Presidencies of George W. Bush and Barack Obama Study Guide

The Transition to a New Millennium

• New Year’s Eve $1999$ and the Y2K Bug:

  • On December $31$, $1999$, global celebrations occurred in public parks, restaurants, and homes to mark the arrival of the new year and the second millennium.

  • There was widespread anxiety regarding computers and potential software failures known as the Y2K bug.

  • The Concern: Computer programs coded to recognize years only from $1900$ through $1999$ were feared unable to correctly switch over to the year $2000$.

  • Expected Impact: Experts worried this failure would cause a massive global glitch, scrambling computer systems worldwide.

  • Outcome: As the clock struck midnight on January $1$, $2000$, computers continued to run, and the anticipated disaster did not materialize.

  • Significance: The concern served as a foreshadowing for future progress and new global concerns.

• Successive Presidential Administrations:

  • George W. Bush: Served as President from January $2001$ to January $2009$.

  • Barack H. Obama: Served as President from January $2009$ to January $2017$.

The Presidency of George W. Bush: Economy and Social Policy

• Economic Principles:

  • Bush took office on January $20$, $2001$. He implemented supply-side economics, a principle introduced by Ronald Reagan in the $1980$s.

  • The Theory: Reducing taxes is the most effective way to grow the economy.

  • Intended Mechanism: Businesses with more money will invest and pay workers more; consumers with more money will increase spending on goods.

  • Administrative Goals: Grow business and reduce government spending. They supported funding for military defense but aimed to cut support for social welfare and environmental protection.

• Tax Relief Measures:

  • Economic Growth and Tax Relief Reconciliation Act: Signed on June $7$, $2001$. This act lowered income tax rates significantly.

  • $2001$ Tax Cut: With the Republican Party controlling the White House and Congress, a tax cut totaling $1.35 \text{ trillion}$ was passed.

  • $2003$ Tax Cut: Bush signed a second cut that extended previous reductions and specifically targeted income from investments.

• Controversy and the Income Gap:

  • While most citizens saw some level of reduction, the largest cuts were received by those with the highest incomes.

  • Left-leaning Critics: Argued that the policy made the rich richer while middle and lower classes paid a disproportionately high amount relative to their incomes.

  • Wealth Gap Example: In $2005$, the chief executive of Walmart earned $15 \text{ million}$, which was approximately $950$ times the earnings of the company’s average sales worker.

  • Resource Depletion: Critics argued that average workers, having a smaller share of the ‘economic pie,’ had fewer resources for goods and services, including higher education required for high-paying jobs.

• Budgetary Issues:

  • Right-leaning Critics: Expressed concern that large tax cuts would prevent efforts to "balance the budget."

  • The Concept of a Balanced Budget: Avoiding spending more than is earned to cancel out debt.

  • Budget Deficit Drivers: The national debt rose due to the combination of tax cuts (reduced revenue) and increased spending on homeland security, social programs, and the wars in Afghanistan and Iraq.

• Social and Education Policies:

  • Faith-Based Initiatives ($2003$): Bush approved federal funding for religious charities involved in direct aid (food) and the establishment of charter schools (schools run by private groups but receiving federal funds).

  • School Choice: The administration encouraged school vouchers, allowing parents to move children from underperforming public schools to private schools.

  • Zelman v. Simmons-Harris ($2002$): The Supreme Court ruled that funding for vouchers does not violate constitutional law.

  • No Child Left Behind (NCLB) Act (January $2002$):

    • Aimed to close the "education gap" between American students and those in other countries.

    • Established a system of standardized testing to measure performance in reading and math.

    • Federal funding was contingent on school participation.

    • Consequences: Schools with consistently poor performance faced federal intervention, including changes to teachers and curricula.

Immigration and Domestic Crises Under Bush

• Immigration Policy:

  • Population Growth: Immigrant population grew from more than $31 \text{ million}$ in $2001$ to $38 \text{ million}$ in $2008$.

  • Enforcement: In $2002$, Bush increased funding for enforcement and moved immigration agencies under the Department of Homeland Security.

  • Stricter Requirements: Identification requirements were tightened. The House of Representatives debated a bill to make undocumented status a felony and criminalize hiring or aiding undocumented immigrants.

• Hurricane Katrina (August $2005$):

  • A massive Category $5$ storm at its peak, weakening to a Category $3$ upon reaching New Orleans.

  • Dimensions: Its diameter spanned $400 \text{ miles}$ with winds up to $175 \text{ miles per hour}$.

  • The Levee Failure: On August $29$, the levees (walls meant to prevent flooding) in New Orleans failed, submerging the city.

  • Human Cost: As many as $1,500$ deaths were reported. Approximately $1 \text{ million}$ people abandoned New Orleans.

  • Relocation: Thousands sheltered in the Superdome; $250,000$ sought refuge in Houston, Texas.

  • Institutional Failure: The Federal Emergency Management Agency (FEMA) was severely criticized for a slow and inadequate response.

• The Great Recession:

  • $2001$ Recession: Triggered by the collapse of the internet technology bubble.

  • $2008$ Crisis: Four million Americans lost their jobs; many lost homes and businesses. This was exacerbated by corruption in major financial, energy, and telecommunications companies.

  • Recovery Efforts: The administration provided emergency loans to the banking and automotive industries (‘bailouts’).

The Presidency of Barack Obama: Economic Recovery and Healthcare

• The Elections of $2008$ and $2012$:

  • $2008$ Results: Obama defeated John McCain. Obama won the popular vote with $69,498,516$ to McCain’s $59,948,323$.

  • Electoral Count ($2008$): Obama won $365$ electoral votes from $28$ states plus D.C.; McCain won $173$ from $22$ states.

  • States won by Obama: Washington, Oregon, California, Nevada, Colorado, New Mexico, Minnesota, Iowa, Wisconsin, Illinois, Indiana, Michigan, Ohio, Pennsylvania, New York, New Jersey, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, Maine, Delaware, Maryland, Virginia, North Carolina, Florida, and Hawaii.

  • States won by McCain: Alaska, Idaho, Utah, Arizona, Montana, Wyoming, North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Texas, Missouri, Arkansas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Kentucky, and West Virginia.

  • $2012$ Results: Obama defeated Mitt Romney, focusing on the economy, job creation, and the Affordable Care Act.

• Economic Stimulus and Automaker Recovery:

  • American Recovery and Reinvestment Act of $2009$ (ARRA): Pumped almost $800 \text{ billion}$ into the economy via tax cuts and investments.

  • Auto Bailout: Obama negotiated $80 \text{ billion}$ to help Chrysler and General Motors restructure. Both companies earned a profit by $2011$ and repaid over $50 \text{ billion}$ by $2013$.

• Patient Protection and Affordable Care Act (ACA / "Obamacare"):

  • Passed in $2010$ as the first major overhaul since Medicaid in $1965$.

  • Major Components:

    • Access to affordable insurance for all.

    • Prohibition of denying coverage for preexisting conditions.

    • The individual mandate (requiring everyone to have insurance).

    • Creation of private insurance exchanges using government funds.

Social Policy, Judiciary, and Partisanship

• Obama’s Social and Immigration Initiatives:

  • Every Child Succeeds Act (ECSA) ($2015$): Replaced NCLB; reduced standardized testing and expanded preschool access.

  • Education Funding: Lowered student loan interest rates ($2013$) and increased the Pell Grant Program limit.

  • DACA (Deferred Action for Childhood Arrivals) ($2012$): Executive action following the repeated failure of the Dream Act. It offered work authorization and protection from deportation for ‘Dreamers.’ By $2018$, $800,000$ people were approved.

• The Supreme Court of the United States (SCOTUS):

  • Bush Appointments: John Roberts (Chief Justice) and Samuel Alito.

  • Obama Appointments: Sonia Sotomayor and Elena Kagan.

  • District of Columbia v. Heller ($2008$): Asserted an individual's right to possess firearms for lawful reasons like self-defense.

  • Citizens United v. Federal Election Commission ($2010$): Split $5$ to $4$. This ruled that the First Amendment prohibits government limits on political spending by corporations and nonprofit organizations.

• Special Interests and Lobbying:

  • Special Interests: Groups (corporations, unions, etc.) that donate money and lobby (persuade) officials to advance specific goals.

  • National Rifle Association (NRA): One of the most successful groups, spending heavily to prevent stricter gun control laws following mass shootings like Columbine ($1999$).

• Political Polarization:

  • The Two-Party System: Dominated by the Democratic Party (Donkey) and the Republican Party (Elephant).

  • Causes of Polarization:

    1. Media: Social media feeds use algorithms that foster extreme views and ignore the broader political spectrum.

    2. Gerrymandering: Dividing election areas to give one party an advantage, creating non-competitive districts.

    3. Money in Politics: Changes in campaign finance laws allow activists to fund specific candidates who align with narrow issues.