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Bush Takes Over**__  In 1936 Vice President Martin Van Buren became President. After him 10 other Vice Presidents became President, however it was due to the death or resignation of the former President. In 1988, Vice President George Bush broke the tradition and became President by actually running in an election after the end of Reagan's term in office.

The Election of 1988

Bush served loyally under president Reagan for eight years. It was obvious to the Republicans that he would be the next to succeed Reagan after his term was over and was challenged by Senator Ronald Dole and Pat Robertson, a television preacher. Bush chose Senator J. Danforth "Dan" Quayle, a young, unknown, conservative from Indiana, as his running mate. More than half a dozen candidates were eager to challenge Bush and leading the pack was the Reverend Jesse Jackson and Massachusetts Governor Michael Dukakis. Jackson was the first African American to run for Presidential candidate in a major political party. Dukakis beat Jackson in the Democratic vote and Bush beat Dukakis in the presidential vote.



The New President

Bush served in WW2 and won a metal for bravery. He left his home in Connecticut to pursue an oil business in Texas. He served as a Congress member, an ambassador, and director of the CIA. Bush said that he wouldn't follow the old Reagan ways and that a new wave was rolling into America. He tried to maintain a balance between following the old Reagan ways and working closely with the Democratic-controlled Congress.

Drugs, Education, and the Environment

Bush was adament on stopping the spread and use of drugs. William Bennett was appointed "drug czar" to oversee the nation's war on drugs. Bennett resigned claiming the amount of drugs had decreased, but the drugs continued to enter the country. Florida Governor, Bob Martinez replaced him in the fight. Bush set goals for the nation's education, but the schools had to raise the money for it. William Reilly was appointed head of the Environmental Protection Agency (EPA), he set tougher standards on getting rid of air pollution. Nuclear waste was a huge problem, it was estimated to cost $200 billion to clean it up.

The Savings and Loan Crisis

Deposits in the S&L's were insured by President Roosevelt so that people would save money. When interest rates soared S&L's could only offer low interests on savings so they didn't attract many depositors. They were on the verge of going out of business. Reagan tried to make S&L's have less government control, then they could offer high interest rates. Some made huge profits while others didn't. Profits would continue to grow if the real estate markets stayed strong. Many loans were not repaid and a lot of S&L's went bankrupt. Bush attempted to have a federal agency take over the S&L's. The collapse of the S&L's caused a weakening in the nation's banking system.

Reducing the Deficit

The S&L's added to the deficit in the federal budget. The President and Congress needed to cut spending or raise money to fix it. Bush pledged not to raise taxed in his campaign. Conflicts ensued on how to cut spending. No solution could be found and the Bush began to hint that he wouldn't be opposed to new taxes. But he insisted that those who who sold their stock or investments at a profit should get tax cuts. This mainly benefited rich investors. Finally a solution was reached to increase taxes on cigarettes, alcohol, and gasoline. It would decrease the deficit by $500 billion over five years.

Election of 1990

The new budget decreased the deficit, but people saw a President unable to direct a solution to the budget solution, a congress scared to increase taxes or cut programs, and billions of dollars need to save S&L's. Voters were angry during the election of 1990. Governors from different parties were elected in 14 states by voters. Four out of every 10 eligible voters went to vote in many states.

Flags and the Supreme Court

The court had removed a Texas law that made burning the American flag illegal. Bush was angered by the removal. The burning of the flag was ruled as a form of free speech, and was under the protection of the first amendment. Bush wanted a new amendment that would let states make laws against burning the flag. Some thought the burning of he flag was an insult to the nation, others though it was better to honor the constitution.

A World in Transition

George Kennan, one of the creators of the cold war policy, claimed that the cold war was over. World tension eased with the collapse of many East European dictators. No one knew what sides would be taken. The U.S. and the Soviet Union became allies when crisis occurred in the Middle East.

The End of the Cold War?

After WW2 the Soviet Union controlled many of the governments in Eastern Europe. They put down any who opposed them and their ways. However, the communist governments began to collapse one after another. The people who were once enemies of the state came to power, they were called dissenters. It began in Poland when the Polish government allowed Solidarity candidates to run for parliament. They all won and a Solidarity leader replaced a communist leader as head of the government.

The most symbolizing event was the coming down of the Berlin Wall. The wall was created to separate East and West Berlin and to prevent anyone from entering or leaving West Berlin. In November 1989 East Berlin announced that it was opening the wall. Germany became one nation again after 45 years on October 4, 1990.

The end of communism was occurring everywhere and it seemed it would happen in the Soviet Union. The Soviet Union allowed private ownership of businesses and land. They also adopted a multiparty system. Americans were happy with the change and Congress began plans on a "peace dividend", a positive way to spend money that was once spent on the cold war.

New Directions in Latin America

Bush was less militant than Reagan and he didn't press for military aid for the contras. The Bush administration worked out a bipartisan with Congress, they would provide the contras food, clothing, and medical supplies. Violeta Chamorro won the election in Nicaragua, but Ortega's brother still had control of the military. Relations between the U.S. and Nicaragua remained uncertain.

Panama leader Manuel Noriega was a friend to the U.S. until he was indicted for drug smuggling. He corrupted Panama's elections and drugs continued to enter the country. Bush sent military forces into Panama on Dec 20, 1989. Noriega surrendered and was sent to the U.S. to stand trial and a new government was installed in Panama.

Unrest in China

Thousands of students were killed in Tiananman Square for protesting the Chinese government. The U.S. did nothing.

A Policy Toward South Africa

South Africa had the policy of apartheid, separation of the races. The President was to afraid to cause economic destruction in South Africa so they kept their judgments to a low minimum. Congress on the other hand called for limits on trade and investments. Many Americans closed any businesses they had in South Africa. South Africa elected a new President, F. W. de Klerk and he announced that he was going to change many of the problems dealing with race in his country. Nelson Mandela and Klerk met with Bush in the U.S. Mandela had been jailed for 27 years because he opposed apartheid.



War Clouds in the Middle East

The Middle East remained a threat to world peace. Kuwait was invaded by Saddam Hussein's military. Many of the world's nations were dependent on oil and if Hussein controlled Kuwait and Saudi Arabia he would control more than 80% of the oil in that region. He would be able to injure the economies in the western world. Bush sent American forces to Saudi Arabia, he convinced the United Nations to boycott and block trade with Iraq. Hussein held Americans and other Foreigners hostage in Kuwait and Iraq. Hussein rounded up Americans who were in Kuwait but let the woman and children go.

War in the Persian Gulf

War was brewing between Iraq and the U.S. 200,00 additional troops were sent to Iraq in case of attack. Hussein refused to negotiate bu he released most of the prisoners. An air attack was launched on Iraq by the U.S., Saudi Arabia, and Britain. Iraq was defeated in only six weeks.