Zimbabwe: With unemployment at about 80%, manufacturing at a standstill, and food shortages, Zimbabwe faces a major economic crisis. The most staggering figure, though, is inflation in the southern African country. In the last few months, inflation has risen over 11 million percent!

Economists blame the rising inflation rate—the highest in the world—on President Robert Mugabe, who is accused of printing more money so that he could pay for his reelection campaign and in an attempt to keep the economy from collapsing. At the current rate of inflation, prices double about every three weeks.

Mugabe's reelection in June has been heavily disputed. Both Mugabe and opposition leader Morgan Tsvangirai claim to have won the election, and the two sides cannot reach an agreement over who will take control of the government.

Millions of Zimbabwe citizens have fled into neighboring countries, and many who remain have turned to bartering goods rather than using money to pay for the things they need.

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Related Links

• Zimbabwe Inflation Rockets Higher
  Article covers the rising inflation, and the reasons for it, including information on the disputed election. (Source: BBC, August 19, 2008)
• Zimbabwe Inflation Tops 11 Mln Pct as Talks Drag
  Covers the skyrocketing inflation, the fighting over the election results, and the effects on the citizens of Zimbabwe. (Source: Reuters, August 19, 2008)
• Map of Zimbabwe
  Map of Zimbabwe, showing the surrounding countries and including a locator globe. (Source: UN, January 2004)

Other Issues in the Region

The Legacy of Colonialism

The European colonizers who divided the African continent among themselves, gave little consideration to the people living there. They disrupted borders separating various ethnic groups and frequently overturned the governments of those groups. New borders often pushed warring groups together, setting the stage for civil conflicts and border wars that have continued to this day. Sudan, Rwanda, Ethiopia, Eritrea, Somalia, Ivory Coast, Zimbabwe, Uganda, Sierra Leone, and the Democratic Republic of Congo are among the countries that have been torn by corruption, political unrest, and brutal wars.

• Somali Insurgents 'Take Key Port'
  Somalia has faced ongoing civil conflict for years. The country has not had a functioning government since 1991. Over the summer militant Islamic insurgents took over towns, ports, and attacked soldiers in an effort to fight the transitional Somali government. (Source: BBC, August 22, 2008)

Economic Development

Economic development remains a major challenge for African nations. After colonial rule ended, many African nations continued the colonial practice of exporting raw materials instead of using those materials to produce manufactured goods. Like the colonial powers before them, leaders of the newly independent African nations and a few multinational corporations based in Europe, Asia, and North America have benefited greatly from the export of natural resources. Meanwhile, in all but a few African nations, civil wars and cross-border wars, corrupt governments, foreign debt, and the AIDS crisis have severely hampered economic growth.

However, Africa is changing. A growing awareness of the need for economic diversification is taking hold and inspiring action. Education and democratic principles are increasingly recognized as keys to progress. But some concerned leaders say that along with these principles, there must be fair trade, reduced subsidies and tariffs by the major players in the world market, greater rights for African workers, and greater empowerment of women. About 55 percent of Africa's people are under age 18, and this group especially needs education and employment if Africans are to break the cycle of poverty. Africa's human capital and abundant natural resources offer great potential, but these assets need to be developed for the good of a greater number of people in Africa.

• Odinga's chance to shape Kenya
  Four months after the presidential election, Raila Odinga is sworn in as prime minister of Kenya. He will share power with President Mwai Kibaki. Odinga has promised to help the people and economy of Kenya. (Source: BBC, April 17, 2008)

Health Care

The African continent faces many serious health issues. They range from high rates of infant mortality to shortened life spans for those who survive past infancy. The reasons that many Africans have shorter than average life spans often stem from the continent's high rates of poverty, malnutrition, and disease. Public health departments in Africa must deal with a variety of illnesses, including those transmitted by insects (such as malaria, which is spread by mosquitoes, and sleeping sickness, which is spread by the tsetse fly). Other diseases are associated with parasites and bacteria found in improperly cooked food and contaminated water. Still other serious diseases, such as hepatitis-B, are spread through viruses transmitted from human to human. Tuberculosis and polio are also a concern, as is the occasional outbreak of the deadly Ebola virus. The greatest health concern is the AIDS crisis in sub-Saharan Africa, which is home to over 70 percent of the world's AIDS-infected people and where around 19 million Africans have died of AIDS.

• Africa Failing To Cut Infant Deaths
  African countries are failing to make progress towards a UN goal to cut infant and mother mortality by two-thirds by 2015. (Source: Reuters, April 16, 2008)

Paraguay: On August 15, Fernando Lugo, a former Catholic bishop, was inaugurated as the new president of Paraguay. Lugo wore sandals to his inauguration as a symbol of his commitment to Paraguay's poor.

Lugo's inauguration marks the end of 61 years of rule by the Colorado Party, a right-wing political party that gave positions of governmental power to military leaders and used the police to keep dossiers on its citizens.

President Lugo has promised to reform the government, fighting corruption and trying to help the poor. In the first week of his presidency, Lugo replaced the commanders of the army, navy and air force, as well as the head of the national police. Lugo says that he will use his soldiers to carry out humanitarian work for the poor instead of to repress and intimidate Paraguay's citizens.

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Related Links

• Paraguay's President Faces Huge Task
  BBC article discusses the election of Lugo, his goals to reform Paraguay, and the challenges he faces. (Source: BBC, August 15, 2008)
• Paraguay's New President Replaces Military Command
  Story covers Lugo's signing of 30 decrees replacing the heads of Paraguay's military. (Source: Yahoo! News, August 21, 2008)
• Map of Paraguay
  Map of Paraguay from the UN. Includes a locator globe. (Source: UN, June 2004)

Other Issues in the Region

Income Gap

Latin America has abundant resources, but a small percentage of the people have benefited most from those resources. According to the World Bank, the richest 10 percent of the population of Central and South America and the Caribbean earn 48 percent of the region's income. The poorest 10 percent earn only 1.6 percent. Attitudes about race and ethnicity are one reason for the widespread inequality in Latin America. Indigenous peoples and Latin Americans of African descent have fewer educational and job opportunities than whites. High-quality public services, such as health care, water, electricity, and sewage, are unequally divided according to race and socioeconomic status. The World Bank found that unequal distribution of resources hinders development and can be traced to patterns set up during European colonization. Solving the problem will require wise leadership, participatory democracy, and changes in social and political institutions to bring about reform.

• U.S. ship comforts Latin American poor in contest with Cuba
  The U.S. and Cuba have engaged in a battle to win the hearts of millions of Latin American poor. For a long time, communist Cuba has sent doctors to provide free surgery and other healthcare throughout Latin America. Now the U.S. is following suit by sending a huge hospital ship to provide free medical services in ports in Central and South America and the Caribbean. (Source: Reuters, August 1, 2007)

Giving Citizens a Voice

On September 11, 2001, the same day that terrorists attacked the United States, members of the Organization of American States (OAS), were meeting in Lima, Peru, to demonstrate their commitment to democracy. Among them were Canada, the United States, Mexico, and countries of Central America, South America, and the Caribbean. They signed the Inter-American Democratic Charter. The first article of the charter states, "The peoples of the Americas have a right to democracy, and their governments have an obligation to promote and defend it. Democracy is essential for the social, political, and economic development of the peoples of the Americas."

The charter spells out basic elements of a representative democracy. It emphasizes the importance of human rights and urges the participation of all citizens. It calls for the elimination of all forms of discrimination and addresses the need to eliminate poverty and illiteracy. Economic development and education are stressed as important factors in strengthening the democratic process.

• Cuba 'releases jailed dissidents'
  Human rights groups are praising Cuba's release of at least seven people who had been imprisoned for criticizing the country's communist government. (Source: BBC, April 24, 2007)

Rain Forest Resources

Brazil's rainforest covers a majority of the country's land. The forest is said to contain 30 percent of Earth's plant and animal species, and the oxygen produced by its plant life has given the region the nickname "the lungs of the world." But Brazil's growing population and expanding economy, particularly its agricultural economy, are putting new demands on the rainforests. Brazil's government is struggling to find a balance between rainforest preservation and economic growth.

• Pressures Build on Amazon Jungle
  Deforestation and forest fires in the Amazon jungle cause about 75% of Brazil's greenhouse gas emissions. But in the last few years Brazil has cut deforestation by 59%. (Source: BBC, January 14, 2008)

September 3

Labor Day is not just a holiday that marks the end of summer. In fact, the idea of a Labor Day began in the 1880s. Labor unions organized and established protest marches and picnics for their members as a way to draw attention to the issues facing American workers. The Central Labor Union organized the first Labor Day on September 5, 1882 in New York City. The idea spread to other unions and state governments. By 1890, eight states had passed Labor Day legislation.

In 1893, the United States was suffering an economic depression. Workers across the country were being laid off. Many workers went on strike. In 1894, President Grover Cleveland used 12,000 federal troops to break a strike of the American Railway Union. This action increased tension with labor unions across the country. President Cleveland and Congress quickly passed a law making the first Monday in September a national holiday to recognize the contributions of workers to the American way of life.

After World War II, nearly 50 percent of all workers belonged to a labor union. Labor unions' efforts improved conditions for all workers. By 2006, however, union membership was down to about 12 percent. Labor Day does not have the same meaning that it once did. Today, Labor Day is a long weekend for many people and an opportunity for many retail stores to hold big annual sales events—an ironic twist for the people who have to work on Labor Day.

Related Links

• The Origins of Labor Day
  A brief summary of the history of Labor Day from PBS's Online NewsHour.
• The History of Labor Day
  From the U.S. Department of Labor, a history of Labor Day.
• Labor Day
  Links to resources relevant to Labor Day. For example, the minimum wage by state, Labor Day facts from the Census Bureau, and different histories of labor unions.

Constitution Day

September 17

In 2004, Senator Robert Byrd of West Virginia pushed for the creation of a special day to honor and study the United States Constitution. Senator Byrd was frustrated that many Americans knew little about the document that created and defined their government. The result was Constitution Day. On September 17—the day the Constitution was signed—all schools that receive federal money must study the U.S. Constitution.

The Constitution is the backbone of the United States government. It brought the federal government into being, including its three branches—executive, judicial, and legislative—and the offices that accompany them—the Presidency, Congress, and the Supreme Court. The Constitution is also a “living document” that continues to help shape our government today and is continually adapted to changes in our society.

The Constitution came about in the late 1780s. At that time, the thirteen new states (based on the original thirteen colonies) were governed by the Articles of Confederation, which were created following America’s independence from Britain. But the Articles did not provide for a strong, unified government that could deal with the challenges facing the new nation. So in 1787, the Constitutional Convention was held in Philadelphia. Delegates from all thirteen states attended the Convention.

Not all of the delegates agreed on what kind of government America should have. Some wanted the states to have all the power, while others wanted a single government to control everything. The smaller states wanted equal representation in the government, while the larger states wanted representation based on population. A compromise was reached that gave states the rights that were not reserved for the main, or federal, government. A series of checks and balances were set up among the branches of the federal government to prevent any one of them from becoming too powerful. A two-part Congress was created, with a Senate that had equal representation of the states and a House of Representatives where representation is based on states’ populations. But the U.S. Constitution gave the true power to the American citizens. To make sure the rights of the citizens were protected, ten amendments were added to the end of the Constitution that spelled out the freedoms that U.S. citizens would have. This became known as the Bill of Rights.

Related Links

• The Constitution of the United States of America
  The entire text of the Constitution, including the Preamble, the Bill of Rights, and all the Amendments.
• The National Constitution Center
  To learn more about Constitution Day and the events surrounding it this year, check out the National Constitution Center’s site.
• The Charters of Freedom: Constitution of the United States
  Explore the history and issues behind the creation of the Constitution.

Hispanic Heritage Month

September 15–October 15

In 1968, the U.S. Congress declared that the week of September 15 would be National Hispanic Week in honor of Hispanic Americans. Twenty years later the period was expanded, and now Hispanic Heritage Month runs from September 15 until October 15. During this time, Americans have a chance to look back at the contributions Hispanics have made to United States history and culture and to look forward to the growing role Hispanics will play in our nation's future. September 15 was chosen because it was on that date in 1821 that the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua achieved their independence from Spain. Also, September 16, 1810, was when Mexico declared its independence from Spain, with Chile doing the same two days later.

Hispanic Americans are any U.S. residents who trace their ancestry to Spain, Mexico, or any of the Spanish-speaking nations of Central America, South America, and the Caribbean. During the 1990s, the number of Hispanic Americans grew by 35 percent. Today there are over 41 million Hispanics living in the United States, making up 14 percent of our nation's population. That number is expected to continue to grow in the coming decades, with some projecting that by the year 2050, Hispanics will make up almost one-fourth of the U.S. population. Most Hispanic Americans—almost two-thirds—are of Mexican decent, while about one-tenth are of Puerto Rican decent. Today, Hispanics occupy all walks of American life, and the influence of Hispanic culture can be found in popular American food, music, and literature.

Related Links

• Legislative History of Hispanic Heritage Month
  Excerpts from the legislation that established Hispanic heritage observances can be found here.
• Hispanic Heritage Month Sept. 15–Oct. 15, 2006
  From the U.S. Census Bureau, these "Facts For Features" provide a wealth of statistical data on the Hispanic American population.

China: At least eight Americans and several other foreigners were taken into custody by Chinese authorities during the Beijing Olympics for attempting to protest China's treatment of Tibet. The activists, most of whom blog about the issues they're protesting and consider themselves "citizen journalists," have been detained for such actions as holding up a Tibetan flag outside the National Stadium and hanging a "Free Tibet" banner outside China's state media outlet.

China had feared widespread protests in the weeks leading up to the Olympic Games. China has ruled over the western region of Tibet since 1950, and people around the world have protested human rights abuses there in recent years. In preparation for the expected protests, Chinese authorities set up areas where people could legally protest if they applied for a permit. But no permits have been awarded, no protests have taken place in the protest areas, and some of the Chinese citizens who applied for permits have also been taken into custody or put under watch.

Two Chinese women in their late 70s were sentenced to a year of "re-education" in a labor camp for applying for permission to protest. The women had been forced to move from their homes in 2001 to make room for development and have been fighting for compensation ever since.

Related Links

• More Americans Held as China Steps Up Scrutiny
  Article tells the story of the American and other foreign activists who have been detained for protesting the Beijing Olympics. (Source: Reuters, August 20, 2008)
• China's Push for the Perfect Games
  Covers the story of two Chinese women in their 70s who face a year of "re-education" in a labor camp if they do not stop protesting. (Source: BBC, August 22, 2008)
• Map of China
  Map of China from the University of Texas. (Source: University of Texas, 2001)

Other Issues in the Region

Trade and Prosperity

East Asian economies became global powerhouses in the 1970s and 1980s, but the decline of Asian economies in the 1990s created a crisis that led around the globe. The rapid changes in East Asian economies also raised concerns about the use of child-labor and sweatshops, where people work long hours for little pay.

• Japan Surplus Down as U.S. Weakens
  The U.S. recession has caused a decreased demand in Japanese products and Japan's oil imports have increased recently, causing Japan's trade surplus to shrink and fears of a Japanese recession to grow. (SourceBBC, August 21, 2008)

Ring of Fire

The countries of East Asia are located within the "Ring of Fire," a chain of volcanoes rimming the Pacific Ocean. Volcanoes formed the islands that form the nation of Japan. The islands remain vulnerable to volcanic eruptions and earthquake activity. People in Japan have adjusted to such threats. National and local governments inform citizens and visitors about what to do should an earthquake occur. Scientists regularly monitor seismic activity (earth tremors) and the islands' volcanoes. Earthquake drills are held annually, and governments have sought to improve construction standards to minimize earthquake damage.

• Mapping the Earthquake Zone
  Interactive exploration of the earthquake that struck the Sichuan province in China on May 12, 2008, leaving more than 71,000 people dead or missing. (Source: BBC, June, 2008)

Quality of Life

The rapid industrialization of East Asia has made some countries among the most prosperous in the world. But the population growth in countries like China has also meant that poverty and poor health care still plague many East Asians.

In an effort to find better jobs to support their families, tens of millions of Chinese are leaving their homes in rural areas and moving to the booming cities. They are lured by new construction jobs and the opportunity to send money home to their families. But many have difficulty getting paid for their work. Often these workers are treated as second-class citizens in the cities, and many workers cannot prove their claims because they did not sign contracts when taking jobs.

• Hope for China's Air Even After Polluters Reopen
  Discusses China's efforts to reduce pollution in the buildup to the Olympics, and what China can do to ensure that the improvements remain once the games are over. (Source: Reuters, August 15, 2008)

Russian armored vehicles on the move in Georgia.

On August 7, the country of Georgia launched an attack on the region of South Ossetia, which lies within Georgian borders. Georgia is a country in the Caucasus region south of Russia. South Ossetia is officially part of Georgia, but has been trying to gain independence since the early 1990s. After a series of clashes over the summer, Georgia struck South Ossetia with a ground force and an aerial bombardment. Georgia gained control of the South Ossetian capital of Tskhinvali for part of August 8.

Russia is an ally of South Ossetia, and supports its bid for independence. Russia responded to the Georgian attack by sending thousands of troops into South Ossetia and bombing military bases in Georgia. The fighting continued for the next week, despite talks of a ceasefire. On August 15 and 16, Georgia and then Russia signed a peace deal that was written with the help of the European Union and U.S. Secretary of State Condoleeza Rice.

Despite promising to pull out of Georgia, however, Russia retained its military presence there. By August 21, Russia had agreed to pull out most of its troops, leaving a peacekeeping force of about 500 troops at strategic checkpoints.

Leaders of South Ossetia and a second breakaway region of Georgia—Abkhazia—have urged Russia to recognized their independence. Russia is in a difficult position, however, because the U.S. and most of Western Europe support Georgia and believe that Russia has been overly aggressive in supporting South Ossetia and Abkhazia.

Related Links

• Map of Georgia
  Map of Georgia, includes the South Ossetia and Abkhazia regions. (Source: University of Texas, 2008)
• Map of Caucasus Region
  Map for context, of the Caucasus Region south of Russia. (Source: University of Texas, 2003)
• Georgia-Russia Conflict
  Comprehensive site from the BBC on the conflict in Georgia. Includes a good map, video coverage of the conflict, articles on the events, and a timeline of events. (Source: BBC, August 21, 2008)
• Russia Battles Georgia Over Breakaway Region of South Ossetia
  Article from the Guardian covering the start of the current crisis in Georgia. (Source: The Guardian, August 8, 2008)
• Red Cross To Focus on Missing and Detainees in South Ossetia
  Article covering the efforts of the Red Cross to protect civilians who have been caught up in the crisis. (Source: Reuters, August 21, 2008)

Critical Thinking Questions

1. Causes and Effects Name three effects of Georgia’s attack on South Ossetia.
2. Summarize What is Russia’s position on South Ossetia’s and Abkhazia’s bid for independence?
3. Form and Support Opinions The United States sent humanitarian aid to Georgia, but no military support. Do you think the U.S. made the right choice? Support your answer.

On August 18, President Pervez Musharraf announced that he was resigning from his post as leader of Pakistan. Pakistan’s National Assembly accepted the resignation hours later, and Muhammad Mian Sumroo, Speaker of the Pakistani Senate, stepped up as caretaker president until a successor can be chosen.

Musharraf resigned because he faced potential impeachment for violations of the constitution and several charges of misconduct. In November 2007, Musharraf had declared a state of emergency and suspended the constitution in an effort to block opposition to his reelection. In his resignation speech, Musharraf stated that everything he did was for the good of Pakistan.

Musharraf has ruled Pakistan since he took over in a coup in 1999. Since September 11, 2001, he has worked closely with the U.S. in the war on terror. Pakistan is an important U.S. ally, because it shares a border with Afghanistan, and many terrorists and militants are suspected to be living in Pakistan’s border regions. Musharraf received military aid from the U.S., and launched military attacks on the militant groups in the border regions.

Related Links

• Map of Pakistan
  Map of Pakistan from Geology.com, includes political map, global locator map, and satellite image. (Source: Geology.com)
• Pakistan’s Musharraf Steps Down
  Story covering Musharraf’s resignation, includes link to video of Musharraf making his announcement, as well as links to articles covering the current political situation in Pakistan. (Source: BBC, August 18, 2008)
• FACTBOX: Implications of Musharraf’s Resignation
  Bullet-pointed article breaking down the complicated political situation in Pakistan in the wake of Musharraf’s departure. (Source: Reuters, August 20, 2008)
• Musharraf Resignation Accepted
  Musharraf steps down from office, saying that it is in the best interest of the country. He was facing possible impeachment for misconduct and constitutional violations. (Source: United Press International, August 18, 2008)

On Sunday, August 17, U.S. swimmer Michael Phelps made history when he won his eighth gold medal at the Beijing Olympic Games. The previous record had been held since 1972, when U.S. swimmer Mark Spitz won seven gold medals in Munich, Germany. Including his medals from the 2004 games in Athens, Phelps has won 14 medals in all, 5 more than any other athlete in Olympic history.

In the lead-up to the Olympics, the 23-year old Phelps trained for up to 5 hours a day, at least 6 days a week, swimming about 50 miles a week. To keep up his energy, he eats 12,000 calories a day, compared to about 2,000–3,000 for the average adult male.

Phelps plans to swim again in the 2012 London Olympics, and says he will add some new events next time. Of the eight gold medals Phelps won this year, he set new world records in seven of them.

Related Links

• Beijing Olympics Venue Map
  Interactive map showing the locations of the different Olympic events in Beijing. Find the "Water Cube" for the site of Phelps's triumph. (Source: CNN, August 6, 2008)
• "Pool rat" Phelps Found Focus on Path to Gold
  After being diagnosed with ADHD and being told by a teacher that he would never amount to anything, Phelps was able to channel his energy in the pool. (Source: Reuters, August 21, 2008)
• Phelps Left Speechless by Acclaim
  Phelps reacts to the praise and acclaim he's received since breaking the record for number of gold medals won in a single Olympics. Includes links to video of Phelps. (Source: BBC, August 18, 2008)
• FACTBOX: Michael Phelps v Mark Spitz
  A comparison of Michael Phelps and Mark Spitz. Phelps beat Spitz's 1972 record of seven gold medals in a single Olympics. (Source: Reuters, August 17, 2008)

One aspect of perfect competition that is being changed by the Internet is how well informed buyers are. Before the advent of advertising, buyers depended on their own experience and recommendations or warnings from people they knew when choosing a product. During the 20th century, advertising by the sellers of a product or their competitors became the primary source of information for consumers. Although consumer advocacy organizations began publishing studies and ratings of many products, to obtain the information, buyers had to purchase their publications or go to the library to find them. Today, however, buyers have access to product information at their fingertips. Through the Web, they can obtain information about product specifications as well as performance or quality reviews. And they can get recommendations and warnings from consumers in distant parts of the country.

Source:

• Shelton, Ted. "Advertising: Now a Conversation." BusinessWeek. January 18, 2008. http://www.businessweek.com/print/technology/content/jan2008/tc20080117_870338.htm

Bill Gates and Microsoft

As a family foundation, the Bill and Melinda Gates Foundation addresses the problems the family believes to be most pressing in today's world. Bill Gates, his wife, Melinda French Gates, and his father, William H. Gates, Sr. all take an active part in the work of the foundation, providing the vision and setting the general strategy. Other professionals serve as chief executive officer and presidents of the different program areas. The foundation does not run any programs but funds programs that are implemented by other non-profit organizations.

Bill Gates and his family have decided to focus their efforts in three general areas: Global Development, Global Health, and the United States. The Global Development Program funds work is aimed at helping small farmers increase their production and market their crops. It helps provide banking services and insurance to people who do not have access to these. It also supports the spread of free Internet access, so people in poor regions can be better informed. The Global Health Program funds the distribution of medicines and vaccines that can be used to cure and prevent diseases that kill large numbers of people. Secondly, it supports research to develop new treatments, particularly those whose cost is low enough and whose implementation is easy enough to be used in poor nations with few hospitals and little infrastructure. The United States Program funds initiatives to improve high schools, cut back drop out rates, and increase access to college to more young people. It also supports the expansion of free access to computers and the Internet through public libraries. Finally, it provides funds to organizations in the foundation's home region, the Pacific Northwest, that help low-income families.

Sources:

• Bill and Melinda Gates Foundation. "Leadership." http://www.gatesfoundation.org/AboutUs/QuickFacts/LeadershipStaff/ (accessed May 16, 2008).
• Bill and Melinda Gates Foundation. "Global Development Program". http://www.gatesfoundation.org/GlobalDevelopment/ (accessed May 16, 2008).
• Bill and Melinda Gates Foundation. "Global Health Program." http://www.gatesfoundation.org/GlobalHealth/ (accessed May 16, 2008).
• Bill and Melinda Gates Foundation. "United States Program." http://www.gatesfoundation.org/UnitedStates/ (accessed May 16, 2008).

U.S. real GDP per capita

Since the Constitution was signed, the United States economy has grown by leaps and bounds. For example, using 2000 dollars for comparison, the real GDP per capita in 1790 was $916, around the start of the Civil War in 1861 it was $2,277, and in 2005 it was $37,232. You can calculate what the real GDP per capita in the U.S. was for each year in the nation's history by going to the Economic History Services Web site.

Sources:

• Johnston, Louis D. and Samuel H. Williamson. "The Annual Real and Nominal GDP for the United States, 1790–Present." Economic History Services, April 1, 2006. http://eh.net/hmit/gdp/.

Podcast

Listen to the acclaimed presidential historian Robert Dallek comment on the 2008 election. This month Dr. Dallek elaborate on this month's blog about why candidates try not to be too specific about their future policies while on the campaign trail.

NOTE: We will speak again with Dr. Dallek after the conventions are over and post a new podcast with his thoughts.

 
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2008 Election Blog

Commentary by Robert Dallek, Ph.D.
August 2008

Sitting on the Sidelines

Until the 1950s, vice presidents were principally viewed as officials of little consequence. Their jobs were to preside over the Senate, cast a tie-breaking vote (on the off-chance that the chamber had deadlocked), and perform ceremonial duties like representing the United States abroad at state functions. Nevertheless, Theodore Roosevelt had proved to be a highly popular and successful president after succeeding William McKinley, who was assassinated at the start of his second term in 1901. Calvin Coolidge, who replaced Warren G. Harding after he died of a heart attack in 1923, was also successful, as was Harry S. Truman, who served almost all of Franklin Roosevelt’s fourth term and won a second term with his election in 1948.

Most vice presidents, however, have hated the job. John Adams, the first vice president, called the position the most inconsequential office ever invented by the mind of man. Woodrow Wilson said that there is nothing to say about the vice presidency and after you’ve said that, there’s nothing more to say. Thomas Marshall, Wilson’s VP, is remembered only for saying, “What this country needs is a good five cent cigar.” Similarly, John Nance Garner, Franklin Roosevelt’s vice president from 1933–1941, is best known for his scathing comment, “This office isn’t worth a bowl of warm spit.”

Election Help

In the past, presidents have taken account of whether a vice president would make a competent president, but they have also considered whether a running mate could help them get elected, especially by increasing their chances of winning the VP nominee’s home state. The last time this calculation proved useful was in 1960, when Lyndon B. Johnson boosted John F. Kennedy to victory in Texas, which turned out to be crucial in one of the closest presidential elections in modern history.

Despite Johnson’s contribution to JFK’s electoral success, his reward was a distinctly marginal role in Kennedy’s presidency. Johnson, who was the most powerful Majority Leader in Senate history and a driven personality with little tolerance for being second banana, was frustrated at being shunted aside on everything from foreign policy to dealings with Congress. However, after he won the White House in his own right in 1964, he showed little inclination to give Hubert Humphrey a larger role than he himself had as vice president. Nevertheless, Humphrey was able to run for the presidency in 1968 after Johnson announced that he wouldn’t run again.

Higher Profile

What had changed? The fact that TR, Coolidge, and Truman had been able to move from the vice presidency to the presidency helped. But the turning point came in the fifties during Dwight Eisenhower’s presidency. A series of presidential illnesses that projected Vice President Richard Nixon into the public eye coupled with several trips abroad that gave him standing as a foreign policy expert in a time of Cold war tensions allowed him to become the first sitting vice president in the twentieth century to run for president.

Although Nixon lost to Kennedy in 1960, it gave future vice presidents the chance to present themselves as knowledgeable executives ready to assume the burdens of managing national problems, especially in foreign affairs, which had become the country’s greatest concern.

Since Nixon in the fifties, vice presidents have had a much higher profile than in earlier presidential administrations. Humphrey, Gerald Ford, who succeeded Nixon on his resignation in 1974 and ran for president in 1976, Walter Mondale, who served under Jimmy Carter from 1977 to 1981 and ran against Ronald Reagan in 1984, George H.W. Bush, in 1988, the first sitting vice president to win the White House since Martin Van Buren in 1836, and Al Gore who failed to succeed Bill Clinton in 2000 all make the point.

Increasing Influence

Gore’s service between 1993 and 2001 made him the most activist vice president to that point in the country’s history. Dick Cheney seems to have been even more important. Although it will be a number of years before the records of the current George W. Bush administration reveal the full extent of Cheney’s influence, it is likely that we will see him as the most powerful vice president in American history.

The vice presidency is no longer a low profile, largely inconsequential job, but a center of administration policymaking and a possible stepping stone to the White House.

Critical Thinking Questions

1. Make Inferences Why might many vice presidents have felt left out of the administrations in which they served?
2. Form and Support Opinions In what ways can a vice presidential candidate help the presidential candidate get elected?
3. Summarize Historically, what has the role of the vice president been and how has it changed?

Serbia: Bosnian Serb wartime president Radovan Karadzic was captured near Belgrade, Serbia, on July 22. In 1996, the UN tribunal indicted Karadzic for war crimes and genocide during the Bosnia war. Karadzic went into hiding before he faced trial, and has been living in disguise for 11 years.

Karadzic was living as a doctor of alternative medicine in a suburb of Belgrade, the capital of Serbia. He dressed in long, flowing robes, and wore a long beard and ponytail, and was unrecognizable to the Serbian citizens he once ruled.

During the Bosnia war, Karadzic's troops bombed the Bosnian capital of Sarajevo for 43 months, killing about 11,000 people. When news of his arrest reached Sarajevo, people rushed out into the streets to celebrate. Karadzic was transferred to The Hague to face trial July 30.

Related Links

• Karadzic Arrested in Serbia, Worked as Doctor
  Story covers Karadzic's arrest, his life in hiding, and the war crimes he is accused of. (Source: Reuters, July 22, 2008)
• Serbia Captures Fugitive Karadzic
  Article on the arrest, Karadzic's history and crimes. Includes links to audio and video footage of Karadzic in disguise and the people of Sarajevo celebrating in the streets. (Source: BBC, July 22, 2008)
• Map of Serbia
  Map from the UN, of Serbia. Includes a locator globe. (Source: UN, April 2007)

Other Issues in the Region

Regional Conflict

When the Soviet Union broke up in 1991, fifteen republics gained independence. Meanwhile, regions within some of the republics have broken off to form independent governments. Two key examples are the Abkhazia region in Georgia and the Chechnya region in Russia. Despite declaring independence in 1999, Abkhazia has not been recognized as an independent nation, and Georgia continues to try to bring it back into the fold. Since April 2008, however, tensions have risen as Russia has shown support for Abkhazia's separatist movement, shooting down a Georgian spy plane and bringing troops into the region.p>

• U.S. in Drive for Georgia-Abkhazia Peace Talks
  Fearing that tensions between Russia and Georgia could bring instability to the Caucasus region, the U.S. will bring Russia, Georgia, and the leaders of Abkhazia together for peace talks in Berlin. (Source: Reuters, July 24, 2008)

Soviet Union's Nuclear Legacy

Fifteen years ago, the end of the Cold War seemed to halt the nuclear showdown between the United States and the Soviet Union. In the years since, the biggest concern about Russia's and the former Soviet Republics' nuclear weapons was that they would fall into the hands of terrorists or rogue nations. The fear is not only that terrorists might detonate a nuclear bomb, but that they could also buy or steal radioactive material from Russian nuclear sites and use it to make a "dirty bomb." The idea of such a bomb would be to use conventional, or regular explosives to spread deadly radiation over a small area.

• Russia halts participation in NATO arms treaty
  Russia has pulled out of a NATO arms control treaty that many feel is a key to maintaining peace in Europe. Experts say that Russia withdrew from the treaty to express its frustration with the United States. (Source: NPR, July 14, 2007)

Economic Reform

Russia's transition from a command economy to a market economy has been a difficult one. When the Soviet Union collapsed in December 1991, the economy collapsed with it. Everything changed, from the laws and the currency of the republics, to the availability and distribution of goods. The years since have been tricky as Russia has moved from communism to capitalism. Shortages and rationing were the order of the day. A government-sponsored liberalization and privatization plan benefited mainly the rich and powerful, leaving average people to suffer.

• Medvedev's Russia Investment Pitch Under Pressure
  Russian President Dmitry Medvedev attempts to restore confidence in the Russian economy have been undermined by shake-ups at two natural resources firms. (Source: Reuters, July 25, 2008)

August 14

Encryption machines were not a practical tool in the jungles of the Pacific theater during World War II. Still, encoded messages needed to move from the battle lines to artillery positions, air bases, and ships. The solution to this dilemma was Native Americans who spoke the Navajo language.

"Navajo code talkers", as they became known, would use English code words translated into their language to relay messages. This method of encrypted communication was never cracked by the Japanese military. The code talkers risked their lives in some of the fiercest battles of the Pacific theater. They were never allowed to discuss the code and their jobs were classified information. The code talkers' role in World War II would not become public knowledge until much later.

For their bravery and service, President Ronald Reagan declared August 14 as National Navajo Code Talkers Day.

Related Links

• The Navajo Code
  A detailed history of the training and success of the Navajo code talkers. Includes some examples of the codes used during World War II.
• Code Talkers
  The son of a code talker maintains this extensive site. It provides information about the code itself, medals given to the code talkers, and articles written about them.

Iraq: The U.S. government has announced that it has greatly expanded its program to permit visas and ultimately U.S. citizenship for Iraqi citizens who work for the U.S. government. The program has been started for Iraqi citizens who helped make the American presence in Iraq possible by serving as translators and embassy project supervisors.

Many of the Iraqi employees have faced threats to their safety by anti-American groups in Iraq. They have faced death threats, kidnappings, and even house bombings.

The new program increases the number of Iraqis who can receive visas from 50 per year in 2006 and 500 per year in 2007 to 5,000 in each of the next 5 years. The program will also help the Iraqis make the transition from life in Iraq to life in the United States.

Related Links

• U.S. To Give Thousands of Iraqis Visas
  Article covers the new visa program. Includes details about how the Iraqi employees can bring their families to safety as well. (Source: Reuters, July 24, 2008)
• U.S. Expands Visa Program for Iraqi Allies
  Extensive coverage of the expanded visa program from the International Herald Tribune. (Source: International Herald Tribune, July 25, 2008)
• Map of Iraq
  Map of Iraq and the surrounding area from National Geographic. (Source: National Geographic, 2002)

Other Issues in the Region

Population Relocation

Expanding economies in the Middle East have led some countries in the region to rely on "guest workers" from other countries. While many guest workers are unskilled laborers, some take skilled positions in oil or high-tech industries. The presence of so many guest workers can lead to culture clashes. The workers face complicated employment laws, and sometimes live or work in unsafe conditions. They can also become the target of terrorists whose agenda includes removing foreign influences from their countries.

• Halliburton plans move to Dubai
  The major U.S. oil services company Halliburton announced this spring that it was moving its corporate headquarters from Texas to Dubai in the United Arab Emirates. Halliburton supplies equipment and workers to support oil production, as well as military infrastructure. It remains to be seen how this change will affect Middle Eastern oil nations such as Dubai and Saudi Arabia that already depend heavily on foreign oil workers. (Source: BBC, March 11, 2007)

Oil Wealth Fuels Change

Oil fuels the world’s industries and transportation—and its economies. Oil became a valuable strategic commodity, a resource so important that nations will go to war to ensure its steady supply. Southwest Asia contains much of the world’s oil supply, but oil prices rise and fall unpredictably. As a result, Southwest Asian countries cannot always plan how much revenue oil will bring in.

Economic development requires diversification—the development of multiple sectors of an economy, such as agriculture, mining, and technology. The countries of Southwest Asia are also investing oil profits in building and improving other infrastructure essentials, such as roads and telecommunications. Moreover, there is an awareness of the need to provide education, since economic development requires the knowledge and skills of a well-trained and well-informed workforce and citizenry.

• GE in $8 Billion Abu Dhabi Investment
  General Electric has teamed with a major Abu Dhabi investment firm to establish business projects, such as clean energy and water as well as oil and gas, to the Middle East and Africa. (Source: BBC, July 23, 2008)

Conflict over Land

Conflicts between Jews and Arabs over land controlled by Israel continue to disrupt life in the region. The Palestinian people living in Israel are seeking their own autonomous nation. The signing of the 1993 Oslo Accords between Israel and the Palestinians suggested that the two sides could achieve a permanent peace. But by the early 21st century, violence had spiked once again. In August of last year, Israel pulled all of its settlers out of the Gaza Strip region. Israel occupied the Gaza Strip in 1967, and since then it has been a major point of contention between Israelis and the Palestinians who live there and insist the land is theirs. In January of 2006, the Hamas Party was elected into power in the Palestinian Territories.

• West Bank Settlement Plan Condemned
  Reports that Israel is planning to develop a new settlement in the West Bank have drawn criticism from the international community. (Source: BBC, July 25, 2008)

How high will prices go at the pump?

At an average price of about $4 per gallon, Americans are paying more for gasoline than ever before. That's up from an average of $2.85 in 2007. The prices are causing people around the country to limit the amount of driving they do. Some companies are even going to a four-day workweek to help employees save money on their commute.

But why exactly, are gas prices so high right now? The answer is complicated. Supply and demand is an important factor. When there isn't enough gasoline available for everyone who wants to buy it, the price rises. And with the economies of countries like China and India growing rapidly, the demand for oil and gasoline is growing as well.

Another factor that affects the price of gas is the Organization of Petroleum Exporting Countries, or OPEC. OPEC is a group of 13 countries that controls more than 40 percent of the world's oil, and holds 65 percent of the world's oil reserves. OPEC sets the price of oil by deciding how much of it they will produce. When they want the price of oil to rise, they simply produce less of it. Since they don't have any major competition, they are free to set the price.

Other factors that affect the price of gas are high taxes, the expensive process of refining crude oil in gasoline, and unexpected events like natural disasters. Hurricane Katrina made it difficult to deliver oil and caused prices to jump in September of 2005.

Many Americans feel that it is necessary for the United States to become less dependent on oil imported from other countries. Some believe we should drill for oil off the coastlines of some states and in the Arctic National Wildlife Refuge in Alaska. Many experts believe, however, that such drilling would have little or no effect on the price of gasoline, and would be bad for the environment.

Related Links

• How Gas Prices Work
  Thorough, well-documented article on the factors that affect the price of gasoline. (Source: HowStuffWorks.com, May, 2008)
• Arctic's Oil Could Meet World Demand for Three Years
  The U.S. Geological Survey has predicted that the Arctic Circle contains about 90 billion barrels of oil. The area is growing more accessible as global warming melts the ice in the Arctic. (Source: Reuters, July 24, 2008)
• Exploring Realities of Offshore Oil Drilling
  Story explores the environmental effects of offshore oil drilling, as well as how much oil we can expect to find. (Source: NPR, July 18, 2008)
• For Commuters, Economic Woes Pile Up
  Article covers how the high gas prices and other economic problems are affecting the American worker. (Source: MSNBC, July 23, 2008)

Critical Thinking Questions

1. Causes and Effects What led to the record gasoline prices that we are currently experiencing?
2. Summarize In your own words, explain how OPEC is able to control the price of oil around the world.
3. Form and Support Opinions Do you think that the U.S. should drill for oil offshore and in the Arctic National Wildlife Refuge? Why or why not?

On July 21, Salim Ahmed Hamdan went on trial at Guantánamo Bay Naval Base in Cuba. Hamdan is the former driver of al Qaeda leader Osama bin Laden. He is charged with conspiracy and providing material support for terrorism. Hamdan has pleaded not guilty.

This is the first trial of the military tribunal that was set up over six years ago when the U.S. opened the Guantánamo Bay prison camp for terrorism suspects. The prison has been surrounded by controversy for the alleged torture of suspects and for the original ruling of Congress that suspects could be held indefinitely without a trial. On June 12, 2008, the U.S. Supreme Court ruled that Guantánamo prisoners have the right to appeal their detention in court.

The judge in the case has ruled that some of the confessions that Hamdan made during the six years he has been held are not admissible as evidence, because they were made under duress. The judge also ruled, however, that interrogators had not made a "sinister attempt at coercion," and so some statements could be used as evidence. If convicted, Hamdan could face a life sentence.

Related Links

• Map of Guantánamo Bay Naval Base
  Map of Cuba, showing the U.S. naval base at Guantánamo. Zoom out for overview. (Source: MSN Encarta)
• First U.S. War Crime Trial Starts at Guantánamo
  Story covers opening of the trial, and places it in context. (Source: Reuters, July 21, 2008)
• Bin Laden Driver 'Knew 9/11 Aim'
  BBC story covers the first few days of the trial. Includes links to related stories. (Source: BBC, July 23, 2008)
• Profile: Guantánamo Bay
  Information on the naval base at Guantánamo Bay. (Source: BBC, October 17, 2008)

Using radar technology, a group of German archaeologists believe they have discovered the hippodrome, the chariot racetrack that has been lost since Emperor Theodosius banned the Olympic Games more than 1,600 years ago. The hippodrome, the largest structure of ancient Olympia, was about one kilometer long, with V-shaped starting stalls, sharp turns, and altars.

The chariot and horse races that were held at the hippodrome were the most prestigious of the events at the ancient Olympics. Wealthy horse owners paid professional riders to race for them, with the prize going to the owner of the winning horse or chariot.

The location of the lost hippodrome is one of the last mysteries of Olympia. Archaeologists have been excavating the site of the ancient Olympic Games continuously since 1875. The researchers made their new find using geomagnetic technology to trace structural features buried about seven feet under the soil.

Related Links

• Ancient Olympic Chariot Racetrack Located?
  Story from National Geographic covers the discovery of the site, gives details about the history of the games and the location. (Source: National Geographic, July 24, 2008)
• Germans Find Olympic Course Where Nero Raced Chariot
  Story on the discovery of the hippodrome, includes information about archaeologists' work and discovery, as well the Roman Emperor Nero's role in the Olympic Games. (Source: Reuters, July 23, 2008)
• Horse Racecourse in Ancient Olympia Discovered After 1600 Years
  Covers the discovery, includes image of the site with an outline of the hippodrome's location. (Source: Science Daily, July 21, 2008)
• Map of Olympia, Greece
  Map of Greece from Encarta. Zoom in to see location of Olympia. (Source: MSN Encarta)