Key Vocabulary from Modern Era Unit
GI Bill: gave servicemen and women money to go to college and loans to buy houses and start
businesses.
Baby Boom: a rapid increase in the number of children born in the decades following WWII.
Suburbs: planned neighborhoods and towns on the outskirts of cities. Levittown was the first
planned suburb.
Interstate Highway Act: provided much aid to create an interstate highway system.
Automation: the use of machines in production. Computers have replaced many of the jobs of
humans on assembly lines running these machines, leading to greater efficiency but fewer jobs
Globalization: the increase in financial activity among people, businesses and governments
across international borders.
OPEC: an alliance of oil-producing countries (Organization of Petroleum Exporting Countries). In
the 1970s, it limited global production of oil in order to limit the supply of oil, leading to the Energy
Crisis.
Federal Debt: the amount of money owed by the US
Deficit Spending: spending more money than is brought in
Budget Deficit: the amount of money the government spends beyond the revenues it brings in
Trade Deficit: the amount by which the value of imports exceeds exports
Gross Domestic Product: the value of all goods and service produced in a country in a year
Free Trade: the removal of tariffs and other trade barriers
Terrorism: the use of violence and intimidation for political goals
Insurgents: rebel groups
Amnesty: a pardon for illegal immigrants in the US
Use these readings to review the Modern Era
The Changing Nature of the US since WWII
The past 60 years have seen prolonged periods of prosperity in the United States. Competition from
industrial nations around the world has reduced the sale of some US goods, but new technologies created
new industries and this allowed the US to maintain its position as the world’s greatest manufacturer and
exporter.
After WWII, veterans returned to the United States and many in the country wanted a return to normalcy.
The GI Bill, passed by Congress in 1944, gave servicemen and women money to go to college and loans
to buy houses and start businesses. WWII veterans and their growing families were anxious to leave the
crowded, older cities. This was the “baby boom” era. That is, there was a boom (rapid increase) in the
number of children born in the decades following the end of the war. These families, with their baby
boomer children, settled in millions of new, affordable homes that sprung up in the suburbs, planned
neighborhoods and towns on the outskirts of cities. Levittown, the first planned suburb in the US, was
created on Long Island, NY. This suburb consisted of organized streets and houses that were all very
similar. The automobile became a necessity for many families. The huge move to the suburbs also led
to the construction of shopping centers, roads, water supply systems and sewage systems. State and
federal governments built new highways to handle the additional traffic. In fact, the Highway Act of 1956
provided much aid to create an interstate highway system. At the same time, though, the US launched
many urban renewal programs to improve life in US cites through better public services, more green
space and new housing projects. These programs have revitalized many cities with new uses for old
industrial sections of cities that are no longer in use for factories.
Factory automation (the use of machines in production) had begun 50 years earlier. Now, new
technologies changed the workplace again. New equipment boosted the quantity of items a factory
worker could produce. Computers quickly replaced the work done by humans on assembly lines. By the
1970s, computers were also beginning to enhance the productivity of office workers. The number of jobs
in banking, insurance, retailing, travel and other areas kept growing. On the other hand, automation
continued to reduce the number of manufacturing jobs. Gradually, the US economy converted from
manufacturing to service industries. For the American worker, this meant more frequent occupation
changes during their work lives as changes swept society. For example, in 1950 or even 1960, very few
high school or college seniors were thinking about jobs involving computers. Think how that situation has
changed! Rapid change in the economy also meant less job security and the need for more education in
order to get a job that could support a family.
In the 1990s, advances in telecommunications created a worldwide information network called the
Internet. Sophisticated computer hardware and software, satellites, and fiber-optic cables have made it
possible for financial traders across the globe to correspond with each other 24 hours a day. The same
technology that launched communications satellites was also responsible for sending people into space.
The Soviet Union launched Sputnik, the world’s first satellite, in 1957. This triggered an intensive space
program in the US, as well as a massive effort to enhance scientific education. The upshot was that the
US sent three men to the moon in 1969. Today, most satellites are used to bounce radio signals around
the world, but they can also be used to gather scientific information from outer space. Space exploration
took a new turn in 1981, when NASA launched the first space shuttle – a cost saving reusable spacecraft.
In 1984, NASA opened the space program to include selected civilians on its missions. The first person
chosen was social studies teacher Christa McAuliffe. Shortly after the flight began in January 1986, a
small cloud of smoke escaped from the space shuttle Challenger. Then it exploded and fell toward the
Earth. All seven crewmembers were killed. In 2003, the space shuttle Columbia disintegrated 40 miles
above the Earth. Although these were two terrible incidents, many successful missions have been flown
into space. Some of those missions flew to the International Space Station which orbits far above the
earth. Nevertheless, there is constant debate over whether tax money should be used for the space
program or other domestic programs. In 2012, NASA held the final space shuttle launch. Exploration of
space, however, continues.
The increase in financial activity among people, businesses and governments across international
borders is referred to as globalization. The improved quality and lower prices of foreign goods has put
pressure on older industries in the US. Much of our energy is made from cheaply produced foreign oil.
Although the production of oil by the US has remained relatively stable, the consumption of oil by
Americans has skyrocketed. In the early 1970s, an alliance of oil-producing countries called OPEC
(Organization of Petroleum Exporting Countries) limited global production of oil in order to limit the supply
of oil. Many OPEC nations are located in the Middle East. By limiting supply while demand remained the
same drove the price of oil up. During the “Energy Crisis” of the 1970s, OPEC nations became very rich,
but consumers in the US had very high gas prices. Gas stations limited the amount of fuel motorists
could buy, airlines cut the number of flights and deliveries of goods were delayed. Despite this early
warning about the problems a dependence of foreign oil can cause, the US is still extremely dependent on
foreign oil today.
New Challenges in the Modern Era
President Reagan’s policy to boost the economy was called supply-side economics because it
increased the supply of goods and services. Reagan tried to cut the rules that government placed on
businesses and pursued a policy of deregulation. By cutting domestic programs while increasing military
spending, Reagan increased the federal debt, the amount of money owed by the government.
Government borrowing during Reagan’s presidency led to economic challenges for the next president,
George H. Bush. Companies began to downsize, or lay off workers. Some had to declare bankruptcy.
During this period of economic crisis, Bush was also facing a crisis with Iraq’s dictator, Saddam Hussein. In
order to defeat Hussein, the United States, along with other nations, formed a(n) coalition. This group
launched Operation Desert Storm, which eventually freed Kuwait from Iraqi control.
After President Bush declared victory in the Persian Gulf, his popularity soared. But the troubled
economy hurt his chances for reelection. Citizens at local levels organized a grassroots movement and put
H. Ross Perot on the ballot. He called for an end to deficit spending, or spending more money than is taken
in.
Perot was popular, although Bill Clinton won the election. One of Clinton’s first goals was to reduce
the budget deficit by slowing spending. During his second term, the economy continued to grow. By 1996
and 1997, the Gross Domestic Product (GDP) grew by about 4 percent. Unfortunately, Congress later
charged President Clinton with perjury for lying under oath.
Following Clinton’ s eight years in office, the country prepared for an election between two new
candidates. In the election of 2000, Democrats nominated Clinton’s Vice President Al Gore while the
Republicans nominated George W. Bush, Governor of Texas. The election was extremely close, and for five
weeks after the race, the outcome remained undecided. Due to the need to win more electoral votes, the
race came down to Florida. In this state, the vote was so close that a recount of the ballots was required.
Many lawsuits were filed over how to conduct the recounts. In the end, a Supreme Court ruling declared
that Bush was the winner in Florida.
During George W. Bush’s first term in office, the United States suffered the worst act of
terrorism in its history. The government blamed the attacks on Osama bin Laden and al-Queda, a group of
militant Muslim fundamentalists who want to return to traditional ways. To protect Americans from future
attacks, the Office of Homeland Security was created to coordinate counterterrorism efforts. The 9/11
attacks also raised fears of future acts of terrorism. On March 20, 2003, the United States attacked
Iraq. Rebel groups, or insurgents, battled US forces after the attack. During Bush’s second term in
office, he faced another crisis when Hurricane Katrina struck the Gulf of Mexico coast. Rising waters
from the hurricane broke through the high walls of levees that protected New Orleans.
In recent years, the United States and other nations have become interdependent for raw materials
to make goods. The technology revolution has led to globalism, a view that the world’s economies are all
part of one big system. With more imports than it exports, the United States has a massive trade deficit.
To help US economic growth, both Republicans and Democrats have supported the removal of trade
barriers, or free trade.
Not only does the United States face economic challenges, it also faces environmental challenges.
The urban sprawl into natural areas has increased pollution. Acid rain, which contains high amounts of
chemicals, is result of such pollution. Scientists believe that pollution is contributing to global warming,
which makes Earth warmer.
America’s population continues to grow in different ways. An estimated 12 million immigrants are in
the United States without permission. Some Americans want these immigrants to be sent out of the
country, or deported. Others feel that amnesty, or a pardon, is the best option.