President Nixon and national security advisor Henry Kissinger executed their foreign policy agenda according to the philosophy of realpolitik. This meant that relations with other nations would focus, first and foremost, on national interests rather than politics. Nixon’s détente plan built upon these ideals and sought to create a new era of relations with the communist world based upon open diplomatic conversation rather than confrontation.
The meetings between President Nixon and Chinese premier Zhou Enlai embodied America’s new détente approach to foreign policy. The two nations coyly used a Chinese table tennis challenge as cover for the leaders’ initial conversations. Prior to the “ping-pong diplomacy” trips, relations between America and China had been frozen ever since China’s conversion to a communist state in 1949. Regardless, Nixon recognized the positive potential of being able to trade goods and research with the largest population on the planet and successfully began the process of restoring relations between the two nations.
Arab members of OPEC banned the sale of their Middle Eastern oil to America as punishment for what they saw as American meddling in the Israeli-Arab conflict. Price controls exacerbated the crisis and led to long lines at gas stations for nearly a year.
The break-in at the Democratic National Committee’s headquarters at the Watergate would spark a two-year scandal. The House Judiciary Committee approved three articles of impeachment but Nixon resigned before there was a trial in the House. Nixon’s secret oval office taping system ended up proving to be his undoing, as there was recorded evidence of Nixon ordering a cover-up.
America was still deep in an energy crisis and a growing trade deficit when Jimmy Carter was sworn in in 1977. Nuclear power represented a crucial part of the newly-founded Department of Energy’s plan to boost American energy independence. Even though the disaster at Three Mile Island was both tragic and alarming, President Carter remained committed to American nuclear power.
The Camp David Accords were the end result of extensive peace negotiations between President Jimmy Carter, Egyptian president Anwar el-Sadat, and Israeli prime minister Menachem Begin. The peace treaty between Egypt and Israel would be the first agreement ever formalized between the Israelis and an Arab government.
While Carter would successfully negotiate an end to the Iran hostage crisis in 1981, it came months after a landslide loss to Ronald Reagan and mere weeks before Carter’s presidential term ended.
Reagan’s economics policies were commonly referred to as Reaganomics, though his critics called his policies “voodoo economics” or “trickle-down economics." Reagan believed in the theory of supply-side economics, which favors lower marginal tax rates and less government regulation. He passed a large tax cut in 1981 and during his term the economy experienced robust growth and lower levels of inflation. Federal spending also increased, especially military spending, and the national debt increased dramatically.
Members of Reagan’s White House National Security Council struck a secret deal whereby America would sell weapons to Iran in order to persuade them to help free the American hostages being held in Lebanon. Then, profits from the arms deal were used to fund Nicaraguan contras who were fighting against the communist Sandinistas. Congress was unable to find President Reagan guilty of any wrongdoing, although the public along with many in the government remained suspicious.
Gorbachev’s policies had a tremendous impact on lowering the looming threat of thermonuclear war. Furthermore, his vision of the “new world order” recognized the growing tide of “independence, democracy, and social justice” taking place across the globe. Gorbachev and American Presidents Ronald Reagan and George Bush would work together to lay the groundwork for revolutionary change in the region. Ultimately, following an unsuccessful communist coup in 1991, Gorbachev and fellow reformer Boris Yeltsin would bring an end to the communist Soviet Union.
Noriega was a top target in the American “war on drugs” for his efforts in both the supply and distribution of illegal drugs in the United States. When Noriega refused to cede his authority to his democratically-elected successor Guillermo Endara, Bush sent in American troops to overthrow the general and help Endara ascend to the Panamanian presidency.
Despite widespread public outcry, President Bush was careful in his response to Tiananmen Square. He did not want to upset the growing trade relations between the U.S. and China. As a result, there was little formal response from the United States on the matter.
The savings and loan collapse of the late 1980s was partially the result of the widespread deregulation during the Reagan era. Savings and loan institutions were optimistic given the growing strength of the American economy and took larger risks. When the economy began to level out and home values started to fall, these savings and loan businesses were left with tremendous amounts of debts they could not afford to pay. The federal government issued a nearly $500 billion bailout to help contain the crisis.
Following the Iraqi dictator Saddam Hussein’s invasion and occupation of neighboring Kuwait, the United Nations gave an ultimatum: either Hussein would withdraw his forces from Kuwait or there would be a military response. Hussein did not retreat. In response, American carriers, bombers and troops entered the region in January of 1991. By the end of February, Kuwait had been liberated. Domestically, President Bush’s approval ratings soared.
Perot gained 19% of the popular vote thanks to a campaign that resonated with Americans hungry for fiscal change. Perot’s main message focused on correcting America’s economic woes by ending American deficit spending and defeating NAFTA.
The federal government had to suspend all non-essential services twice during the winter of 1995–1996 due to budget impasses between Democratic President Bill Clinton and the Republican-controlled Congress. Republicans proposed spending cuts in order to balance the budget over seven years. Clinton vetoed their bill, saying that it failed to protect Medicare, Medicaid, education, the environment, and tax fairness. Eventually a compromise would be reached, but Republicans and Speaker of the House Newt Gingrich were ultimately weakened politically by the conflict.
President Bill Clinton was dealt two articles of impeachment, one for perjury (lying under oath) and another for obstruction of justice. The appointed independent counsel, Kenneth Starr, found sufficient evidence that the president had lied under oath about a relationship he had had with Monica Lewinsky, a White House intern. Despite the impeachment charges, the Senate vote did not produce the two-thirds majority required to remove Clinton from office.
NAFTA eased regulations and tariffs on trade between Canada, Mexico, and the United States. It also included regulations to help protect the intellectual property rights of American products and creative endeavors.
With large increases in America’s gross-domestic product (GDP), Americans were experiencing one of the strongest economic booms in the nation’s history. By scaling back government spending at the same time American tax revenues were on the rise, the federal budget for 1998 ended with an $80 billion surplus.
The results of the 2000 election produced a confusing legal mess. Initial results showed that George W. Bush led Al Gore in the Electoral College 271–266, despite Al Gore's lead in the popular vote of approximately 500,000 votes.
Following the 9/11 attacks, patriotism was in full display as Americans came together both to mourn the loss of those killed in the New York, Pennsylvania, and Washington D.C. attacks and to celebrate the heroes who risked their lives to help the victims. Meanwhile, new bureaucratic measures were put in place to both enhance the federal government’s counter-terrorism efforts as well as increase the ability of the government’s intelligence community to gather information on people suspected of terrorism.
The “war on terror” initially targeted the terrorist group known as the Taliban for its role in coordinating and ordering the 9/11 attacks. In October, American forces launched attacks in Afghanistan specifically targeting the Taliban and its leaders. The following summer, George W. Bush would use the threat of terrorism to also launch an attack on Iraq. The mission targeted dictator Saddam Hussein for allegedly creating and stockpiling “weapons of mass destruction.”