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Section 3 ~**Election of 1988** -Bush loyally supported the president for eight years -Bush overcame opposition -Senator J. Danforth "Dan" Quayle -Bush received 53 percent of the popular vote to Massachusetts Governor Michael Dukakis's 46 percent -Took 426 electoral votes to Dukakis's 111 -Democrats continued to hold majority in both Congress houses ~**The New President** -Pilot in World War II -Won medal for bravery -Left Connecticut after the war to start successful oil business in Texas -Served as a member of Congress, ambassador, and director of CIA -Tried to maintain balance between continuing Reagan's policies and working closely with Democratic-controlled Congress -Stressed a moderate course ~**Drugs, Education, and the Environment** -Bush spoke strongly on the need to control illegal drugs spreading during the 1988 campaign -Appointed William Bennett to be "drug czar" to oversee nation's war on drugs -Warned that large federal deficit would rule out expensive new antidrug programs -Bennett resigned in 1990 -Claimed that drug use had begun to decrease, at least among some populations -Flow of drugs into the country continued -Replaced by former governor of Florida, Bob Martinez -President promised to chart new course for environment and education -In both areas, Reagan administration cut back on government programs -In 1989, Bush called conference of the nation's governors to set national goals for education -Made clear that states and local school districts would need to raise money to put standards into effect -President also appointed William Reilly to head the EPA -Signed into law bill setting tougher standards to reduce air pollution in 1990 -New regulations were first to be passed since Carter years -Nuclear wastes posed threat to environment -17 military plants were closed that manufactured nuclear weapons when Bush took office -Plants were unsafe or had dumped dangerous nuclear wastes -Energy department estimated $200 billion for the cost of cleaning and repairing plants -No solution has been found ~**The Savings and Loan Crisis** -Government insured deposits in S&Ls to encourage people to save money since the time of Franklin Roosevelt -Savings banks stuck with low-interest and long-term mortgages when interest rates soared in the 1970s -Could not extract enough new depositors -Many S&Ls on the verge of going out of business -Reagan administration led a campaign to deregulate S&Ls to allow more freedom from government control -S&Ls could offer high interest rates and choose where to invest their money -Savings banks sold off mortgages and used money to make high-risk loans -Others invested in junk bonds, risky securities that supposedly pay high interest -Some S&Ls able to make huge profits -Profits continue to grow only if real estate markets remained strong -Falling energy prices in 1980s sent real estate prices tumbling in Southwest -Number of S&Ls went bankrupt due loans not being repaid -By 1990, recession in New England led to more savings bank failures -Bush administration set up federal agency to take over failed banks -Cost of bailing out S&Ls estimated $600 billion over 10 years -Many blamed Reagan administration for collapse -Critics blamed Reagan's banking officials for ignoring evidence of brewing crisis -By the 1990s, collapse of many S&Ls weakened nation's banking system ~**Reducing the Deficit** -Savings and loan crisis added to growing deficit in federal budget -Congress and President Bush needed to either cut spending or raise more money to reduce it -During the 1988 campaign Bush pledged not to raise taxes -President and Congress could not agree on how to cut spending -Congress and the President struggled over budget that would lower deficit -If they failed by October 1, automatic budged cuts called for in Gramm-Rudman-Hollings Act would go into effect -"Capital gains tax cut would stimulate the economy -President finally reached budget agreement that would cut budget deficit by nearly $500 billion over 5 years -Plan increased taxes on alcohol, gasoline, and and cigarettes -New budged agreement reduced deficit more than any legislation during Reagan years -Many Americans were dismayed by wrangling in Washington Members of Congress found voters in angry mood during the election campaign 1990 -Voters elected governors from a different party from those who had been in office in 14 states -In most states, fewer than 4 out of 10 eligible voters went to the polls -In 1989, the Court struck down a Texas law that made burning the American flag a crime -Justices ruled that burning the flag in protest was a form of free speech -Protected by the First Amendment to the Constitution -Bush called for a new amendment that would allow the states to outlaw defacing the American flag -Supporters argued that burning a beloved national symbol was not free speech -It was an insult to the nation -In July of 1990, Justice William Brennan announced his retirement -Bush nominated New Hampshire judge, David Souter, to take his place -Took seat in Supreme Court in October of 1990 Section 4 - Soviets controlled nations of Eastern Europe since the end of World War II -Eastern bloc changed radically between 1989-1990 -Polish government outlawed Solidarity in 1981 -Walesa as President of Poland in 1990 -Berlin wall comes down on October 4, 1990 -Czechoslovakian communist government forced to resign in 1989 -Vaclav Havel became new president -Lech Walesa visits United States in1989 -Vaclav followed in 1990 -"Peace dividend" -Money that we used for arms race is now being spent on other programs -1990 budget called for small reduction spending -Bush did not continue to press for military aid to the contras -Bush administration worked out bipartisan with Congress -Nicaragua held elections in February of 1990 -Observers thought Daniel Ortega and Sandinista party would win -Violeta Chamorro won -Chamorro's hold on power slipped by 1990 -December 20, 1989 President Bush sent American military forces to Panama -Noriega's army put up resistance and dictator went into hiding -Surrendered and taken to United States to stand trial -Spring of 1989, dissident Chinese students campaigned for democratic reforms -Hundreds of thousands gathered in Beijing at Tiananmen Square -Bush disapproved return to repression -South American government continued to pursue the policy of apartheid in the 1980s -Congress rejected cautious approach -Called for economic sanctions -October of 1986 Congress passed sanctions bill over Reagan's veto -Divestiture -American universities and state governments sold stocks in companies in South Africa -September 1989: New South African president, F.W. de Klerk -Nelson Mandela -Imprisoned for 27 years -Iran-Iraq war ends in 1988 -Saddam Hussein rebuilt military -August 2, 1990, troops invaded Kuwait -One of the richest oil-producing nations in Middle East -During the 1980s, industrial nations became more dependent than ever on oil from Persian Gulf
 * ~The Elections of 1990**
 * Flags and the Supreme Court**
 * ~The End of the Cold War?**
 * ~New Directions in Latin America**
 * ~Unrest in China**
 * ~A Policy Toward South Africa**
 * ~War Clouds in the Middle East**