10

0

Year

Consumption Production Imports Exports

U.S. Energy Use, 1970–1995

chapter america looks to the futuregorbachev knew that the soviet union was in deep economic...

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