7.3 Late 20th Century to the Present & Globalization
Key Takeaways
- Watergate led to Nixon's 1974 resignation, United States v. Nixon (1974) limiting executive privilege, the War Powers Act (1973), and lasting public distrust of government.
- Reaganomics (supply-side economics) emphasized tax cuts, deregulation, and a smaller federal role, contrasting with the Great Society's expansion of government.
- The Cold War ended with the fall of the Berlin Wall (1989) and the collapse of the Soviet Union (1991), leaving the United States as the sole superpower.
- After the September 11, 2001 attacks, the War on Terror included action in Afghanistan (2001) and Iraq (2003) plus the USA PATRIOT Act, sparking a national-security-versus-civil-liberties debate.
- Globalization built international supply chains through NAFTA (1994) and the WTO, while the internet and computing drove the modern information economy.
Late Twentieth Century to the Present and Globalization
Key Ideas 11.10 and 11.11 close the course with the modern era: the crisis of trust after Watergate, the conservative revival under Ronald Reagan, the end of the Cold War, the September 11 attacks and the War on Terror, and the sweeping economic changes of globalization and the technology revolution. These topics anchor the final Part I questions and often appear in Civic Literacy tasks about presidential power and civil liberties.
Nixon and Watergate
President Richard Nixon achieved major foreign-policy breakthroughs — opening relations with China (1972) and pursuing détente with the Soviet Union — but his presidency collapsed in scandal. The Watergate scandal began with a 1972 break-in at Democratic National Committee headquarters and grew into a cover-up directed from the White House. In United States v. Nixon (1974), the Supreme Court ruled that executive privilege is not absolute and ordered Nixon to release his tape recordings. Facing near-certain impeachment, Nixon resigned in August 1974 — the only president ever to do so.
Watergate's most tested consequence is a rise in public distrust of government and renewed concern over the limits of executive power. Congress reasserted itself, most notably through the War Powers Act (1973), which requires the president to consult Congress before committing troops to extended combat.
The conservative revival and Reaganomics
By 1980, many Americans — frustrated by inflation, high taxes, and the perceived overreach of government — turned to conservatism. Ronald Reagan's election launched what supporters called the 'Reagan Revolution.' His economic program, Reaganomics (supply-side economics), emphasized:
- Tax cuts, especially on higher incomes and businesses, to encourage investment.
- Deregulation of industries.
- Reduced growth in many domestic social programs.
- A large military buildup.
Supporters credited these policies with renewed growth; critics pointed to rising budget deficits and income inequality. On the exam, Reaganomics is the clearest example of a smaller-government, free-market philosophy — the deliberate opposite of the Great Society's expansion of federal programs.
The end of the Cold War
Reagan combined a military buildup with later negotiation. Soviet leader Mikhail Gorbachev's reforms — glasnost (openness) and perestroika (restructuring) — loosened control over Eastern Europe. Key milestones:
| Event | Year | Significance |
|---|---|---|
| INF Treaty | 1987 | U.S.–Soviet agreement to remove intermediate-range missiles |
| Fall of the Berlin Wall | 1989 | Collapse of the divide between East and West |
| Collapse of the Soviet Union | 1991 | End of the Cold War; U.S. as sole superpower |
The Persian Gulf War (1991) then showed the United States leading an international coalition to reverse Iraq's invasion of Kuwait, a preview of debates over America's post–Cold War global role.
September 11 and the War on Terror
The defining event of Key Idea 11.11 is the September 11, 2001 terrorist attacks by al-Qaeda, which killed nearly 3,000 people. The U.S. response launched the War on Terror:
- Military action in Afghanistan (2001) against al-Qaeda and the Taliban.
- The war in Iraq (2003).
- Creation of the Department of Homeland Security.
- The USA PATRIOT Act (2001), which expanded government surveillance and investigative powers.
The PATRIOT Act produced one of the exam's most important modern debates: the tension between national security and civil liberties. This connects to a recurring Regents pattern — from Lincoln's suspension of habeas corpus, to Japanese American incarceration in Korematsu (1944), to post-9/11 surveillance — in which presidents claim broader powers during war or emergency, prompting later debate over constitutional limits.
Globalization and the technology revolution
Globalization — the growing interconnection of national economies through trade, investment, and communication — reshaped American life. The North American Free Trade Agreement (NAFTA, 1994) and membership in the World Trade Organization lowered trade barriers. Multinational corporations built global supply chains, designing products in one country, manufacturing them in others, and selling them worldwide. The benefits (cheaper goods, new markets) came with fierce debate over outsourcing, lost manufacturing jobs, and rising U.S.–China competition.
Alongside trade came the technology revolution: personal computers, the internet, and mobile devices transformed work, communication, and the spread of information, accelerating globalization and creating the modern information economy.
The Great Recession and the modern economy
Globalization and financial complexity also produced instability. The Great Recession (2007–2009), triggered by a housing and financial crisis, was the worst economic downturn since the Great Depression and led to federal bailouts, stimulus spending, and new financial regulation. It renewed the long-running argument — running from the New Deal through the Great Society and Reaganomics — over how large a role the federal government should play in the economy.
Combined with automation and outsourcing, the recession deepened concerns about income inequality and the future of American manufacturing jobs in a globally connected economy.
Contemporary constitutional debates
The modern era keeps the framework's central constitutional questions alive:
- Executive power — how much authority a president may claim in emergencies (the Lincoln–FDR–post-9/11 pattern).
- Voting rights — in Shelby County v. Holder (2013) the Court struck down the coverage formula for federal preclearance under the Voting Rights Act, reopening debate over election oversight.
- Equality — Obergefell v. Hodges (2015) extended marriage equality nationwide under the Fourteenth Amendment.
- Security vs. liberty — ongoing debate over surveillance, privacy, and due process.
Exam strategy
For modern-era stimulus questions, connect events to the framework's big ideas: Watergate and the PATRIOT Act to executive power and civil liberties; Reaganomics to the size of government; NAFTA and supply chains to globalization and interdependence. A strong Civic Literacy Essay on any of these traces historical circumstances, the efforts of individuals or government to respond, and the impact — exactly the three-part reasoning NYSED requires.
The Watergate scandal contributed most directly to
Which economic approach is most closely associated with Reaganomics in the 1980s?
Debates over the USA PATRIOT Act after September 11, 2001, centered mainly on the tension between