Changes

'''''Next week: the final exam.  The homework is to prepare for it'''''.

'''''Next week: the final exam.  The homework is to prepare for it'''''.

This is the final lecture of the course, and takes us through the [[9/11]] terrorist attack on the World Trade Center (typically the stopping point for American history), and then includes the subsequent history from the first decade of this 21st century.

This is the final lecture of the course, and takes us through the [[9/11]] terrorist attack on the World Trade Center (typically the stopping point for American history), and then includes subsequent history from the first decade of this 21st century.

What is the most important event in America in the 21st century?  The terrorist attack of 9/11?  Two new Justices appointed to the Supreme Court?  The election of Presidents George W. Bush and then Barack Obama?  '''''Or this class?'''''  Do not think that history is something that involves ''only'' other people.  You shape history too.

What is the most important event in America in the 21st century?  The terrorist attack of 9/11?  Two new Justices appointed to the Supreme Court?  The election of Presidents George W. Bush and then Barack Obama?  '''''Or this class?'''''  Do not think that history is something that involves ''only'' other people.  You shape history too.

There were obvious flaws in MAD.  What about an accidental firing of a nuclear missile by the other side, which we could do nothing to stop?  What about an attack by smaller countries?  What about a terrorist missile attack?  What about an attack by a crazed dictator who might rise to power and not mind mutual assured destruction?  MAD left us defenseless against such attacks.

There were obvious flaws in MAD.  What about an accidental firing of a nuclear missile by the other side, which we could do nothing to stop?  What about an attack by smaller countries?  What about a terrorist missile attack?  What about an attack by a crazed dictator who might rise to power and not mind mutual assured destruction?  MAD left us defenseless against such attacks.

Reagan wanted a defense against missile attacks.  He thought this would bring us to a new level of freedom and security.  Critics immediately attacked his theory as impossible, wasteful, and destabilizing.  Enormous debate and controversy followed, and many were vicious in their criticism of Reagan over this.  Your teacher recalls attending a presentation by a prestigious scientist from IBM who described Reagan's plan as impossible and destabilizing.  But questions after his talk were cut off prematurely so he could avoid addressing the logical flaws in his presentation.

Reagan wanted a defense against missile attacks.  He thought this would bring us to a new level of freedom and security.  Critics immediately attacked his theory as impossible, wasteful, and destabilizing.  Enormous debate and controversy followed, and many were vicious in their criticism of Reagan over this.  Your teacher recalls attending a presentation by a prestigious scientist from IBM who described Reagan's plan as impossible and destabilizing.  But questions after his talk were cut off prematurely so he could avoid addressing obvious logical flaws in his own presentation, such as why was the Soviet Union so opposed to our developing a missile defense program if it were impossible to build??

Also in 1983, communists backed by Cuba invaded Grenada, where there were over one hundred American medical students.  Reagan immediately sent in our troops and saved the students, bringing them back to the United States safely.  Students were seen on television kissing the American soil as soon as they got off their planes.

Also in 1983, communists backed by Cuba invaded Grenada, where there were over one hundred American medical students.  Reagan immediately sent in our troops and saved the students, bringing them back to the United States safely.  Students were seen on television kissing the American soil as soon as they got off their planes.

In 1984, Reagan stood for reelection against Walter Mondale, the former Vice President under Jimmy Carter.  Mondale promised to raise taxes.  In the first of two debates, Reagan's mind had been stuffed with facts by his advisers preparing him, and Reagan did poorly.  Mondale pulled nearly even in the polls.  For the second and final debate, conservatives demanded that his advisers "let Reagan be Reagan."  Free to be himself, Reagan thoroughly destroyed Mondale in the second debate and even showed a great deal of class in politely accepting the moderator's cutting his closing short (due to time constraints).  Reagan then won one of the biggest landslide victories in U.S. history.

In 1984, Reagan stood for reelection against Walter Mondale, the former Vice President under Jimmy Carter.  Mondale promised to raise taxes.  In the first of two debates, Reagan's mind had been stuffed with facts by his advisers preparing him, and Reagan did poorly.  Mondale pulled nearly even in the polls.  For the second and final debate, conservatives demanded that his advisers "let Reagan be Reagan."  Free to be himself, Reagan thoroughly destroyed Mondale in the second debate and even showed a great deal of class in politely accepting the moderator's cutting his closing short (due to time constraints).  Reagan then won one of the biggest landslide victories in U.S. history.

In 1985, Reagan began authorizing the sale of arms to Iran in exchange for its work to free American hostages held captive in the Middle East.  Two years later this would turn into the "Iran-Contra" scandal, as the proceeds of those sales were intended to be sent to anti-communist freedom fighters in Nicaragua (the "Contras").  Congress, which was controlled by Democrats, had passed a law prohibiting funding of the Contras, and saw this as a violation of that law.  Reagan was never charged with any crime, however.  This became known as the "arms for hostages" deal.

In 1985, Reagan began authorizing the sale of arms to Iran in exchange for its work to free some American hostages held kidnapped and helped captive in the Middle East.  Two years later this would turn into the "Iran-Contra" scandal, as the proceeds of those sales were intended to be sent to anti-communist freedom fighters in Nicaragua (the "Contras").  Congress, which was controlled by Democrats, had passed a law prohibiting funding of the Contras, and saw this as a violation of that law.  Reagan was never charged with any crime, however.  This became known as the "arms for hostages" deal.

In 1986, Reagan cut taxes much further.  He also met with Gorbachev (the leader of the Soviet Union) in Reykjavik, Iceland to negotiate an arms reduction deal.  Gorbachev was willing to give Reagan almost anything he wanted in return for just one demand:  abandon the Star Wars (SDI) program.  Reagan stuck to his conservative principles and refused, despite enormous media and world pressure to give in.  Reagan left Iceland with the media criticizing and ridiculing him for not reaching a deal.  It was obvious that Reagan was not trying merely to be popular; rather, he was trying to do what was best for America.

In 1986, Reagan cut taxes much further.  He also met with Gorbachev (the leader of the Soviet Union) in Reykjavik, Iceland to negotiate an arms reduction deal.  Gorbachev was willing to give Reagan almost anything he wanted in return for just one demand:  abandon the Star Wars (SDI) program.  Reagan stuck to his conservative principles and refused, despite enormous media and world pressure to give in.  Reagan left Iceland with the media criticizing and ridiculing him for not reaching a deal.  It was obvious that Reagan was not trying merely to be popular; rather, he was trying to do what was best for America.

In 1987, Reagan insisted on visiting the Berlin Wall, despite obvious security risks of being in the range of communist East German sharpshooters.  In preparing for his speech there, Reagan wrote into his draft remarks this demand: "Mr. Gorbachev, tear down this wall!"  His advisors removed this phrase from the speech as being unrealistic, silly and confrontational.  As the drafts of the speech went back and forth between Reagan and his advisors, Reagan kept inserting the phrase and his advisors kept removing it.  But Reagan included the phrase in his spoken words, the world heard it, and within a few years (1989) the wall was miraculously torn down.  Reagan is credited with ending communism in Eastern Europe and the Soviet Union, though it still remains in China, North Korea, Vietnam, Cuba and Venezuela.

In 1987, Reagan insisted on visiting the Berlin Wall, despite obvious security risks of being within range of communist East German sharpshooters.  In preparing for his speech there, Reagan wrote into his draft remarks this demand: "Mr. Gorbachev, tear down this wall!"  His advisors removed this phrase from the speech as being unrealistic, silly and confrontational.  As the drafts of the speech went back and forth between Reagan and his advisors, Reagan kept inserting the phrase and his advisors kept removing it.  But Reagan included the phrase in his spoken words, the world heard it, and within a few years (1989) the wall was miraculously torn down.  Reagan is credited with ending communism in Eastern Europe and the Soviet Union, though it still remains in China, North Korea, Vietnam, Cuba and Venezuela.

In 1988, Reagan struck a deal for free trade (no tariffs) with Canada.  Reagan was also instrumental in enabling his Vice President, George H.W. Bush, to be elected president in 1988 in a close race.  

In 1988, Reagan struck a deal for free trade (no tariffs) with Canada.  Reagan was also instrumental in enabling his Vice President, George H.W. Bush, to be elected president in 1988 in a close race.  

In 1988 the economy was doing well based on eight years of conservative policies under President Reagan.  President George H.W. Bush, Reagan's Vice President, won the Republican nomination for president and rode on Reagan's successes to win the presidential election in 1988.  But he made a famous campaign promise of "Read my lips, no new taxes," which he later broke as President when he signed a tax increase passed by the Democratic Congress.  The tax increase was to deal with a massive budget deficit, but breaking that promise caused enormous political damage to Bush.

In 1988 the economy was doing well based on eight years of conservative policies under President Reagan.  President George H.W. Bush, Reagan's Vice President, won the Republican nomination for president and rode on Reagan's successes to win the presidential election in 1988.  But he made a famous campaign promise of "Read my lips, no new taxes," which he later broke as President when he signed a tax increase passed by the Democratic Congress.  The tax increase was to deal with a massive budget deficit, but breaking that promise caused enormous political damage to Bush.

In 1990, Saddam Hussein thought that America would do nothing when he invaded and easily conquered nearby Kuwait, where there are lucrative oil fields.  President George H.W. Bush, alarmed by the consequences of Saddam Hussein controlling so much oil and the injustice of the invasion, struck back with American troops.  We quickly defeated (and killed) Hussein's army and drove the few survivors back to Baghdad.  American casualties were extremely low, and President Bush was a hero.  This combat was code-named Operation Desert Storm.  The Operation never intended to overthrow or capture Saddam Hussein himself, but President George H.W. Bush was later criticized for not "finishing the job," and some say that his son (the current President George W. Bush) wanted to take care of that.

In 1990, Saddam Hussein thought that America would do nothing when he invaded and easily conquered nearby Kuwait, where there are lucrative oil fields.  President George H.W. Bush, alarmed by the consequences of Saddam Hussein controlling so much oil and the injustice of the invasion, struck back with American troops.  We quickly defeated (and killed) Hussein's army and drove the few survivors back to Baghdad.  American casualties were extremely low, and President Bush was a hero.  This combat was code-named Operation Desert Storm.  The Operation never intended to overthrow or capture Saddam Hussein himself, but President George H.W. Bush was later criticized for not "finishing the job," and some say that his son (the future President George W. Bush) wanted to take care of that.

The high point in the war came when Saddam Hussein began launching missiles at the troops, missiles thought to contain chemical warheads that could cause horrific death.  The American troops secretly had Patriot missiles," the design of which was based on President Reagan's "Star Wars program, and these American missiles intercepted and shot down the Iraqi missiles in mid-flight.  It was spectacular to watch a fast-moving enemy missile be tracked and then exploded in mid-air by another fast-moving defense missile.  This was something that liberals, including scientists, claimed was impossible to do.  Hussein launched missile after missile, while an American soldier sitting in front a computer screen in a trailer fired Patriot missile after missile to shoot down the enemy missiles.

The high point in the war came when Saddam Hussein began launching missiles at the troops, missiles thought to contain chemical warheads that could cause horrific death.  But the American troops secretly had Patriot missiles, the design of which was based on President Reagan's "Star Wars" program, and these American missiles intercepted and shot down the Iraqi missiles in mid-flight.  It was spectacular to watch a fast-moving enemy missile be tracked and then explode in mid-air due to a collision by another fast-moving defense missile.  This was something that liberals, including scientists, claimed was impossible to do.  Hussein launched missile after missile, while an American soldier sitting in front a computer screen in a trailer fired Patriot missile after missile to shoot down the enemy missiles.

Angry and frustrated, Hussein then fired his missiles at civilian populations in Israel.  It had been developing its own missile defense program, but it was not ready for this.  Quickly the American troops rushed their missile defense to Israel so it could protect its population too.

Angry and frustrated, Hussein then fired his missiles at civilian populations in Israel.  It had been developing its own missile defense program, but it was not ready for this.  Quickly the American troops rushed their missile defense to Israel so it could protect its population too.

The "smear" campaign against Thomas was one of the worst in American history, and Thomas himself appeared on national television to bitterly describe it as a "high-tech lynching."  In a flagrant violation of the rules of the Senate, the staff of a Democratic member of the Judiciary Committee leaked a confidential FBI background report to the National Public Radio (NPR), which contained a vicious personal allegation about Thomas's past.  Nothing was proven and there was much reason to disbelieve the allegation.  But the plan was to intimidate Thomas into withdrawing, or turn the public against him, or give senators enough of a reason to vote against him.  The liberals even scheduled a vote on the nomination almost immediately after the airing of the allegation, which could only be postponed by unanimous consent under Senate rules, in order to force senators to vote before the allegation could be disproved.  But the vote was postponed, hearings were held, and only one senator moved from being for Thomas to being against him: the former Ku Klux Klan Democratic Senator Robert Byrd of West Virginia.  Thomas was confirmed by a vote of 52-48, the narrowest margin in history for a Supreme Court Justice.

The "smear" campaign against Thomas was one of the worst in American history, and Thomas himself appeared on national television to bitterly describe it as a "high-tech lynching."  In a flagrant violation of the rules of the Senate, the staff of a Democratic member of the Judiciary Committee leaked a confidential FBI background report to the National Public Radio (NPR), which contained a vicious personal allegation about Thomas's past.  Nothing was proven and there was much reason to disbelieve the allegation.  But the plan was to intimidate Thomas into withdrawing, or turn the public against him, or give senators enough of a reason to vote against him.  The liberals even scheduled a vote on the nomination almost immediately after the airing of the allegation, which could only be postponed by unanimous consent under Senate rules, in order to force senators to vote before the allegation could be disproved.  But the vote was postponed, hearings were held, and only one senator moved from being for Thomas to being against him: the former Ku Klux Klan Democratic Senator Robert Byrd of West Virginia.  Thomas was confirmed by a vote of 52-48, the narrowest margin in history for a Supreme Court Justice.

Your teacher was in D.C. at the time and had personally met Clarence Thomas a year earlier.  Your teacher, the entire city of D.C., and even the entire nation, was riveted by this drama.  A liberal colleague of your teacher quipped afterward that the media ambush of Thomas during the confirmation process was not likely to make him any less conservative.  Since 1991 Thomas has been part of a conservative block on the Supreme Court that has grown to a total of 4 or 5 Justices out of a total of 9, sometimes enough for a majority and sometimes just shy by one vote.

Your teacher was in D.C. at the time and had personally met Clarence Thomas a year earlier.  Your teacher, the entire city of D.C., and even the entire nation, was riveted by this drama.  Since 1991 Thomas has been part of a conservative block on the Supreme Court that has grown to a total of 4 or 5 Justices out of a total of 9, sometimes enough for a majority and sometimes just shy by one vote.

== Bill Clinton ==

== Bill Clinton ==

Conservatives supported a candidate (Pat Buchanan) to challenge Bush for the Republican nomination; Bush won the nomination but was crushed in a three-way contest in the fall.  Democrat Bill Clinton won 43% of the vote, Bush won 37%, and independent third-party candidate Ross Perot (a wealthy businessman from Texas concerned about the budget deficit) won 19%.

Conservatives supported a candidate (Pat Buchanan) to challenge Bush for the Republican nomination; Bush won the nomination but was crushed in a three-way contest in the fall.  Democrat Bill Clinton won 43% of the vote, Bush won 37%, and independent third-party candidate Ross Perot (a wealthy businessman from Texas concerned about the budget deficit) won 19%.

Bill Clinton became a controversial president who served for eight years but never won even 50% of the vote.  In 1993, his wife (the "First Lady") Hillary Clinton led a massive committee-based effort for the government to take over the health care system, which is about 1/7th of the nation's economy.  Physicians, pro-lifers and the insurance industry helped defeat Hillary's complex plan in Congress.  Also in 1993, terrorists linked to radical Muslims set off a truck bomb under the World Trade Center in an attempt to knock down the two massive towers.  Fortunately, the plan failed, and only six were killed.

Bill Clinton became a controversial president who served for eight years but never won even 50% of the vote.  In 1993, his wife (the "First Lady") Hillary Clinton led a massive committee-based effort for the government to take over the health care system, which is about 1/7th of the nation's economy.  Conservative doctors, pro-lifers and the insurance industry helped defeat Hillary's complex plan in Congress.  Also in 1993, terrorists linked to radical Muslims set off a truck bomb under the World Trade Center in an attempt to knock down the two massive towers.  Fortunately, the plan failed, and only six were killed.

Shortly after he was inaugurated, Clinton sought removal of the longstanding ban on homosexuals in the military.  But the Democrats in Congress refused to lift the ban, and instead a policy of "don't ask, don't tell" was implemented.  Gays would not be expelled from the military unless they actively promoted ("tell") their lifestyle.  That policy remains in force to this day, and Barack Obama campaigned by promising to lift the ban. But will the House of Representatives, which face elections every two years, risk angering voters by caving into the homosexual activists?

Shortly after he was inaugurated, Clinton sought removal of the longstanding ban on homosexuals in the military.  But the Democrats in Congress refused to lift the ban, and instead a policy of "don't ask, don't tell" was implemented.  Gays would not be expelled from the military unless they actively promoted ("tell") their lifestyle.  That policy remained in force until late 2010, when Democrats repealed it.

Enjoying big Democratic majorities in the House and Senate, Clinton aggressively pushed a liberal agenda.  He raised taxes on both individuals and businesses.  In 1994, he signed a federal gun control bill into law known as the "Brady Bill," which imposed a national five-day waiting period for handgun purchasers and required a criminal background check.  He signed into law the "Violence Against Women Act," which authorized women to sue institutions like colleges in federal court over alleged incidents that were never charged or proven as crimes (this provision was later held unconstitutional), and authorized the spending of billions of dollars in taxpayer money to encourage women to charge men with crimes.  He signed into law the North American Free Trade Agreement (NAFTA) in 1993, which created a "free-trade zone" encompassing Mexico, Canada, and the United States and submitted the United States to control by an international tribunal to decide disputes in trade.  This resulted in a big increase in importation of illegal drugs (like cocaine and marijuana) from Mexico, and was later used to order the United States to allow never-inspected trucks to enter from Mexico to flood the American highways.  NAFTA was unable to obtain the 2/3rd vote required in the Senate to be ratified as a treaty, and instead it was (perhaps improperly) passed as an ordinary federal law with mere majority votes in Congress.

Enjoying big Democratic majorities in the House and Senate, Clinton aggressively pushed a liberal agenda.  He raised taxes on both individuals and businesses.  In 1994, he signed a federal gun control bill into law known as the "Brady Bill," which imposed a national five-day waiting period for handgun purchasers and required a criminal background check.  He signed into law the "Violence Against Women Act," which authorized women to sue institutions like colleges in federal court over alleged incidents that were never charged or proven as crimes (this provision was later held unconstitutional), and authorized the spending of billions of dollars in taxpayer money to encourage women to charge men with crimes.  He signed into law the North American Free Trade Agreement (NAFTA) in 1993, which created a "free-trade zone" encompassing Mexico, Canada, and the United States and submitted the United States to control by an international tribunal to decide disputes in trade.  This resulted in a big increase in importation of illegal drugs (like cocaine and marijuana) from Mexico, and was later used to order the United States to allow never-inspected trucks to enter from Mexico to flood the American highways.  NAFTA was unable to obtain the 2/3rd vote required in the Senate to be ratified as a treaty, and instead it was (perhaps improperly) passed as an ordinary federal law with mere majority votes in Congress.

In the "midterm elections" in 1994 (called "midterm" because it is halfway between the presidential elections), there was a voter backlash against the liberal policies of President Bill Clinton.  Republicans swept to victory in a landslide, and captured large majorities in both the House and Senate.  Then, in a "lame duck" session of the Democratic House and Senate in December 1994, they passed a law requiring the United States to join the World Trade Organization.  Like NAFTA but on a world-wide scale, the WTO aims to promote world trade by lowering trade barriers.  In practice, it forces the United States to submit to the authority of an international tribunal comprised mostly of nations hostile to America, and that court has ruled against the United States in nearly every trade dispute.  Also like NAFTA, the WTO was passed as an ordinary federal law rather than obtaining the 2/3rd vote required to pass treaties.

In the "midterm elections" in 1994 (called "midterm" because it is halfway between the presidential elections), there was a voter backlash against the liberal policies of President Bill Clinton.  Republicans swept to victory in a landslide, and captured large majorities in both the House and Senate.  But before the Republican majority took office, a "lame duck" session of the Democratic House and Senate passed a law requiring the United States to join the World Trade Organization.  Like NAFTA but on a world-wide scale, the WTO aims to promote world trade by lowering trade barriers.  In practice, it forces the United States to submit to the authority of an international tribunal comprised mostly of nations hostile to America, and that court has ruled against the United States in nearly every trade dispute.  Also like NAFTA, the WTO was passed as an ordinary federal law rather than obtaining the 2/3rd vote required by the Constitution to ratify treaties.

'''Debate:  Do you think Congress should pass treaties as ordinary laws when unable to obtain the 2/3rd vote required under the Constitution to ratify a treaty?'''

'''Debate:  Do you think Congress should pass treaties as ordinary laws when unable to obtain the 2/3rd vote required under the Constitution to ratify a treaty?'''

The Republican Congress that took over in 1995 passed several important conservative laws, including a massive welfare reform (this was in last week's lecture) and the Defense of Marriage Act (DOMA), which established that federal law would recognize only marriages between a man and a woman and that one state did not have to recognize a same-sex marriage performed in another state.  Clinton, chastened by the landslide defeat of his Democratic Party, began to govern more like a conservative.  He also wanted to win reelection in 1996, and he knew he had to move in the same direction as the nation: to the "right" (more conservative).

The Republican Congress that took over in 1995 passed several important conservative laws, including a massive welfare reform (this was in last week's lecture) and the Defense of Marriage Act (DOMA), which established that federal law would recognize only marriages between a man and a woman and that one state did not have to recognize a same-sex marriage performed in another state.  Clinton, chastened by the landslide defeat of his Democratic Party, began to govern more like a conservative.  He also wanted to win reelection in 1996, and he knew he had to move in the same direction as the nation: to the "right" (more conservative).

On April 19, 1995, domestic terrorism hit the United States when Timothy McVeigh exploded a massive truck bomb in front of the Murrah Federal Building in Oklahoma City, Oklahoma.  This caused the building to collapse and kill 168 people, including children in a day care center that was in the building, and injured over 800.  Reportedly McVeigh was angry at the federal government for a raid that it conducted against a group in Waco, Texas, which occurred exactly two years earlier and resulted in the deaths of dozens of citizens.  Speculation that McVeigh had foreign help for this attack was never proven, and McVeigh himself was executed after a lengthy trial that included testimony by a friend who described how McVeigh intended to do this.  A jury did not grant the prosecutor's request to impose the death penalty on a colleague of McVeigh, who instead received life imprisonment.

On April 19, 1995, domestic terrorism hit the United States when Timothy McVeigh exploded a massive truck bomb in front of the Murrah Federal Building in Oklahoma City, Oklahoma.  This caused the building to collapse and kill 168 people, including children in a day care center that was in the building, and injured over 800.  Reportedly McVeigh was angry at the federal government for a raid that it conducted against a group in Waco, Texas, which occurred exactly two years earlier and resulted in the deaths of dozens of citizens.  Speculation that McVeigh had foreign help for this attack was never proven, and McVeigh himself was executed after a lengthy trial that included testimony by a friend who described how McVeigh intended to do this.  McVeigh got the death penalty for his crime.

Clinton's approval rating increased based on his response to this terrorism, just as the future President George W. Bush's approval rating soared after the terrorist attack in 2001.  Clinton also benefited from an improving economy, which increased his changes of being reelected.  In 1996, the Republicans nominated the aging Senator Bob Dole, a moderate Republican, to run against Clinton.  Clinton, along with his Vice President Al Gore, won reelection easily but failed to attain 50% support by the voters.  Ross Perot ran again, but did not do as well as he had in 1992.

Clinton's approval rating increased based on his response to this terrorism, just as the future President George W. Bush's approval rating soared after the terrorist attack in 2001.  Clinton also benefited from an improving economy, which increased his chances of being reelected.  In 1996, the Republicans nominated the aging Senator Bob Dole, a moderate Republican, to run against Clinton.  Clinton, along with his Vice President Al Gore, won reelection easily but failed to attain 50% support by the voters.  Ross Perot ran again, but did not do as well as he had in 1992.

By the 1997 the internet was becoming mainstream and very popular, and the nation began to experience the "dot-com" boom (e.g., amazon'''.com''') that would last until 2000.  An internet craze swept the nation, and speculators (short-term investors) bought up the stock of new internet companies and drove up their price to high levels far above what was reasonable.  The stock market, particularly the high-tech NASDAQ exchange, reached record levels.  The economy benefited from all this, and the first budget surplus in decades was achieved by the federal government.  But just as in 1929, the boom was followed by a "bust" that occurred in mid-2000.

By the 1997 the internet was becoming mainstream and very popular, and the nation began to experience the "dot-com" boom (e.g., amazon'''.com''') that would last until 2000.  An internet craze swept the nation, and speculators (short-term investors) bought up the stock of new internet companies and drove up their price to high levels far above what was reasonable.  The stock market, particularly the high-tech NASDAQ exchange, reached record levels.  The economy benefited from all this, and the first budget surplus in decades was achieved by the federal government.  But just as in 1929, the boom was followed by a "bust" that occurred in mid-2000.