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=Bush Takes Over=

During the election of 1988, Vice President George H. W. Bush came out on top to be the nation's next president against opponents such as Bob Dole and Pat Robertson. Jesse Jackson and Michael Dukakis were major contenders for the Democratic nomination. Dukakis eventually nabbed the nomination but lost to Bush. Bush explained he would not follow the old ideas that Reagan imposed. He wanted the U.S. to become a "kinder, gentler nation". "My friends, we are not the sum of our possessions. They are not the measure of our lives," he proclaimed in his inaugural address. He stressed a moderate course in leading the nation.

Social Issues
During the period of Bush's candidacy, he spoke out about the need to prevent illegal drug use. When he became president, he appointed William Bennet to be his "drug czar" to fight a war on drugs. William Reilly was to head the EPA. In 1990, he set tougher standards to reduce air pollution. Nuclear waste was also a major problem that no one was sure how to deal with. Military plants that manufactured nuclear weapons were closed, but nothing could really be done about the waste.

Savings and Loan
Savings and Loan bank institutions had financed mortgages ever since Franklin Roosevelt's presidency. In the 1970's interest rates soared and the banks were stuck with low-interest, long-term mortgages. Many Savings and Loan banks were on the verge of bankruptcy because of the law preventing them from offering anything but low interest on savings. The Bush administration set up a federal agency to take control of the failed banks. Many blamed the Reagan administration for the collapse because of his campaign to deregulate Savings and Loan banks. They could then offer high interest rates and decide where they wanted to invest. Investments were poorly chosen and high risk loans were made that the banks knew people wouldn't be able to pay off. By the 1990's, the nation's banking system had weakened overall.

Reducing the Deficit
Bush had promised the American people that no new taxes would be instated. He was concerned with lowering the country national debt. He insisted on giving tax cuts to investors who sold their stocks for a profit. He believed that would stimulate the economy. Those in opposition to Bush argued that the cuts would only benefit the already rich investors. Eventually Congress and the president agreed to a budget that was supposed to cut the deficit by 500 billion dollars over the course of 5 years. Taxes were raised on cigarettes, alcohol, and gasoline. It led to problems during the 1990 elections. Governors were elected in 14 states who were of a different party than those that were there before.

Flags and the First Amendment
Bush became angered when he learned of the fact that the Supreme Court had overturned a law in Texas that had made burning the American flag a crime. The justices felt it was protected under the First Amendment as a form of free speech. Bush wasn't too happy with that. He called for a new amendment that would make burning the flag illegal. Supporters of the amendment felt that flag-burning was an insult to the nation. Other people felt it was more important to protect freedom than symbols. Justice William Brennan, who announced his retirement in July 1990, had believed that burning the flag was a form of free speech.

David Souter
President Bush nominated David Souter as a replacement for Brennan. He avoided many opinions on controversial issues and managed to take a seat later in October 1990.

=A World in Transition=

George Kennan, the man who in 1947 warned Truman of the threat of Soviet aggression, declared that the Cold War was over. Communist dictatorships in Eastern Europe were collapsing. A situation in the Middle East in 1990 even saw the U.S. and Soviets acting on the same side.

End of the Cold War
In November of 1989, the Berlin Wall was opened. It symbolized the ending of the Cold War and the reunification of Germany. Germany was truly reunited on October 4th of 1990. Because of many demands for independence in Soviet Republics, the Soviet Union was forced to take steps toward democratic reform. Multiple parties were developed, and in 1990 private ownership of land and business would be allowed. Americans were pleased with the democratic reforms in Eastern Europe. President Bush was happy with the rise of democracy in the Soviet bloc and declared he would provide economic support.

New Directions in Latin America
Bush was not as militant toward affairs in Central America as much as Reagan had been. He would provide food, clothing and medical supplies rather than military aid. In February of 1990, elections were held in Nicaragua. In an upset, the Sandinista party lost to Violeta Chamorro. However, Chamorro's power over the Sandinista influence was slipping by the end of the year. In Panama, Manuel Noriega became heavily involved in drug smuggling. The U.S. took action in December of 1989 and took Noriega into custody. The U.S. stated they would help rebuild Panama's broken economy after the toll it took from the drug smuggling.

Unrest in China
In spring 1989, Chinese students began a campaign for democratic reform. Hundreds of thousands gathered at Tiananmen Square in Beijing. In June, Army tanks and soldiers swarmed the square, arresting or killing thousands of protesters. Bush wasn't a fan of the action that had taken place. He didn't want to take drastic measures because he felt that the U.S. would be more able to influence Chinese behavior by keeping the diplomatic channels open.

South Africa
During the 1980's, the South African government had remained following the the policy of apartheid. Members of Congress in the U.S. called for economic sanctions, or limits on trade and investment to try to persuade the South African government to get rid of apartheid. Many American governments and universities sold their stocks in companies that operated in South Africa. This was called divestiture. In 1989, F. W. de Klerk was elected president and pursued easing racial tension in South Africa. He freed Nelson Mandela, a black opponent of apartheid who spent 27 years in prison. Many believed apartheid would soon be coming to an end.

War Clouds the Middle East
After the Iran-Iraq war ended in 1988, Saddam Hussein, the dictator of Iraq, rebuilt his army. In 1990, his troops invaded Kuwait, a very valuable source of oil in the Middle East. People were worried about whether or not Hussein would also attempt to take control of Saudi Arabia. If he did, he would control more than 80 percent of the region's oil. He would be very able to cause drastic decline in western economies. As a result, the United Nations, including the Soviet Union, boycotted trade with Iraq. Saddam held many Americans and other foreigners hostage, saying that if any country bombed Iraq, the hostages would die in the attacks.

Fugitives in a Desert Drama
Many Americans in Kuwait had to struggle to remain unharmed in the midst of all the confusion. Many people hid to avoid being taken into custody. People would gather and set up bomb shelters and live together in hiding.

War in the Persian Gulf
As many Americans waited to see whether or not they'd be able to leave Kuwait and Iraq, the threat of war increased. Bush convinced the United Nations Security Council to declare January 15, 1991 as the deadline for Iraq's removal from Kuwait. Bush sent an additional 200,000 troops to the Middle East as a precaution. In December of 1990, Hussein released many of the hostages. On January 16, after Hussein refused to leave Kuwait, many members of the United Nations launched an air attack on Iraq. It was going to be a long war.