Study GuideU.S. History II–The United States Since 19801.From Vice President to President: George H.W. Bush•Republican candidate:Vice President George H.W. Bush with running mate Dan Quayle•Democratic candidate:Michael Dukakis, Governor of Massachusetts•Bush usednegative campaigning, attacking Dukakis as soft on crime and questioningpatriotism•Voter turnout:Less than 50%—lowest in U.S. history•Result:Bush won decisively1.1Domestic ChallengesSavings and Loan Crisis•Deregulation in the 1980s allowed S&Ls to make risky investments•Hundreds of S&Ls failed; taxpayers paid$300–$500 billionto bail them out•Resolution Trust Corporation (1989)sold off failed banks and assetsBudget and Taxes•Bush famously promised:“No new taxes”•Faced with high national debt (~$3 trillion) and deficit, heraised taxesin 1990 after acompromise with Congress•Result: attempted to reduce deficit by ~$400 billion by 1995Recession and Social Problems•Recession begansummer 1990oUnemployment ~7%o25 million Americans out of work at some point in 1991oPoverty rose by 2 millionPreview Mode
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