After Vietnam and Watergate, Americans wanted a change in leadership. Political outsider Jimmy Carter barely defeated Gerald Ford in the 1976 election. Carter displayed bold initiative in foreign policy. His greatest triumph was the negotiation of a peace treaty between Israel and Egypt. His greatest failure was his inability to secure the release of American hostages in Iran.
Republican Ronald Reagan succeeded Carter in 1980 and quickly began to lower taxes and reduce government spending on social programs. Reagan fought communism vigorously, especially in Latin America, where he rallied support for contra rebels in Nicaragua. Reagan's overwhelming victory in his 1984 reelection bid demonstrated strong support for his policies.
Reagan began his second term intent on keeping the United States strong. A military buildup sent the federal deficit soaring. In foreign affairs, changing conditions in the Soviet Union eased strained relations with the United States.
The late 1980s and early 1990s were years of astonishing change. One communist government after another toppled, until even the Soviet Union split into independent republics. George Bush won the presidency in 1988. When Iraq invaded Kuwait in 1990, President Bush acted decisively. After Iraq refused to meet a deadline for withdrawal, United States-led forces launched a devastating series of attack on Iraqi defenses.
