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he last quarter of the 20th century was shaped by three
fundamental challenges that arose in the late 1960s
and early 1970s. The first was a crisis of political
leadership. Public cynicism toward politicians intensified,
political party discipline declined, and lobbies and
special interest groups grew in power.
The second challenge involved wrenching economic transformations.
Economic growth slowed, productivity flagged, inflation
soared, family income stagnated, and major industries
faltered in the face of foreign competition.
The third challenge involved growing uncertainty over
America's proper role in the world. A major challenge
facing policymakers was how to preserve the nation's
international prestige and influence in the face of
mounting public opposition to direct overseas interventions.
Background
In the late 1970s, many academic authorities suggested
that the United States was in decline, that such societies
as Japan and West Germany were growing faster and were
beginning to dominate cutting-edge industries such as
consumer electronics and luxury automobiles. As the
21st century began, the United States had reasserted
its economic, military, and cultural supremacy. It was
the world's sole superpower. It dominated not
only the Internet and computer software and hardware,
but also film and television production. Still, the
United States was also faced by new threats, especially
from terrorist organizations.
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