A New Economic Order The Cold War Ends Challenges in the Middle East Globalization Since 1977

1. A New Economic Order The Cold War Ends Challenges in the Middle East Globalization Since 1977

2. A New Economic Order • Decline of manufacturing

3. A New Economic Order 2004: average wage -$16.50/hr manufacturing -$9.10/hr hotels, food, and other services

4. A New Economic Order • 1970: General Motors the largest corporation • 2005: Wal-Mart, the largest corporation

5. A New Economic Order

6. A New Economic Order: Budget Deficits

7. A New Economic Order: Growing Inequality

9. Racial and Ethnic Inequality

10. Racial and Ethnic Inequality

11. The Cold War Ends • Nuclear weapons negotiations • 1963: Limited Test Ban Treaty • 1970: Nuclear Non-Proliferation Treaty • A brief effort at détente under Nixon • Visits to China, Soviet Union • SALT treaty limits defensive missiles • The Cold War intensifies, 1980 • Soviet invasion of Afghanistan

12. The Cold War Intensifies • Reagan declares an “evil empire” and promotes defense build-up

13. The Cold War Ends • Gorbachev promotes domestic reforms, withdraws from Afghanistan • U.S. and Soviet Union agree to nuclear weapons reductions

14. “Bloodless” revolutions in Eastern Europe The Berlin Wall Falls, 1989 The Soviet Union Falls Apart, 1991 The Cold War Ends

15. Disintegration of the Soviet Union

16. Globalization • Mobility of capital, people, and products across national borders • Free trade agreements • NAFTA • World Trade Organization

17. Globalization: Problems • Interdependence: national economic crises spread rapidly • Weakening of the regulatory state • Working standards • Environmental protections • Impact on U.S. jobs • Manufacturing moves abroad • Service work exported

18. A Globalizing America

19. A Multi-ethnic America • U.S. population in 2000 • 13% Hispanic • 12% African American • 4 % Asian • 1% American Indian

20. Challenges in the Middle East • U.S. dependence on oil: consumes 25% of world’s oil, while possessing 3% of world’s oil reserves

21. World’s Oil Reserves

22. Challenges in the Middle East • The Israeli-Palestinian conflict • 1948: Israel created after decades of Israeli-Palestinian strife • 1967: The Six Day War: Israel occupies the Sinai, Golan Heights, Gaza, and the West Bank • 1973: The Yom Kippur War: U.S. airlifts arms to Israel; Arab oil producers cut off supplies

24. The Israeli-Palestinian Conflict • Israel’s right to exist • Terrorist violence against Jews • Israeli occupation of the West Bank, Golan Heights and Gaza • Palestinians’ “right of return”

25. Challenges in the Middle East • 1979-81: Iranian Revolution, hostage crisis • 1980s: Iraq-Iran War • The Persian Gulf War, 1991 • Limited aims: expel Iraq from Kuwait • Broad coalition: UN, major allies, Russia, and Arab nations • Saddam Hussein turns on Shiites in the South and Kurds in the North; interferes with UN arms inspections

27. Since 1877 • U.S. the largest, most prosperous economy in the world • U.S. the greatest military power in the world • Enormous increase in the standard of living • Expansion of rights—women, minorities, people with disabilities

28. Yet • Income polarization, racial and ethnic inequities • A debt-encumbered economy: federal deficit and dependence on foreign investment • The threat of nuclear weapons and terrorism