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Bush Takes Over -In 1988, Vice President George H.W. Bush became the first President since Martin Van Buren to be elected President while serving as Vice President. -Bush was easily the elected Republican candidate, and he ran against Democrat Michael Dukakis. -Bush won 53 percent of the vote, Dukakis won 46 percent. -Bush brought experience to the White House. He served in World War II, and eventually became a member of Congress and director of the CIA(Central Intelligence Agency). Bush wanted to maintain Reagan's policies and add some of his own spice. -Three things President Bush wanted to fix were drugs, education, and the environment. -During Bush's administration, S&L's went out of business and lots of money was lost from the failed banks. -Bush came to a budget agreement that would cut the deficit by $500 billion over 5 years with increased taxing on gas, and alcohol. Spending was cut in many areas. -The public in the early 1990's were angry with Congress, but decided to reelect most of the previous members. -The Supreme Court had many issues to deal with. Its biggest was the burning of the flag as a form of protest, and was ruled protected under the 1st Amendment.

A World in Transition -After many years of a strong rivalvry, the Cold War was over. The U.S. and Soviet Union found themselves together with the problems in the Middle East. -The Solidarity movement in Poland was a big step to the fall of communism in Eastern Europe. -In 1989, the Berlin Wall was opened, a huge step towards the end of the Cold War. In 1990, Germany was one. -The Soviet Union and border countries now let democratic independence enter their thoughts, and communism in these countries seemed to be ending. -While money used for the arms race was saved, Bush wanted to maintain a strong defense. The budget in 1990 only had a small cut in defense spending. -Our relations with Nicaragua were unknown as elections and government were always changing in Latin America. -In late 1989, the U.S. invaded Panama to restore the economy. Their dictator, Manuel Noriega, was captured and put in prison for his drug smuggling and lack of leadership. -Democratic reforms spread to China in protest, but lead to thousands of deaths. No action was taken by Bush, he wanted an open relationship with China. -Economic sanctions and divestiture were two policies used toward South Africa and its reform. -The Middle East still seemed to be a problem as Iraq invaded Kuwait in 1990. -If Saddam Hussein was not stopped, he could control most of the oil in the Middle East, threatening the economies of the rest of the world. -In response, American forces were sent to the Middle East, and many Americans were held hostage in Kuwait and Iraq. -The people living in these areas went through a lot just to survive from the Iraqi troops, something had to be done. -The deadline for Iraq's withdrawal from Kuwait was January 15, 1991. If not followed, war would soon take place. No agreements were made, and on January 16 an air attack took place on Iraq. The Iraqi forces were defeated in six weeks, and the threat of a long war was avoided, for now.