Following are the main points of The new conservatism and a New World Order taken from US History Book by State Department.

A SOCIETY IN TRANSITION

By the mid-1980s, nearly three-fourths of all employees worked in the service sector, for instance, as retail clerks, office workers, teachers, physicians, and government employees. Service-sector activity benefited from the availability and increased use of the computer.

The federal government had made significant investments in computer technology in the 1950s and 1960s for its military and space programs.

In 1976, two young California entrepreneurs, working out of a garage, assembled the first widely marketed computer for home use, named it the Apple, and ignited a revolution.

In 1982, Time magazine dubbed the computer its “Machine of the Year.”

By 1980 Japanese companies already manufactured a fifth of the vehicles sold in the United States. American manufacturers struggled with some success to match the cost efficiencies and engineering standards of their Japanese rivals.

The 1965 reform in immigration policy shifted the focus away from Western Europe, facilitating a dramatic increase in new arrivals from Asia and Latin America.

Then, in 1981, came the discovery of AIDS (Acquired Immune Deficiency Syndrome).

CONSERVATISM AND THE RISE OF RONALD REAGAN

One of the most politically effective groups in the early 1980s, the Moral Majority, was led by a Baptist minister, Jerry Falwell. Another, led by the Reverend Pat Robertson, built an organization, the Christian Coalition, that by the 1990s was a significant force in the Republican Party.

Another galvanizing issue for conservatives was divisive and emotional: abortion. Opposition to the 1973 Supreme Court decision, Roe v. Wade, which upheld a woman’s right to an abortion in the early months of pregnancy, brought together a wide array of organizations and individuals.

They included, but were not limited to, Catholics, political conservatives, and religious evangelicals, most of whom regarded abortion under virtually any circumstances as tantamount to murder.

Within the Republican Party, the conservative wing grew dominant once again. They had briefly seized control of the Republican Party in 1964 with its presidential candidate, Barry Goldwater, then faded from the spotlight. By 1980, however, with the apparent failure of liberalism under Carter, a “New Right” was poised to return to dominance.

The New Right favored tough measures against crime, a strong national defense, a constitutional amendment to permit prayer in public schools, and opposition to abortion.

The figure that drew all these disparate strands together was Ronald Reagan. Reagan, born in Illinois, achieved stardom as an actor in Hollywood movies and television before turning to politics. He first achieved political prominence with a nationwide televised speech in 1964 in support of Barry Goldwater. In 1966 Reagan won the governorship of California and served until 1975. He narrowly missed winning the Republican nomination for president in 1976 before succeeding in 1980 and going on to win the presidency from the incumbent, Jimmy Carter.

Wholly at ease before the microphone and the television camera, Reagan was called the “Great Communicator.”

Reagan believed that government intruded too deeply into American life. He wanted to cut programs he contended the country did not need, and to eliminate “waste, fraud, and abuse.” Reagan accelerated the program of deregulation begun by Jimmy Carter. He sought to abolish many regulations affecting the consumer, the workplace, and the environment. These, he argued, were inefficient, expensive, and detrimental to economic growth.

THE ECONOMY IN THE 1980s

President Reagan’s domestic program was rooted in his belief that the nation would prosper if the power of the private economic sector was unleashed.

Despite only a slim Republican majority in the Senate and a House of Representatives controlled by the Democrats, President Reagan succeeded during his first year in office in enacting the major components of his economic program, including a 25-percent tax cut for individuals to be phased in over three years.

The administration also sought and won significant increases in defense spending to modernize the nation’s military and counter what it felt was a continual and growing threat from the Soviet Union.

The recession hit bottom in 1982, with the prime interest rates approaching 20 percent and the economy falling sharply. That year, real gross domestic product (GDP) fell by 2 percent; the unemployment rate rose to nearly 10 percent, and almost one-third of America’s industrial plants lay idle. Throughout the Midwest, major firms like General Electric and International Harvester released workers. Stubbornly high petroleum prices contributed to the decline. Economic rivals like Germany and Japan won a greater share of world trade, and U.S. consumption of goods from other countries rose sharply.

Farmers also suffered hard times.

The increased military budget — combined with the tax cuts and the growth in government health spending — resulted in the federal government spending far more than it received in revenues each year.

Conditions began to improve in late 1983. By early 1984, the economy had rebounded. By the fall of 1984, the recovery was well along, allowing Reagan to run for re-election on the slogan, “It’s morning again in America. He defeated his Democratic opponent, former Senator and Vice President Walter Mondale, by an overwhelming margin.

Steadfast in his commitment to lower taxes, Reagan signed the most sweeping federal tax-reform measure in 75 years during his second term. This measure, which had widespread Democratic as well as Republican support, lowered income tax rates, simplified tax brackets, and closed loopholes.

The economy was jolted on October 19, 1987, “Black Monday,” when the stock market suffered the greatest one-day crash in its history, 22.6 percent.

FOREIGN AFFAIRS

The United States provided El Salvador with a program of economic aid and military training when a guerrilla insurgency threatened to topple its government. U.S. support helped stabilize the government, but the level of violence there remained undiminished. A peace agreement was finally reached in early 1992.

U.S. policy toward Nicaragua was more controversial. In 1979 revolutionaries calling themselves Sandinistas overthrew the repressive right-wing Somoza regime and established a pro-Cuba, pro-Soviet dictatorship. Regional peace efforts ended in failure, and the focus of administration efforts shifted to support for the anti-Sandinista resistance, known as the contras.

Following intense political debate over this policy, Congress ended all military aid to the contras in October 1984, then, under administration pressure, reversed itself in the fall of 1986, and approved $100 million in military aid. However, a lack of success on the battlefield, charges of human rights abuses, and the revelation that funds from secret arms sales to Iran (see below) had been diverted to the contras undercut congressional support to continue this aid.

Subsequently, the administration of President George H.W. Bush, who succeeded Reagan as president in 1989, abandoned any effort to secure military aid for the contras. The Bush administration also exerted pressure for free elections and supported an opposition political coalition, which won an astonishing upset election in February 1990, ousting the Sandinistas from power.

The Reagan administration was more fortunate in witnessing a return to democracy throughout the rest of Latin America, from Guatemala to Argentina.

In Asia, the “people power” campaign of Corazon Aquino overthrew the dictatorship of Ferdinand Marcos, and elections in South Korea ended decades of military rule.

By contrast, South Africa remained intransigent in the face of U.S. efforts to encourage an end to racial apartheid through the controversial policy of “constructive engagement,” quiet diplomacy coupled with public endorsement of reform. In 1986, frustrated at the lack of progress, the U.S. Congress overrode Reagan’s veto and imposed a set of economic sanctions on South Africa. In February 1990, South African President F.W. de Klerk announced Nelson Mandela’s release and began the slow dismantling of apartheid.

On October 25, 1983, U.S. forces landed on the Caribbean island of Grenada after an urgent appeal for help by neighboring countries.

In April 1986, U.S. Navy and Air Force planes struck targets in Tripoli and Benghazi, Libya, in retaliation for Libyan-instigated terrorist attacks on U.S. military personnel in Europe.

In late 1986 Americans learned that the administration had secretly sold arms to Iran in an attempt to resume diplomatic relations with the hostile Islamic government and win freedom for American hostages held in Lebanon by radical organizations that Iran controlled. Investigation also revealed that funds from the arms sales had been diverted to the Nicaraguan contras during a period when Congress had prohibited such military aid.

The ensuing Iran-contra hearings before a joint House-Senate committee examined issues of possible illegality as well as the broader question of defining American foreign policy interests in the Middle East and Central America. Unlike the celebrated Senate Watergate hearings 14 years earlier, they found no grounds for impeaching the president and could reach no definitive conclusion about these perennial issues.

U.S.-SOVIET RELATIONS

In relations with the Soviet Union, President Reagan’s declared policy was one of peace through strength. He was determined to stand firm against the country he would in 1983 call an “evil empire.”

Two early events increased U.S.-Soviet tensions: the suppression of the Solidarity labor movement in Poland in December 1981, and the destruction with 269 fatalities of an off-course civilian airliner, Korean Airlines Flight 007, by a Soviet jet fighter on September 1, 1983.

The United States also condemned the continuing Soviet occupation of Afghanistan and continued aid begun by the Carter administration to the mujahedeen resistance there.

During Reagan’s first term, the United States spent unprecedented sums for a massive defense buildup, including the placement of intermediate-range nuclear missiles in Europe to counter Soviet deployments of similar missiles.

On March 23, 1983, in one of the most hotly debated policy decisions of his presidency, Reagan announced the Strategic Defense Initiative (SDI) research program to explore advanced technologies, such as lasers and high-energy projectiles, to defend against intercontinental ballistic missiles

After re-election in 1984, Reagan softened his position on arms control.

In November 1985, Reagan and Soviet Leader Mikhail Gorbachev agreed in principle to seek 50-percent reductions in strategic offensive nuclear arms as well as an interim agreement on intermediate-range nuclear forces.

In December 1987, they signed the Intermediate-Range Nuclear Forces (INF) Treaty providing for the destruction of that entire category of nuclear weapons.

Reagan could take much of the credit for a greatly diminished Cold War.

THE PRESIDENCY OF GEORGE H. W. BUSH

President Reagan enjoyed unusually high popularity at the end of his second term in office, but under the terms of the U.S. Constitution he could not run again in 1988. The Republican nomination went to Vice President George Herbert Walker Bush, who was elected the 41st president of the United States.

Bush campaigned by promising voters a continuation of the prosperity Reagan had brought. In addition, he argued that he would support a strong defense for the United States more reliably than the Democratic candidate, Michael Dukakis.

In the balloting, Bush finished with a 54-to-46-percent popular vote margin.

END TO THE COLD WAR

When Bush became president, the Soviet empire was on the verge of collapse. Gorbachev’s efforts to open up the USSR’s economy appeared to be floundering.

In 1989, the Communist governments in one Eastern European country after another simply collapsed, after it became clear that Russian troops would not be sent to prop them up.

The Bush administration led the negotiations that brought the unification of East and West Germany (September 1990), agreement on large arms reductions in Europe (November 1990), and large cuts in nuclear arsenals (July 1991).

The disposal of nuclear materials and the ever-present concerns of nuclear proliferation now superseded the threat of nuclear conflict between Washington and Moscow.

THE GULF WAR

The euphoria caused by the drawing down of the Cold War was dramatically overshadowed by the August 2, 1990, invasion of the small nation of Kuwait by Iraq.

Iraq, under Saddam Hussein, and Iran, under its Islamic fundamentalist regime, had emerged as the two major military powers in the oil-rich Persian Gulf area. The two countries had fought a long, inconclusive war in the 1980s.

Less hostile to the United States than Iran, Iraq had won some support from the Reagan and Bush administrations.

The occupation of Kuwait, posing a threat to Saudi Arabia, changed the diplomatic calculation overnight.

President Bush strongly condemned the Iraqi action, called for Iraq’s unconditional withdrawal, and sent a major deployment of U.S. troops to the Middle East.

On November 29, U.N. Security Council approved the use of force if Iraq did not withdraw from Kuwait by January 15, 1991.

Bush also confronted a major constitutional issue. The U.S. Constitution gives the legislative branch the power to declare war. Yet in the second half of the 20th century, the United States had become involved in Korea and Vietnam without an official declaration of war.

On January 12, 1991, three days before the U.N. deadline, Congress granted President Bush the authority he sought in the most explicit and sweeping war-making power given a president in nearly half a century.

The United States, in coalition with Great Britain, France, Italy, Saudi Arabia, Kuwait, and other countries, succeeded in liberating Kuwait with a devastating, U.S.-led air campaign that lasted slightly more than a month.

With their superior speed, mobility, and firepower, the allied forces overwhelmed the Iraqi forces in a land campaign lasting only 100 hours.

Saddam Hussein remained in power, savagely repressing the Kurds in the north and the Shiites in the south, both of whom the United States had encouraged to rebel.

The Gulf War enabled the United States to persuade the Arab states, Israel, and a Palestinian delegation to begin direct negotiations aimed at resolving the complex and interlocked issues that could eventually lead to a lasting peace in the region. The talks began in Madrid, Spain, on October 30, 1991. In turn, they set the stage for the secret negotiations in Norway that led to what at the time seemed a historic agreement between Israel and the Palestine Liberation Organization, signed at the White House on September 13, 1993.

PANAMA AND NAFTA

The president also received broad bipartisan congressional backing for the brief U.S. invasion of Panama on December 20, 1989, that deposed dictator General Manuel Antonio Noriega.

On the economic front, the Bush administration negotiated the North America Free Trade Agreement (NAFTA) with Mexico and Canada. It would be ratified after an intense debate in the first year of the Clinton administration.

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