9.5 Challenges of the 21st Century

New Threats and Foreign Policy

The 9/11 attacks (2001) reshaped U.S. foreign policy, leading to the War on Terror, invasions of Afghanistan and Iraq, and the creation of the Department of Homeland Security and the PATRIOT Act. Debates over surveillance, civil liberties, and America's role as a global power intensified as the U.S. confronted terrorism, globalization, and rising competitors like China.

Economic Shifts and Crisis

Rapid technological change and globalization transformed the economy, widening income inequality and shifting jobs overseas. The 2008 financial crisis, triggered by risky mortgage lending and deregulation, caused the Great Recession, prompting government bailouts (TARP) and renewed debate over the role of government in regulating markets.

Demographic and Political Change

Immigration, especially from Latin America and Asia, continued reshaping U.S. demographics, fueling debates over immigration policy. Political polarization deepened over issues like healthcare (Affordable Care Act), climate change, gun control, and social/cultural issues, reflecting ongoing tension between traditional values and demands for social change in an increasingly diverse society.

Key terms

War on Terror

U.S.-led global campaign against terrorism after 9/11, including wars in Afghanistan and Iraq.

PATRIOT Act

2001 law expanding government surveillance and law enforcement powers to combat terrorism.

2008 Financial Crisis

Economic collapse caused by risky mortgage lending and deregulation, leading to the Great Recession.

Affordable Care Act (2010)

Healthcare reform law expanding insurance coverage; sparked major political debate over government's role in healthcare.

Political polarization

Growing division between political parties over issues like immigration, climate change, and social policy in the 21st century.

Try an AP-style question

After the September 11, 2001 attacks, the U.S. launched…

1. an invasion of Iran
2. a war with North Korea
3. wars in Afghanistan and Iraq
4. a war with Russia