Chapter 31: Confronting Global and National Dilemmas
On September 11 , 2001, terrorists working with the Al Qaeda organization hijacked American airplanes
and crashed them into the both towers of the World Trade Center in Manhattan. Without globalization,
this wouldn’t have been possible.
America in the Global Economy
On November 30 , 1999, protestors took to the streets of Seattle, Washington in an attempt to shut
down he meeting of the World Trade Organization (WTO) to stop globalization.
A. The Rise of the European Union and China
1.) In the 1990’s the European Union (EU) formed and quickly became a large global power as
well as creating the euro currency which soon rivaled the dollar and yen as major
2.) During the first decade of the 20 century, China was the world’s fastest-rising economic
3.) China owns nearly 25% of U.S. debt to keep its currency low against the dollar.
B. An Era of Globalization
1.) The end of the Cold War shattered barriers that had restrained international trade and
impeded capitalist development of vast areas of the world.
i.) International Organizations and Corporations
- Set the rules for capitalism’s worldwide expansion.
- As globalization accelerated, so did the integration of regional economies.
- The North American Free Trade Agreement (NAFTA) was a treaty signed by the
U.S., Mexico, and Canada in 1993.
- Corporations sought cheap labor which further drove globalization.
ii.) Financial Deregulation
- The United States and Great Britain led the way for opening of national financial
and currency markets to investment from around the world. Jessica DeLancy
- Financial deregulation led to spectacular profits for investors but produced a
more fragile, crash-prone global economy.
C. Revolutions in Technology
1.) Technological advances were changing the everyday life of Americans, much like television
did in the years following WWII.
2.) Personal computers were becoming more popular and the Internet was invented.
Politics and Partisanship in a New Era
Patrick Buchanan emphasized the “culture war” happening in America. Against the backdrop of
globalization, American politics in the 1990’s and early 2000’s careened back and forth between
contests over divisive social issues and concern over the nation’s economic future.
A. An Increasingly Plural Society
1.) By the 2040’s or 2050’s, America is expected to become a “majority-minority” nation,
meaning that there will not be one single race that will be the numeric majority.
i.) New Immigrants
- There was a 77 million person increase between 1970 and 2000 and immigrants
accounted for 21-28 million of those people.
- This was the unintended result of the Immigration and Nationality Act of 1965.
- Many immigrated from Latin America, the Caribbean, China, the Philippines,
South Korea, India, and Pakistan.
ii.) Multiculturalism and its Critics
- Americans were upset over the presence of illegal immigrants.
- America began considering itself as a “melting pot” society.
- Critics charged that multiculturalism perpetuated ethnic chauvinism and
conferred preferential treatment on minority groups.
- Language barriers were also a big concern with the growing diversity of people.
B. Clashes Over “Family Values”
1.) The high rate of divorce among whites and high rate of out-of-wedlock pregnancies among
African Americans was a concerning political issue.
i.) Abortions Jessica DeLancy
- Feminists who were prochoice clashed with religious conservatives and it is a
defining issue between Democrats and Republicans.
ii.) Gay Rights
- Gay rights groups sought legal rights for same-sex couples.
- Gay marriage has only been legalized in eleven states.
iii.) Culture Wars and the Supreme Court
- Many abortion cases were presented to the Supreme Court in 1989 in which the
Court revealed some right-wing tendencies.
- However, the Court also recognized that women had a constitutional right to
control their reproduction.
- In 2003, the Court limited the power of states to prohibit private homosexual
activity between consenting adults and in 2013, the Court ruled the Defense of
Marriage Act unconstitutional.
C. The Clinton Presidency, 1993—2001
1.) Clinton won with only 43.7% of the vote.
i.) New Democrats and Public Policy
- The Clinton administration focused on a health care reform that would cover all
citizens however it faced great opposition and ultimately failed.
- Clinton’s plan to reduce the budget deficits of the Reagan-Bush presidencies
was more successful.
ii.) The Republican Resurgence
- Republicans had the majority in the House of Representatives and well as in the
- The AFDC was abolished because many Amer