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Domestic Policies 1974 to the Present Liberalism Conservatism -Size of govt.Defense Spending- States Rights-Taxes-Social Programs-Religious based social programs-Regulate the economy- FDR’s “New Deal” LBJ’s “Great Society” Nixon’s + Reagan’s “New Federalism” I. Richard M. Nixon (R) (1969 – 1974) “New Federalism” A. Economy 1. Revenue Sharing- Federal monies go to States who decide on use. 2. Stagflation – ( ) prices=inflation and ( ) employment=recession (b/c oil embargo-OPEC- compounded by national debt from Vietnam War and cost of social programs with jobs going overseas) B. Environment 1.(1972) EPA Environmental Protection Agency / Clean Air Act C. Supreme Court Appointments 1. Conservatives: Warren Burger to Chief Justice (Upon retirement of liberal Chief Justice Earl Warren). 2. Justices: Harry Blackmun, Lewis Powell, and William Rehnquist (presently Chief Justice). D. Consumer Protection 1. Consumer Protection Safety Commission 1971 household products 2. Banned cigarette ads on TV and radio 1971 3. OSHA (Occupational Safety + Health Administration) 1972. inspects workplace II. Gerald Ford (R) (1974- 1977) A. Economy Vetoed Congressional spending bills III. Jimmy Carter (D) (1977 – 1981) A. Economy 1. Stagflation 2. Dept. of Energy – new energy sources / decontrolled price of natural gas. IV. Ronald Regan (R) (1981 – 1988) “New Federalism” A. Economy (high inflation and high unemployment) 1. “Reaganonmics” or the “Trickle-Down Theory” (critics = Voodoo economics) (Decrease taxes on the wealthy + businesses and they will re-invest into the economy) 2. Supply Side Economics (Federal Reserve increases interest rates to curb inflation and massive tax cuts to encourage spending) 3. Rising Deficit (decrease social program spending but deficit continued to rise = 1990---$150 billion b/c defense spending) 4. Tax Reform Act of 1986 (decreases taxation overall by changing tax brackets 15% / 28%) 5. De-regulation – oil and gas industries, Airlines, on pollution controls. B. Supreme Court (Appointed Wm. Rehnquist to Chief Justice and Sandra Day O’Connor as a Justice) V. George Bush (R) (1988 – 1992) A. Economy “Read my lips –no new taxes” by cutting Federal spending. (Deficit rises to $4 Trillion dollars) VI. William Clinton (D) (1992 – 2000) “Re-invention of Government” A. Economy (Faced with a large deficit) 1. Reduced Federal spending and Federal employment. (Reduced deficit and left the Presidency with a surplus) 2. NAFTA – free trade in North America supporting Globalization VII. George W. Bush (2000 – present) A. Economy (created over $4 billion deficit mainly b/c of the War on Terrorism) Foreign Policies 1974 to the Present I. Richard M. Nixon (1969 – 1974) “Realpolitik” (power politics based on what best for the U.S.) 1. China Visit (1972) Nixon visit Mao Zedong to open economic and cultural exchange. “Ping Pong Diplomacy”- b/c by 1979 U.S. now recognizes mainland China (PRC) as the Chinese nation rather than Taiwan (ROC) previously. Nixon’s aim was to end China’s support of North Vietnam. 2. Nixon Doctrine – The U.S. will no longer provide direct military protection in Asia (no more containment policy like previous Presidents Truman and Eisenhower) 3. Soviet Union Visit (1972) Nixon visits Soviet Premier Leonid Brezhnev to ease tension (Détente) of the Cold War. (*Latent aim was to form a wedge between the Soviet Union and China) A. SALT-Strategic Arms Limitation Talks (led to limit of ICBM’s and ABM’s). B. Grain Sales - U.S. sells tons of wheat to Soviets. (US farmers happy/ eases Soviet hunger) II. Gerald R. Ford (1974 – 1977) 1. Yom Kippur War (1973) Ford w/ Secretary of State Henry Kissinger negotiates a cease fire between Arab nations and Israel leading to the end of the OPEC oil embargo (40% of our usage). 2. Détente–cont. policy of Nixon (including grain sales and Soviet-American space capsule hook-up) III. Jimmy Carter (1977 – 1981) 1. Helsinki Accord (1975)- U.S. and other nations agree to respect basic human rights (Consequences are to withhold economic aid if violated). 2. 3. 4. 5. Camp David Accord (1977) Egypt, Anwar Sadat and Israel, Menachim Begin sign a peace treaty which returns the Sinai Peninsula to Egypt and provides the Gaza Strip to the Palestinians. Panama Canal Treaty (1977) return of the Panama Canal by 1999. End of Détente (1979) Soviet invasion of Afghanistan – U.S. boycotts summer Olympics. Iranian Revolution (1979) 50 American hostages kept 444 days when Islamic Fundamentalists led by Ayatollah Khomeini overthrow the Shah of Iran. Carter negotiates their release right up to the final minutes of his administration. IV. Ronald Reagan (1981 – 1989) 1. The New Détente – Reagan takes a tough stand toward the “evil empire’ because of the violent Soviet crackdown on the Polish Solidarity movement led by Lech Walesa. ( Détente does not return until Reagan’s 2nd term. ) 2. Central America – Reagan aids Latin American groups opposed to Communism. A. El Salvador – sent arms + military advisors to back anti-communist forces in the civil war. Govt. was forced to hold democratic elections. B. Nicaragua – (1979) Marxists guerrillas (Sandinistas) overthrow the dictator. The U.S aids the Contras but the secrecy angers Congress –(1987—no more U.S. aid). C. Grenada – (1983) rebellion by Communist (Cuban) insurgents threatens U.S. citizens on the island. A U.S. invasion protects the govt. 3. Middle East A. Lebanon (1983) Civil War between Muslims and Christians. 300 U.S Marines killed in terrorist attack---U.S. troops are removed. Encourages increase in terrorism by Islamic Fundamentalists. B. 2nd Term Iran – Contra Affair (1986) U.S. covertly aids Nicaragua Contras by trading arms with Iran (Iran-Iraq War) and funneling the funds to the Contras. CIA Col. Oliver North forced to testify before Congress. (U.S. wanted to show gratitude to Iran for release of the hostages in 1980). 1. Détente 1985 Gorbachev criticizes Reagan’s “Star Wars” defensive program and calls for the return of a relaxed relationship. Unable to pour more money into defense The Soviet economy near collapse forces Gorbachev to make reforms: A. Perestroika (economic reform) allows for privatization B. Glasnost (openness) no Soviet intervention into satellites internal matters ex. Poland Solidarity movement becomes first political party to defeat the communist party. (START I- Strategic Arms Reduction Treaty eliminates short range nuclear missiles). V. George Bush 1. Berlin Wall torn down (1989) and Germany is re-united. 2. Soviet Union break-up = CIS (Commonwealth of Independent States) 1992 3. Invasion of Panama (1992) U.S. troops arrest leader General Manuel Noriega for drug trafficking (sentenced to 40 years). 4. Persian Gulf War (1990) A. Operation Desert Storm (1991) U.S led coalition force Saddam out of oil rich Kuwait in fear that he would control much of the worlds oil reserves. Two no-fly zones established 1-southern Iraq to protect the Shiite Muslims and 1-northern Iraq to protect the Kurds. U.S.and British planes protect areas. 5. Balkan War (1991) NATO forces stop war among former Yugoslavian republics and end Serbian ethnic cleansing of Bosnian Muslims. VI. William Clinton 1. Middle East – 1993 attempts to settle Israeli – Palestinian conflict. 2. Yugoslavia- Kosovo-Serbian ethnic cleansing of ethnic Albanians in Kosovo. Serbian leader Slobodan Milosevic is arrested and put on trial at The Hague for war crimes. 3. NAFTA (1992) “Globalization” or the global economy. U.S – Canada – Mexico agree to free trade without tariffs. VII. George W. Bush 1. War on Terrorism b/c September 11, 2001 terrorist attack. A. War in Afghanistan Taliban is ousted b/c of their support of Osama Bin Laden 2. War in Iraq (2003) Saddam is ousted b/c of his alleged production of WMD’s