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=CHAPTER:24, SECTION:3= =[Bush Takes Over]=

-1988, Vice President Bush defied the odds, he ran for presidency
-George H.W. Bush broke 152 year old tradition, by winning the election. -Bush and Dukakis competed for the best coverage on the short "sound-bites" -Bush received 53%, Dukakis received 46% of popular votes -Bush had 426, Dukakis 111 electoral votes

**The New President**
-A wide range of experience was brought to the White House, by Bush. -Bush won a medal for bravery in World War 2 -served as a member of Congress, as an ambassador, & the director of the Central Intelligence Agency -Bush said "he would not follow the old ideas and attitudes of the Reagan era. -"A new breeze is blowing" Bush declared. -Bush promised a "kinder, gentler nation" 

Drugs, Education, and the Environment
-1988 campaign, George H.W. Bush spoke out strongly on the need to control the spread of illegal drugs -Bush appointed William Bennett to be a special "drug czar": to oversee the nation's war on drugs -1990 Bennett resigned, claiming that drug use had begun to drop, among some populations -Reagan administration had cut back on government programs -1989, Bush called a conference of the nations governors, set national goals for education -Bush appointed strong defender of environment .... -William Reilly, head of the Environment Protection Agency (EPA) -1990, signed into law, a bill setting tougher standards to reduce air pollution. -New regulations were the 1st to be passed since Carter years.

The Savings and Loan Crisis
-Savings & Loan's institutions (S&L's), had long financed mortgages or loans for Americans buying homes -government insured deposit in S&L's to encourage people to save money. -late 1970s, savings banks were stuck with low interest, long term mortgages -Reagan administration led a campaign to **deregulate** S&Ls, to allow them more freedom from government control. -1980, falling energy prices, real estate prices tumbling in the Southwest -1990, recession in New England led to more savings bank failures -1990, collapse of many S&Ls weakened the nations banking system in general

Reducing the Deficit
-savings and loan crisis added to the growing deficit in the federal budget -1988, George Bush firmly pledged not to raise taxes "No new taxes"! he said -1990, Congress and the President struggled over a budget that lowered the deficit. -October 1st, automatic budget cuts called for in the Gramm-Rudman-Hollings act would go into effect, they failed to pass a budget -"capital gains" tax cut would stimulate the economy -Congress and President finally reached a budget agreement that would cut the deficit by nearly $500 billion over 5 years -plan increased taxes on cigarettes, alcohol, and gasoline, cut spending in many years 

The Elections of 1990
-new budget agreement reduced the deficit more than any legislation during Reagan years -1990, members of Congress found voters in an angry mood -in 14 states, voters elected governors from a different party -voters reelected most members of Congress -4 out of every 10 eligible voters went to polls -economy heading into a recession, political leaders faced an angry public

Flags and the Supreme Court
-President Bush, angered by Supreme Court decision -1989, Court struck down a Texas law that made burning American flag a crime -justices ruled that burning the flag in protest a form of speech -protected by the 1st amendment to the Constitution -supporters of amendment argued that burning a beloved national symbol not free speech, an insult to the nation -July 1990, Justice William Brennan announced his retirement, Bush nominated a not so well known New Hampshire judge David Souter to take William Brennan place.