Notes
The conservative resurgence
- Ronald Reagan (elected 1980) promoted smaller government, tax cuts, deregulation, and "Reaganomics" (supply-side economics). The New Right included evangelical Christians and fiscal conservatives.
- Defense spending rose sharply, and so did the national debt.
The end of the Cold War
- Reagan increased military pressure, then negotiated arms reductions with Soviet leader Mikhail Gorbachev (the INF Treaty, 1987).
- The Berlin Wall fell in 1989, and the Soviet Union collapsed in 1991, leaving the U.S. as the sole superpower.
A changing economy
- Globalization: free trade agreements like NAFTA (1994), outsourcing of manufacturing jobs, and growth of service and tech industries.
- The internet and personal computers transformed work and communication.
- Income inequality grew. The 2008 financial crisis led to the Great Recession and major government bailouts.
Society and demographics
- Immigration increased from Latin America and Asia, making the country more diverse and sparking debates over immigration policy.
- Population and political power shifted toward the Sun Belt.
- Debates over the role of government, culture and identity continued, along with growing political polarization.
Foreign policy after 2001
- The September 11, 2001 attacks led to the War on Terror: wars in Afghanistan (2001) and Iraq (2003), the creation of the Department of Homeland Security, and the USA PATRIOT Act, which raised debates about civil liberties and surveillance.
Practice
Supply-side economics aimed to spur growth through lower taxes.
Germany reunified soon after.
It lowered trade barriers in North America.
Companies moved production where labor was cheaper.
The War on Terror reshaped foreign and domestic policy.
It expanded the government's power to monitor communications.
Gorbachev also introduced reforms called glasnost and perestroika.
This changed the country's demographics.
Free response
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Free-response question
Answer (a), (b) and (c).
(a) Briefly describe ONE reason for the rise of conservatism in the 1980s.
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Many Americans were frustrated with 1970s inflation and high taxes and believed government had grown too large; evangelical Christians also organized politically around social issues.
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(b) Briefly describe ONE way the end of the Cold War changed U.S. foreign policy.
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With the Soviet Union gone, the U.S. became the only superpower and shifted from containment to new challenges like regional conflicts and, later, terrorism.
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(c) Briefly explain ONE effect of globalization on American workers.
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Many factory jobs moved overseas, hurting manufacturing towns, while new jobs grew in services and technology.
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