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United States

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Martin Luther King Jr. gives his famous “I Have a Dream” speech at the Lincoln Memorial during the March on Washington, 1963
At home, the U.S. had experienced sustained economic expansion and a rapid growth of its population and middle class following World War II. After a surge in female labor participation, especially in the 1970s, by 1985, the majority of women aged 16 and over were employed. Construction of an Interstate Highway System transformed the nation’s infrastructure over the following decades. Millions moved from farms and inner cities to large suburban housing developments. In 1959, the United States formally expanded beyond the contiguous United States when the territories of Alaska and Hawaii became, respectively, the 49th and 50th states admitted into the Union. The growing Civil Rights Movement used nonviolence to confront segregation and discrimination, with Martin Luther King Jr. becoming a prominent leader and figurehead. A combination of court decisions and legislation, culminating in the Civil Rights Act of 1968, sought to end racial discrimination. Meanwhile, a counterculture movement grew, which was fueled by opposition to the Vietnam war, the Black Power movement, and the sexual revolution.
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U.S. president Ronald Reagan (left) and Soviet general secretary Mikhail Gorbachev in Geneva, 1985

The launch of a “War on Poverty” expanded entitlements and welfare spending, including the creation of Medicare and Medicaid, two programs that provide health coverage to the elderly and poor, respectively, and the means-tested Food Stamp Program and Aid to Families with Dependent Children.

The 1970s and early 1980s saw the onset of stagflation. The United States supported Israel during the Yom Kippur War; in response, the country faced an oil embargo from OPEC nations, sparking the 1973 oil crisis. In 1979, President Jimmy Carter brokered a peace treaty between Egypt and Israel, marking the first time an Arab nation recognized Israeli existence. After his election, President Ronald Reagan responded to economic stagnation with free-market oriented reforms. Following the collapse of détente, he abandoned “containment” and initiated the more aggressive “rollback” strategy towards the Soviet Union. The late 1980s brought a “thaw” in relations with the Soviet Union, and its collapse in 1991 finally ended the Cold War. This brought about unipolarity with the U.S. unchallenged as the world’s dominant superpower.

Contemporary history:

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The World Trade Center in Lower Manhattan during the September 11 terrorist attacks by the Islamic terrorist group Al-Qaeda in 2001
On September 11, 2001Al-Qaeda terrorist hijackers flew passenger planes into the World Trade Center in New York City and the Pentagon near Washington, D.C., killing nearly 3,000 people. In response, President George W. Bush launched the War on Terror, which included a war in Afghanistan and the 2003–2011 Iraq War. A 2011 military operation in Pakistan led to the death of the leader of Al-Qaeda.

Government policy designed to promote affordable housing, widespread failures in corporate and regulatory governance, and historically low interest rates set by the Federal Reserve led to the mid-2000s housing bubble, which culminated with the 2008 financial crisis, the nation’s largest economic contraction since the Great Depression. During the crisis, assets owned by Americans lost about a quarter of their value. Barack Obama, the first multiracial president, with African-American ancestry was elected in 2008 amid the crisis, and subsequently passed stimulus measures and the Dodd–Frank Act in an attempt to mitigate its negative effects and ensure there would not be a repeat of the crisis. In 2010, President Obama led efforts to pass the Affordable Care Act, the most sweeping reform to the nation’s healthcare system in nearly five decades.

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