Chapter 22 Section 3 Domestic Challenges Chapter 22 Section and 4 The Obama Presidency

1. Chapter 22 Section 3Domestic ChallengesChapter 22 Section and 4The Obama Presidency 6th Hour Notes

2. National Security Measures • A Controversial Decision • Bush decided to hold prisoners of the war at Guantanamo Bay, Cuba. Prisoners were held as enemy combatants, which meant they did not have rights. • Supreme Court Rulings • InRasul v. Bush, the Supreme Court found that detainees had the right to have their cases heard in court. • InHamdan v. Rumsfeld, the Supreme Court ruled that the military tribunals violated rules regarding the treatment of prisoners of war. • Wiretaps Controversy • The National Security Agency listened in on telephone calls from the United States to people suspected of having connections with terrorist groups. • Civil rights groups argued that the wiretaps violated Fourth Amendment protections against unreasonable searches.

3. Issues of Bush’s Second Term • A Second Term • Bush won a second term in 2004, despite the fact that there were no WMDs in Iraq and low public approval ratings. • New Supreme Court Justices • Bush took advantage of two openings on the Supreme Court to place two conservatives on the bench, John Roberts as chief justice and Samuel Alito, Jr. The Supreme Court issued subsequent decisions reflecting a conservative tilt. • Fallout from Katrina • The failure of government at all levels during the Hurricane Katrina disaster hurt Bush’s public approval, which was already low. Photographs of Bush flying over the devastated area days later gave the impression that the president was detached from the suffering. Under mounting criticism, Bush fired the head of FEMA and flew to New Orleans to pledge federal support for rebuilding efforts. • Midterm Election Shift • In the 2006 midterm elections, Bush’s unpopularity hurt Republican candidates and the Democrats retook control of the House of Representatives. They made Nancy Pelosi the first woman Speaker of the House. However, Democrats failed to pressure Bush to begin withdrawing from Iraq.

4. Background on Issues • Public disapproval • The recession of 2007 had hit poor and middle-class Americans hard. Real estate had lost value; unemployment was rising. The war in Afghanistan had been going on for almost seven years, and the war in Iraq for more than five years. Public support had diminished, and Obama campaigned on ending the conflicts. • Bank Bailout • Americans expressed disapproval for a $700 billion bailout—meant to prevent the collapse of financial institutions—when the government offered little or no help to average Americans. • Grassroots Campaign • Obama used the Internet and grassroots campaigning to gain the support of young voters, a demographic that traditionally did not vote in numbers as large as middle-aged or elderly Americans. This was key. Obama achieved the biggest margin of victory for a Democratic candidate since 1964. He was the first African American to be elected president.

5. Financial Meltdown • Falling Home Values • In 2008–2009, home values fell as much as 40 percent in many areas of the United States. In many cases, homes were worth less than the mortgages homeowners had originally taken out. • Foreclosure • By 2009 about 10 percent of home mortgages were either behind in payment or had gone to foreclosure. More than six million families were in danger of losing their homes. • Financial Stress • The decline in home values meant that people could no longer borrow money against the equity of their home. Without access to loans, people defaulted on other debts such as education loans and credit card debt.

6. Economic Decline • Response • At the end of the Bush administration, the government provided a bailout to banks in danger of failing. Despite the federal financial bailout, home losses and bank closures continued. Companies posted record losses and laid off workers. • Stimulus • Soon after Obama took office, he signed the American Recovery and Reinvestment Act of 2009, to stimulate the economy through tax cuts and investment in education, health, and other programs. The administration later strengthened consumer protections and federal oversight of financial institutions. • Mixed Recovery • By the end of 2009, the economy had expanded slightly and some companies had repaid bailout funds. However, unemployment remained high, the federal deficit continued rising, and people questioned the government’s role in the economy.

7. Reform Efforts • Health Care Reform • The president sought to lower costs, streamline delivery, and provide all Americans with affordable health care. Higher taxes on the wealthy and waste reduction would help pay for the program. The final law extended coverage to millions of Americans, prevented insurers from denying insurance to people with pre-existing conditions, and gave tax credits to small businesses to provide health care to their employees. Republicans opposed the health care bill. • Energy/Environmental Reform • Obama’s energy policy included a “cap and trade” bill for limiting emissions, while allowing companies to buy and sell pollution permits. Conservatives strongly opposed the idea. • BP Oil Spill • In April 2010, an oil rig owned by British Petroleum (BP) exploded in the Gulf of Mexico, killing 11 people and injuring 17 others, spewing millions of gallons of oil deep beneath the surface of the water. The leak was eventually capped several months later, but Obama drew criticism for not responding forcefully or quickly enough.

8. Changes in Washington • Frustration with Economy • Obama, who had swept into office on a wave of popularity, faced lower and lower approval ratings as the bad news on the economy continued. Americans were disappointed at the results of his legislative victories and worried about government spending. • The Tea Party • Opponents of “big government” created a new political movement to oppose Obama’s policies. They called themselves the Tea Party and ran several candidates for national office. • Republicans Bounce Back • Republicans rode the wave of discontent about the continued economic slump and Obama’s policies to retake control of the House of Representatives. Democrats maintained a reduced majority in the Senate.