Chapter 34: the Age of Globalization

Chapter 34: The Age of Globalization

Resurgence of Partisanship

Bill Clinton took oath of office in January 1993.
Won the votes of under half the electorate.
Republican leadership in Congress opposed president with unanimity on many issues.

A. Launching the Clinton Presidency

Failed effort to end long time ban on gay men and women serving in military met with ferocious resistance from armed forces and conservatives.
Banking & real estate ventures involving the president and his wife became known as the Whitewater Affair.
Won approval of North American free trade agreement which eliminated most trade barriers among U.S, Canada, and Mexico.
Appointed tack force led by wife, Hillary, which proposed sweeping reformed designed to guarantee coverage to every American and hold down costs finical care.

- Congress abandoned health-care reform effort.

United Stated was among nations to send peace keeping troops to Bosnia.

B. The Republican Resurgence

1994 election, Republicans gained control of both houses of Congress.
“Contract with America” called for tax reductions, changes in federal spending, and other promises.
The gap between Democratic White House and Republican Congress on many major issues was relatively small.
In November 1995 and January 1996, federal government shut down for several days because President and Congress could not agree on budget.

C. The Election of 1996

Clinton versus Dole
Clinton could campaign as champion of peace, prosperity, and national well-being.
In spring and summer of 1996, Congress passed several important bills.

- Raised minimum wage for first time in more that a decade.

- Passed welfare reform bill.

- Ended fifty-year federal guarantee of assistance to families with dependent children and turned most of responsibility for funds to states.

- It shifted bulk of benefits away from those without jobs and toward support for low-wage workers.

Clinton received over 49 percent of popular vote and 379 electoral votes.

D. Clinton Triumphant and Embattled

Bill Clinton was first Democratic president to win two terms as president since Franklin Roosevelt.
Negotiated effectively with Republican leadership on plan for balanced budget.
Had been bedeviled by alleged scandals almost from first weeks in office.

- Whitewater

- Chares of corruption leveled against members of cabinet and staff.

- Accusations of illegalities in financing 1996 campaign.

- Civil suit for sexual harassment by former state employee in Arkansas, Paula Jones.

Paula Jones case led to charges that president had sexual relationship with White House intern, Monica Lewinsky.
Clinton finally admitted that he and Lewinsky had and “improper relationship”.

Impeachment, Acquittal, and Resurgence

House Judiciary Committee and full House approved two counts of impeachment:

- Lying to grand jury and obstructing justice.

- Trial ended with acquittal of president.

Iraqi president Saddam Hussein now balked at agreements he signed at end of the Gulf war and refused to permit international inspectors to examine military sites in country.

- Clinton ordered a series of American bombing strikes at military targets in Iraq.

Conflict between Serbian govt of Yugoslavia and Kosovo separatists erupted into a civil war in 1998.
May 1999, NATO forces began a major bombing campaign against Serbians led leader of Yugoslavia, Slobodan Milosevic, to agree to a cease-fire.
Election of 2000

George Bush versus Al Gore.
Gore won national popular cote by .05%. But on election night, both remained short of 270 electoral voted needed because no one could determine who had won Florida.
Technology of voting soon became central to dispute.

- In a number of Florida counties votes were cast by notoriously inaccurate punch-card ballots, which were counted by machines.

- Gore campaign moved quickly with demand for hand recounts of ballots in three critical counties.

Bush campaign struck back in court and through Republican Secretary of state, Katherine Harris.

- Florida Supreme Court voted to require Harris to permit the hand recounts and to accept results after the deadline.

- Third and largest county called off recount, claiming they could not finish in time.

Harris certified Bush winner in Florida by more than 500 votes.

- Gore campaign contested results in court and prevailed in Florida Supreme Court.

- US Supreme Courtoverruled Florida Supreme Court’s order for recount, insisted that any revised recount order be completed by December 12.

The Second Bush Presidency

George W. Bush assumed presidency in January 2001.

- Widespread perception that he was ill prepared for office.

Principle campaign promise had been that he would use predicted budget surplus to finance a massive tax reduction.

- Won passage of largest tax cut in American history- $1.35trillion.

President’s adviser, Karl Rove, encouraged administration to take increasingly conservative positions.

- Appealed to gun lobby by refusing to support renewal of assault weapons ban.

- Proposed constitutional amendment to ban gay marriage.

Bush administration’s proposals for incorporating “faith-based” organizations into circle of institutions were part of broad unsuccessful effort to mobilize Christians as part of republican coalition.
The Election of 2004

President Bush, who was unopposed within party, against John Kerry.
Bush won 51% of popular vote to Kerry’s 48%.
Electoral vote was closer, 286 for Bush, 251 for Kerry.
President argued that social security system was facing bankruptcy and must be reformed.

- Proposed the creation of private accounts by which individuals would be able to invest a portion of their own contributions to social security.

Opponents argued that private accounts would worsen financial condition of social security system.

The Economic Boom
From “Stagflation” to Growth

Many American corporations began making important changes in way they ran businesses.
Businesses invested heavily in new technology, to make themselves more efficient and productive.
Corporations began to consider mergers to provide themselves with more diversified bases for growth.
Many enterprises created more energy efficient plants and offices.
American businesses sought to reduce labor costs.
Took much harder line against unions.
Growth of digital technology made possible new products that became central to American economic life: Computers, Internet, phones, digital music, video, cameras, personal digital assistants, and others.
Gross National Product rose from $2.7 trillion in 1980 to over $9.8 trillion in 2000.
1997 and 1998, annual growth rates reached 5% for first time since 1960’s.
From 1994 to 2000, the economy recorded growth in every year.

Downturn

Alan Greenspan, chairman of Federal Reserve Board, warned of “irrational exuberance” with which Americans were pursuing profits in stock market.
April 2001 was a sudden and disastrous collapse of booming new “dot.com” sector of company.
At first, bursting of “tech bubble” seemed to have few effects on larger economy. But by beginning of 2001, the stock market began substantial decline which continued for almost a year.
Enron Corporation, energy-trading company, announced on December 2, 2001 that it was filing for bankruptcy.
Enron collapse became major preoccupation of media because of allegedly illegal deceptions that it revealed.

- Charge that Enron had manipulated energy priced in California to create artificial crisis.

- Crisis helped lead to successful recall of Democratic governor, Gray Davis, and replaced with Arnold

Schwarzenegger, Republican.

The Two-Tiered Economy

In 2000, median annual income of a person with less than high school education was $21,000. Number rose to $27,000 for high school graduate/ College graduate = $43,000 / Advanced degree = $55,000.
Between 1980 and 2000, average family income of wealthiest 20 percent of population grew by 20 percent; average family income of next 20 percent of population grew by more than 8 percent.

- Incomes remained flat for remaining 60 percent and declined for bottom 20 percent.

Poverty in America had declined in years after WWII.

- End of 1970’s, percentage of people living in poverty had fallen to 12 percent.

1980’s, poverty rate rose again, sometimes as high as 15 percent.

- By 2003, it dropped down to under 13 percent.

Globalization

As late as 1970, international trade still played a relatively small role in American economy.
Exports rose from just under $43 billion in 1970 to over $789 billion in 2000.
Imports rose from just over $40 billion in 1970 to over $1.2 trillion in 2000.
The North American Free Trade Agreement (NAFTA) and the General Agreement on Trade and Tariffs were boldest of long series of treaties designed to lower trade barriers stretching back to 1960’s.
American workers lost jobs as American companies began “off-shoring” work.

Science and Technology in the New Economy

“New Economy” emerged and helped to drive new scientific and technological discoveries.
The Personal Computer
By the 1990’s, most Americans were doing banking by computer.
Most retail transactions were conducted by computerized credit mechanisms.
Most businesses, schools, and other institutions were using computerized record keeping.
Among most significant innovations was development of microprocessor, first introduced in 1971 by Intel.

- Microprocessor miniaturized central processing unit of computer, making it possible for a small machine to perform calculations that in past only very large machines could do.

In 1977 Apple launched Apple II PC, the first such machine to be widely available to public.
IBM entered personal computer market with firstPC. IBM engaged small software development company (Microsoft) to design operating system for new computer.

- Known as MS-DOS (DOS for “disc operating system”)

Computer enthusiasts talked about imminent coming of “paperless office”.
The Internet

The internet is a vast geographically far-flung network of computers that allows people connected to network to communicate with others all over world.

- Began in 1963 in U.S. governments Advanced Research Projects Agency.

In 1963 J.C.R. Licklider, launched program to link together computers over large distances known as the Arpanet, both size and uses of network expanded.

- “Store-and-forward packet switching” made possible transmission of large quantities of data between computers without wiring computers together.

- Development of computer software that would allow individual computers to handle traffic over network known as Interface Message Processor.

In 1989, Tim Burners-Lee, introduced the World Wide Web, through which individual users could publish information.
Breakthroughs in Genetics

Scientists began to identify specific genes in humans and other living things that determined particular traits, and to learn how to alter or reproduce them.
In 1989, federal government appropriated $3 billion to NationalCenter for the Human Genome.

- Project setout to identify all of more than 100,000 genes by 2005. (Completed in April 2003.)

In 1997 scientists in Scotland announced they had cloned sheep using a cell from adult ewe.
Many people grew uneasy about predictions that new science might give scientists ability to alter aspects of life.

Changing Society
The Graying of America

After decades of steady growth, nation’s birth rate began to decline in 1970’s and remained low through 1980’s and 1990’s.
Aging of the population was a cause of the increasing costliness of Social Security pensions, meant rapidly increasing health costs for Medicare system and private hospitals and insurance companies.
In last 20 years of twentieth century, number of people aged 25 – 54 in native-born workforce in U.S. grew by over 26 million.
New Patterns of Immigration and Ethnicity

In 2004, over 34 million Americans consisted of immigrants.
The Immigration Reform Act of 1965 eliminated quotas based on national origin; newcomers from regions other than Latin America were admitted on first-come, first-served basis.
People from Latin America constituted more than a third of total number of legal immigrants to U.S. every year after 1965.
By 2000, there were more than 10 million Asian Americans in U.S.
The Black Middle Class

African Americans attending college rose by 350% in decade following passage of Civil Rights Act.
African Americans made up 12% of college population in 1990’s.
Nearly half of all employed blacks in U.S. had skilled white-collar jobs.
Poor and Working-Class African Americans

“Underclass” made up as much as a third of nation’s black population.
Fewer than half of young inner-city blacks finished high school; more than 60% were unemployed.
1991 in Los Angeles a bystander videotaped several Los Angeles police beating apparently helpless black man, Rodney King.
Black residents of South Central Los Angeles precipitated largest racial disturbance of 20th century. More than 50 people died.

E. Modern Plagues: Drugs and AIDS

Enormous demand for drugs and “crack” cocaine in late 80’s and early 90’s spawned multibillion-dollar industry. Without major funding for “war on drugs” programs, efforts appeared to be having little effect.
AIDS (Acquired Immune Deficiency Syndrome)

- Gradually destroys body’s immune system and makes victims highly vulnerable to a number of diseases to which they would otherwise have natural resistance.

- In 2002 U.S. government agencies estimated that about 870,000 Americans were infected with HIV virus and that 502,000 had already died from disease.

- In mid 1990’s AIDS researchers began discovering effective treatments for disease. The drugs were not a cure for AIDS; people who stopped taking them experience a rapid return of disease.

A Contested Culture
Battles over Feminism and Abortion

For those who favored allowing women to choose to terminate unwanted pregnancies, Supreme Court’s decision in Roe vs. Wade seemed to settle question.
Catholic Church lent institutional authority to battle against legalized abortion.
Changing composition of Supreme Court in 1980’s and early 1990’s renewed right-to-life movement’s hopes for reversal of Roe vs. Wade, in Webster vs. Reproductive Health Services. Courts stopped short of overturning 1973 decision.
“Pro-choice” movement was defending not so much abortion itself as every woman’s right to choose whether and when to bear a child.
The Changing Left and the Growth of Environmentalism

Environmental movement continued to expand in last decades of 20th century.
By end of the 1970’s many scientists were warning that release of certain industrial pollutants into atmosphere was depleting ozone layer of earth’s atmosphere.

- Scientists warned of related danger of global warning, a rise in earth’s temperature as a result of burning fossil fuels.

In 1997, representatives of major industrial nations met in Kyoto, Japan and agreed to broad treaty banning certain emissions into atmosphere. But in March 2001, second Bush administration rejected treaty.
The Fragmentation of Mass Culture

Idea about advertising became powerful in 1970’s known as “targeting”.

- Instead of finding promotional techniques that appeal to everyone, advertisers sought to identify product with particular “segment” of market and create advertisements designed to appeal to it.

As late as 1970’s American audiences overwhelmingly watched programs on 3 major networks: NBC, CBS, and ABC. In 1980’s, that began to change.

- VCR’s, DVD players (which were estimated to be in 2/3 of all homes by 2004.)

- Increasing availability of cable and satellite television

- Many people turned from television and began to explore internet

The Perils of Globalization

Television viewers around world followed dawn of new century from Australia, through Asia, Africa, Europe, and into Americas.
Opposing the “New World Order”
To many Americans on both left and right, nation’s increasingly interventionist foreign policy was deeply troubling.

- Critics on left charged that U.S. was using military action to advance economic interests in 1991 Gulf War and 2003 Iraq War.

- Critics on right claimed that nation was allowing itself to be swayed by interests of other nations and was ceding its sovereignty to international organizations.

- Labor unions insisted that rapid expansion of free trade agreements led to export of jobs from advanced nations to less developed ones.

In November 1999, when leaders of seven leading industrial nations gathered for annual meeting in Seattle tens of thousands of protesters clashed with police, smashed store windows, and all but paralyzed city.
In July, 2001, at a meeting of same leaders in Genoa, Italy, an estimated 50,000 demonstrators clashed violently with police.
Participants in meeting responded to demonstrations by pledging $1.2 billion to fight AIDS epidemic in developing countries, and by deciding to hold future meetings in remote locations.
Defending Orthodoxy

The Iranian Revolution of 1979 was one of the first large and visible manifestations of a phenomenon that would eventually reach across much of the Islamic world and threaten stability of globe.
Among some militant fundamentalists, battle to preserve orthodoxy came to be defined as battle against West and U.S. in particular.
Continuing struggle between Palestinians and Israelis (defined in eyes of many Muslims by American support for Israel) add further to their contempt.
Militants used isolated incidents of violence and mayhem, designed to disrupt societies and governments and to create fear among peoples known as terrorism.
The Rise of Terrorism

Term “terrorism” was used first during French Revolution to describe actions of radical Jacobins against French government.
United States experienced terrorism for many years, these included bombing of marine barracks in Beirut in 1983, explosion that brought down American Airliner over Lockerbie, Scotland in 1988, bombing of American Embassies in 1988, assault on U.S. naval vessel Cole in 2000, and September 11, 2001.
The War on Terrorism

Attacks on WorldTradeCenter and Pentagon, government intelligence indicated, had been planned and orchestrated by Middle Eastern agents of Al Qaida.

- Leader, Osama Bin Laden, quickly became one of most notorious figures in world.

U.S. began sustained campaign of bombing against regime and sent in small numbers of ground troops to help a resistance organization overthrow the Afghan government.
American forces rounded up several hundred people suspected of connections to Taliban and Al Qaeda in aftermath of fighting and moved these prisoners to facility at American base in Guantanamo, Cuba.
Were among the first suspected terrorists to be handled with new and more draconian standards established by federal government in dealing with terrorism after September 11, 2001.
The Iraq War

For over a year Bush administration slowly built public case for invading Iraq. Case rested on 2 claims.

- Iraq was supporting terrorist groups that were hostile to U.S.