11. U.S. Domestic and Foreign Policy Issues of the Post-Cold War Era Flashcards
Purchasing Power Parity (PPP)
Purchasing Power Parity (PPP) is a way to compare the economic productivity and standards of living between countries by accounting for the relative cost of goods and services. It is used to measure a country’s Gross Domestic Product (GDP).
Exchange rates do not always reflect the real cost of goods and services between countries because of currency fluctuations. For example, a Big Mac might cost more in the U.S. than in China.
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PPP tries to fix this by using an “imaginary unit” (sometimes called an international dollar), that has the same purchasing power in any country as a U.S. dollar in the United States.
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This means that PPP eliminates the effects of exchange rate movements and price differences between countries for equivalent goods.
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By using PPP, economists and policy makers can compare different economies and standards of living in a way that reflects actual purchasing power, rather than just market exchange rates.
For example, when comparing China and the U.S. total GDP, using PPP shows that China’s output may have already exceeded that of the United States [15, conversation history]. This is due to the fact that the cost of goods is lower in China than in the US.
North American Free Trade Agreement (NAFTA)
The North American Free Trade Agreement (NAFTA) was negotiated by President George H.W. Bush, but was signed into law by President Bill Clinton.
North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations.
supply-side economics
What Is Supply-Side Economics? The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth. Additionally, it advocates tax cuts as a way to encourage job creation, business expansion, and entrepreneurial activity.
This theory suggests that economic growth can be most effectively fostered by increasing the supply of goods and services.
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It emphasizes reducing taxes and government regulation to stimulate investment and production.
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Reaganomics aimed to lower inflation by increasing the supply of goods rather than by reducing demand, as suggested by Keynesian economics
What the Patriot Act Contains
Snooping 101
The Patriot Act is thicc (over 300 pages), so here’s the TL;DR on its most notable provisions:
Surveillance Overreach
Wiretapping: Law enforcement agencies could now tap into phone lines, internet activity, and even library records (yes, Karen, your overdue copy of Twilight is now suspicious).
Sneak-and-Peek Searches: Agents could enter your home or office without telling you until after the fact, leaving you blissfully unaware of that FBI snoop sesh.
Mass Data Collection: Remember when Edward Snowden exposed the NSA? The Patriot Act allowed mass surveillance programs that basically treated everyone like a suspect.
Detaining Suspects
Non-citizens could be detained indefinitely without formal charges if deemed a threat to national security. Essentially, “You look suspicious. Jail.”
Guantanamo Bay became the symbol of this, where people (including innocent ones) were detained for years without trial under horrendous conditions.
Broadening the Definition of Terrorism
Suddenly, “domestic terrorism” became a catch-all term, potentially criminalizing political dissent. If your protest group looked a little too edgy, you could be labeled a threat.
Sharing Intelligence
Agencies like the FBI, CIA, and NSA now had the green light to share info freely, breaking down the infamous “silos” that supposedly led to the 9/11 intelligence failure.
Reaganomics
Reaganomics refers to the economic policies promoted by President Ronald Reagan during the 1980s. It was a blend of supply-side economics, tax cuts, deregulation, reduced social spending, and increased military spending. These policies aimed to reduce the size and scope of government, stimulate the economy, and restore American power.
Reaganomics success?
Budget Deficits: Contrary to supply-side theory, the tax cuts led to a massive drop in tax revenues.
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Reagan’s policies resulted in large budget deficits and a growing national debt. The deficit grew from $74 billion in fiscal 1980 to $221 billion in 1986.
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Shift in Government Spending: There was a fundamental shift in federal spending, with sharp increases in defense spending and decreases in federal social programs.
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Criticism of Supply-Side Theory: History failed to confirm the main conjecture of supply-side economics: that lower tax rates would raise tax revenues.
The Gulf War (1990-1991)
Picture this: It’s the early ’90s, and Iraq, led by Saddam Hussein, decides to invade Kuwait. Why? Mostly for the oil and to flex some regional muscle. Kuwait is small but rich in oil, and Saddam thought it would be easy pickings.
Enter the U.S. and the “Coalition of the Willing”: The United Nations and a bunch of countries, led by the U.S., were like, “Absolutely not.” They didn’t want one country controlling that much of the world’s oil. Plus, it looked like Saddam might head for Saudi Arabia next, which would have been a disaster for global oil supplies.
Operation Desert Storm: This was the military operation where the U.S. and its allies launched a massive air and ground assault, liberating Kuwait in just over a month. The war ended with a ceasefire, but Saddam stayed in power, setting the stage for future conflicts.
The Balkans (1990s)
After the fall of the Soviet Union, Yugoslavia, a country in Eastern Europe, started to fall apart. It was made up of different ethnic groups who didn’t always get along (Serbs, Croats, Bosnians, etc.). When they tried to split into different countries, things got ugly.
Ethnic Cleansing: The conflict became horrifyingly brutal, especially in Bosnia. There were massacres and concentration camps—things we thought ended with WWII. The worst was the Srebrenica massacre, where thousands of Bosnian Muslims were killed by Bosnian Serb forces.
U.S. and NATO Intervention: The world, including the U.S., watched this for a while before stepping in. NATO, with significant U.S. involvement, bombed Serbian positions to stop the genocide and eventually brokered peace deals. Later, in 1999, they intervened again in Kosovo to stop similar violence.
Somalia (1992-1993)
Somalia, in East Africa, was going through a brutal civil war and a famine. The U.S. and the United Nations decided to step in with a humanitarian mission to help get food to starving people.
“Black Hawk Down”: Things got messy fast. In 1993, a mission to capture a Somali warlord in the capital, Mogadishu, went wrong. U.S. helicopters were shot down, and the soldiers were trapped in a hostile city. The battle left 18 American soldiers dead and shocked the U.S. public, leading to a withdrawal.
Moderate Conservatism:
o What it means: Bush’s political ideology was firmly rooted in conservatism but with a more moderate, pragmatic approach compared to other Republicans of his time (like his son, George W. Bush, or Ronald Reagan). He emphasized fiscal responsibility, diplomacy, and international cooperation, alongside a strong military presence.
o Why moderate: He didn’t embrace the more radical elements of conservatism; for example, while he was for free-market policies, he also accepted some government intervention when necessary, like in his support for NAFTA and the tax hike to reduce the deficit. He believed in governing through consensus, but this didn’t always win him support within his own party.
Neoliberalism
An economic and political ideology emphasizing free markets, deregulation, privatization, and reduced government intervention in the economy, promoting individual responsibility and global capitalism.
Neoconservatism
A political ideology advocating for aggressive foreign policies, particularly military intervention, a strong national defense, and traditional values, often combined with a free-market economic stance.
How did the end of the Cold War shift the focus of U.S. foreign policy?
The end of the Cold War led to a strategic pivot away from containing a rival superpower to a unipolar moment where the U.S. acted as a global policeman. This initially focused on promoting democracy and humanitarian interventions, shifting later to broader issues.
What are the BRICS nations, and how have they impacted U.S. global influence?
The BRICS nations (Brazil, Russia, India, China, and South Africa) are a bloc of emerging economies that have challenged U.S. economic dominance and demanded a larger role in the global economic order. This has shifted the world towards a multipolar model.
Briefly describe the concept of a “Concert of Powers” and its relevance to the post-Cold War world?
A “Concert of Powers” is a system where major powers cooperate to manage international relations and maintain stability, aiming to prevent any one power from dominating. Post-Cold War, the hope for a new concert was undermined by great power competition.
What is “liberal triumphalism,” and what idea challenged it after the Cold War?
“Liberal triumphalism” was the belief that the end of the Cold War marked the victory of liberal democratic capitalism. It was challenged by the idea of a “clash of civilizations”, which predicted conflict between cultural and religious groups.
What is the “intermestic” dimension of policy, and how has it influenced U.S. policymaking?
The “intermestic” dimension refers to the entanglement of international and domestic agendas in policy making. This has led to foreign policy being shaped by domestic concerns, such as economic interests and public opinion.
Describe two ways that the Arctic has gained strategic importance since the Cold War.
The Arctic has gained strategic importance due to climate change opening new shipping routes, the accessibility of vast untapped resources like oil and natural gas, and its significance for missile defense systems.
What was the “Third Way” that defined Bill Clinton’s political ideology?
Clinton’s “Third Way” was a blend of economic liberalism, including free-market principles and deregulation, with a moderate stance on social issues. He sought to reduce government intervention and promote personal responsibility.
What are the key tenets of neoconservatism and how did it influence George W. Bush’s policies?
Neoconservatism promotes the belief in U.S. exceptionalism, aggressive foreign policy, and democracy promotion abroad. It heavily influenced Bush’s “War on Terror”, particularly the invasions of Afghanistan and Iraq.
What is the significance of the Paris Climate Accord, and what was Trump’s position on it?
The Paris Climate Accord was an international agreement to address climate change by reducing greenhouse gas emissions. Trump withdrew the U.S. from the agreement, citing its negative impact on the U.S. economy.
How did Joe Biden’s response to the Ukraine War differ from previous administrations’ foreign policy approaches?
Biden responded to the Ukraine war by providing extensive military and humanitarian aid to Ukraine while also coordinating sanctions against Russia, reaffirming U.S. alliances and leading the international coalition, highlighting a return to multilateralism.
Bipolarity, unipolarity and multipolarity
Bipolarity: A system of world order in which two major powers dominate the international system, as seen during the Cold War with the U.S. and the Soviet Union.
Unipolarity: A system of world order in which one major power dominates the international system, as experienced by the U.S. in the immediate aftermath of the Cold War.
Multipolarity: A system of world order in which several major powers compete for influence and no one power dominates.
BRICS
An acronym referring to the emerging economies of Brazil, Russia, India, China, and South Africa, who are seeking a larger role in the global economic order.
Concert of Powers:
A diplomatic system in which major powers work together to manage international relations and maintain stability.
Liberal Triumphalism:
The belief that the end of the Cold War marked the victory of liberal democratic capitalism.
Clash of Civilizations:
A theory positing that conflicts in the post-Cold War world would be driven by cultural and religious differences.
Humanitarian Intervention:
Military intervention by a state or group of states to prevent or stop widespread human rights abuses.
“Forever Wars”
Refers to the long-term military engagements in Afghanistan and Iraq following the 9/11 attacks.
Globalization:
The increasing interconnectedness of countries through trade, investment, migration, and cultural exchange.
Erosion of Sovereignty:
The idea that globalization and international institutions can undermine national autonomy and decision making.
