Texas & the New Millennium

1. Politics & Economics
2. The War on Terrorism

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Politics & Economics

1. Why was the election of George W. Bush as president so controversial?
       The outcome of the race depended on the returns from Florida, where Jeb Bush, George Bush’s brother, was governor. Democrats alleged that some counties had confusing ballots and that many Democrat votes had not be properly counted. Further, the contested counties had a high population of black voters who historically had voted Democrat.
       Since the Florida election had ended in a virtual tie, the Democrats wanted a recount in some counties. However, deadlines mandated by election laws apparently did not leave enough time for recounts. The Florida secretary of state certified the election and named Bush the winner. Democrats appealed to the Florida Supreme Court whose members favored a recount, but Republicans took the case to the United States Supreme Court whose majority ruled that Florida election laws should be followed. Florida’s returns were allowed to stand, and Bush became the new president.
   
2. How did the national recession in 2001 and 2002 affect Texas?
       The recession affected the Texas economy as overall non-farm employment fell. Layoffs were common among technology companies. Unemployment was expected to rise to 5.5 percent in 2002. The transportation, communication, manufacturing, wholesale and retail trade and service industries all suffered net job loses during the last half of 2001 and the beginning of 2002.
   
3. What were some positive economic signs in Texas during this time?
       Productivity continued to grow and new residents increased the state's population. State exports of about $112 billion in 2000 were predicted to rise to approximately $144 billion by 2005. Additionally, the state’s oil and gas industry, a mainstay of the Texas economy, continued to prosper due to high energy prices.
   
4. What caused the Enron collapse and what was the reaction of the U.S. Congress to its collapse?
       Enron collapsed after it was discovered questionable accounting practices had overstated its revenues by millions of dollars. Enron's collapse caused thousands of the company's employees who held its stock to lose their retirement benefits. A congressional investigation was held to find out what happened and Enron's auditing firm, Arthur Anderson, was put on trial for obstructing justice for shredding documents about Enron's practices after being notified about the congressional investigation. The fallout from the Enron collapse resulted in new laws being considered that would limit the percentage of company stock employees could hold in their company's retirement plan.
5. What natural disaster and economic crisis occurred in Texas from 2007-2009?
       An extreme drought throughout Texas cause $3.6 billion in agriculture losses. A mortgage crisis threatened banks and the financial services services. This caused a collapse in consumer spending and many business suffered declining sales and were forced to layoff workers.

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The War on Terrorism

1. What actions did the United States government take in response to the September 11 terrorist acts?
       After the attacks on New York and Washington, the Bush administration took strong action that was unparalleled by any other such actions in American history since the 1941 attack on Pearl Harbor that forced the United States into World War II. He promised a War on Terrorism and vowed to punish terrorists and the countries who supported them.
       The first target of the War on Terrorism was the ruling government of Afghanistan, the Taliban. The Taliban refused to hand over Osama bin Laden and members of the al-Qaida terrorist organization, which were responsible for the September 11th terrorists acts. The United States used massive air power and around-the-clock bombing against the Taliban and al- Qaida forces. The bombing, with support from Afghan Northern Alliance rebels and elite US troops drove the Taliban from power.
    
2. What steps did the United States government and the Texas State Government take to protect citizens from further terrorists acts?
       President Bush formed the Office of Homeland Security. This office was given the responsibility to formulate ways to protect the United States from future attacks. In addition, Bush proposed that the FBI and CIA be given additional powers to deal with potential terrorists. In response to these proposals, the U.S. Congress passed the USA Patriot Act.
       Texas Governor Richard Perry created a Task Force on Homeland Security to recommend actions needed to protect Texans from terrorists. Among other changes are stricter security in state airports and around any likely terrorist targets such as the Capitol Building and other government-related buildings in Austin.
   
3. What effect did the September 11 terrorist acts have on the U.S. and Texas economy?
       The September 11, 2001, terrorists contributed to the national economic recession in 2001 and 2002. Consumer confidence was shaken and spending declined. Airline travel dropped substantially following the attacks as many would-be passengers were now afraid to fly or discouraged by new security policies. Both Texas-based American Airlines and Continental Airlines had to lay off workers because of the decline in air traffic.

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