UNITED STATES HISTORY AND THE

CONSTITUTIONSouth Carolina Standard USHC-8.5

Abbeville High School

QUESTIONS TO ANSWER How did key political and economic

issues of the last twenty-five years such as dependence on foreign oil, trade agreements and globalization change American society?

What changes in health care and education took effect?

How has the increases in economic disparity between polarized the US?

ONGOING BATTLE Economic issues arising from changes in

international trade have intensified the confrontation between conservatives and liberals in the last twenty-five years.

Globalization is the growing trend towards expansion and integration of worldwide trading networks.

GLOBAL ECONOMY The United States is impacted by

globalization as its place as the world’s foremost economic power in the post World War II world is challenged by growing economies around the world.

The United States continues to be dependent on foreign oil and therefore the American economy is impacted by fluctuations in world oil prices.

THE EURO In the 1990s, the European Common Market

developed into the European Union (EU) to provide political cooperation as well as promote democracy, trade, and the development of European economies.

A majority of members of the EU adopted a common currency.

NAFTA In the Western Hemisphere, the North

American Free Trade Agreement (NAFTA) attempted to increase trade by eliminating trade barriers.

UNFAVORABLE BALANCE OF TRADE The 1994 General Agreement on Tariffs

and Trades (GATT) lowered tariffs around the world.

As a result of this globalization, United States industries are experiencing greater competition and a growing unfavorable balance of trade.

TECHNOLOGY, CUTTING EDGE The tremendous

growth in the use of computers, the Internet, E-bay, e-mail, pagers, computer games, and cell phones by a large portion of the population brought changes to society, privacy laws, and communication networks in the United States and around the world.

OUTSOURCING Outsourcing of jobs to foreign markets where

labor costs are cheaper has resulted in unemployment for some American workers.

The internet and satellite communication have promoted the outsourcing of some service jobs to places such as India.

INTERNATIONAL COMPETITION Mechanization and globalization are

causing a loss of manufacturing jobs in the United States and a continued shift to jobs in service industries.

Added to this competition for jobs is the influx of immigrants who are willing to work at menial jobs for low wages.

The resulting controversy over immigration policies, especially of Hispanics, impacted politics at the same time that trade policy created political controversy about jobs.

UNIONS LOSING POWER With a loss of manufacturing jobs, labor unions

experienced a decline in membership and influence as their workers faced competition from overseas, new immigrants, further mechanization of the manufacturing process, and an increasingly hostile political climate.

MIGRATION OF RETIREES The movement of industries and retirees

from the “rustbelt” to the “sunbelt” means a big population shift to the “right-to-work” states that continues to impact the political influence of labor unions.

NO CHILD LEFT BEHIND Globalization has also raised concerns

about how well the American education system is preparing the nation’s children to compete in the global marketplace.

As a result “No Child Left Behind” was passed during the George W. Bush administration.

This federal law mandated that states test students to see if they meet increasingly difficult goals to demonstrate academic proficiency.

TWO INCOMES NOT ENOUGH Demographic changes in the United

States also significantly affect the economy and politics.

Economic conditions make it increasingly likely that both mothers and fathers have to work to provide for the family.

Demand for services such as day care and fast food, and the resulting impact on the obesity rate and health, are growing.

SKY ROCKING HEATH CARE COSTS Medical advances prolong productivity

and life for many Americans. The aging population contributes to the

rising cost of health care and of health insurance.

NO HEATH CARE INSURANCE As workers lose jobs in manufacturing

and as companies drop benefits to maintain competitiveness, many Americans are losing their health insurance.

Lack of basic health care increases the burden on hospital emergency rooms and the cost of health care continues to rise.

HEALTH CARE REFORM An attempt to pass health care reform

legislation during the Clinton administration met with intense Republican opposition and did not pass.

Health care legislation was passed by the Democrat controlled Congress during the Obama administration but continues to be politically controversial.

OVERLOAD SOCIAL SECURITY The aging population also contributes to

political controversies over the financial burden of Social Security.

Both issues contribute to arguments over the yearly budget deficit and the national debt.

NATIONAL DEBT In the 1980s, yearly budget deficits due in

large measure to increased defense spending contributed to an accumulating national debt.

Thus, budget deficits and recession were campaign issues in the early 1990s and contributed to partisan rancor.

BILL CLINTON Bill Clinton was elected in 1992. In a

concession to critics on the right, Clinton introduced welfare reform legislation that modified decades of policy dating back to the New Deal.

Clinton’s health care reform legislation became a partisan battleground.

President Clinton and the Republican Congress also fought over how to both balance the budget and stimulate the economy.

PRESIDENTIAL SCANDAL Partisan rancor was evident in continuous

investigations of the Clintons by a special prosecutor and reached a peak when the Republican–controlled House of Representative impeached President Clinton.

Unlike President Nixon, who tendered his resignation rather than be impeached, President Clinton maintained that he had not engaged in an impeachable offense and was tried by the Senate.

The Senate refused to convict him and Clinton remained in office.

EARNED INCOME TAX CREDIT During the Clinton administration a

deficit reduction plan that included a tax increase, spending cuts, and the establishment of the earned income tax credit was passed.

The Federal Reserve kept inflation in check and stimulated the economy by managing interest rates.

Resulting economic growth brought low unemployment; but, the gap between rich and poor continued to widen.

SHRINKING NATIONAL DEBT The national debt lessened as the world

experienced the end of the Cold War and the ‘peace dividend.’

When Clinton left office there was a budget surplus and the national debt was shrinking.

HANGING CHAD The outcome of the election of 2000 remained

undecided for several weeks beyond Election Day as Democrats and Republicans contested the counting of ballots in Florida.

Finally, the Supreme Court stopped the recount and Republican candidate George W. Bush won the election.

BUDGET DEFICITS During the Bush

administration, tax cuts for the wealthy designed to stimulate the economy further increased economic disparity and eventually budget deficits.

MORE DEBT When the United States became involved

in wars in Afghanistan and Iraq in the post 9/11 era, defense spending climbed and the United States again experienced deficit spending and escalating debt.

At the end of the Bush administration, the housing bubble burst and the Bush administration turned to deficit spending to stop the decline.

They initiated a stimulus package and a bail-out for banks to forestall a deepening recession.

GREAT RECESSION The unemployment rate topped ten

percent. Tax revenues fell and deficits grew.

This Great Recession saw the worst economic conditions since the Great Depression of the 1930s as people lost their jobs and their homes.

BARACK OBAMA The election of 2008 came amid these

worsening economic conditions. Barack Obama, an African American,

was elected president. The Obama administration passed a

second stimulus package in an effort to jump- start the economy.

STILL NO BALANCED BUDGET Conservative critics objected to deficit

spending because it raised the national debt.

However Congress did not repeal the Bush tax cuts for the wealthy to bring in more revenue to help to balance the budget.

Although economists have declared that the Great Recession has ended, lack of confidence in the economy because of political wrangling and the worsening debt crises in Europe continue to dampen consumer spending.

NO COMPROMISE SOLUTION At the time of this writing, many

Americans remain unemployed, despite low interest rates, and significant cash in the hands of businesses.

Currently deficits and debt continue to grow as does the gap between the rich and the poor.

Conservatives and liberals continue to seem unable to find a compromise solution and the political extremes control the debate.