1. Conditions - inflation caused by Vietnam
- a. LBJ paid for war by printing $ and debt instead of taxes
- b. Goal - "Peace with Prosperity"
- c. Results - mixed success
2. Nixonomics or Gradualism (1969-70)
3. Milton Friedman Chicago economist - Republican model
- a. Social programs of the Great Society + the Vietnam War hurt the federal budget
- b. food prices increased worldwide due to crop failures worldwide (supply side shock)
- c. increase taxes through tax reform - 1969
- d. cut spending/tighten $ supply to control prices
- e. Results - Stagflation - high unemployment and inflation at the same time - impossible
- 1. prices up
- 2. salaries down
- 3. standard of living down worst decline since 1900
- 4. led to high unemployment - recession
- 5. cities hurt
- 6. home mortgages difficult
- 7. factories closed
- 8. Penn-Central RR - worst bankruptcy in history
- a. 1970 - Amtrak - bailout
- b. Congress approved
- c. Nixon did not have the votes to stop it so he signed
- e. 1970 Economic Stabilization Act
- 1. Congress gave Pres. power to impose price and wage controls
- 2. President opposed govt. interference...yet...
4. The Great Nixon Turnaround - 3 phase plan
- a. Nixon switched to Keynes philosophy $23.2 billion budget - largest ever to that point
- b. Phase 1 - 8/71
- 1. 90 day wage and price freeze and aid to businesses
- 2. lower taxes
- 3. lower interest rates to increase spending
- 4. public reaction
- a. business and consumers supported
- b. unions opposed - George Meany
- 5. Results
- a. lower inflation rate
- b. 1971 - 1st trade deficit in 80 years
- 1. New Sec. of Treasury - John Connally (D) devalued dollar
- 2. raised tariffs
- 3. gold crisis - 8/71 - 35$/ounce
- Gold standard ended aid for purchasing power of US goods
- c. inner city unemployment not helped
- c. Phase 2 - 11/71
- 1. creates wage and price controls limiting prices, rents, and salary increases
- 2. Cost of Living Council and Price Commission
- created to set controls and guidelines
- 3. Results - stagflation slowed inflation and unemployment down
- 4. Goal
- 2-5% - inflation
- 6% - unemployment
- 5. Problems
- 3/72 - AFL-CIO strike
- 6. Reelection led Nixon to return to Republican approach
- d. Phase 3 - 1/73
- a. price and wage controls abolished
- b. voluntary controls established - did not work
- c. Stagflation returns
- 1973-1974 Oil Crisis (supply side shock)
- inflation at worst level since Truman - 10%
1. Goals and Methods
- a. power of purse - refusing to spend
- b. keep everyone happy and win reelection
2. Environment - Congressional proposal signed by Nixon
- a. Rachel Carson - Silent Spring - 1962
- raised the issue of pesticide use
- industries use of new chemicals without understanding the impact first
- b. National Environmental Policy Act - 1969
- c. cigarette ad ban
- d. April 1970 - first Earth Day
- nationwide cleanup
- rallies and demonstrations
- Sierra Club concern for development of wild
- result - water/air pollution acts in 1970 strengthened acts passed under LBJ
- e. EPA - created 1970 - cornerstone of enforcement
- 1. liberals forced him to sign
- made a big production out of supporting something he actually opposed
- 2. William Ruckelshaus - appointed head of EPA
- the man Nixon chose to run the EPA did not even support it
- 3. dozens of suits - only filed when public outcry demanded
- f. Don't enforce - refused to spend money given by Congress
- g. The Closing Circle - 1971 - Barry Commoner
- found evidence that pollution was rising 10x faster than either
- the population or
- the economy
- Major sources of pollution
- new products
- new methods of production
- packaging that didn't deteriorate over time
- throw away society
3a. OSHA(1970) Occupational Safety and Health Administration
- 1. Inspect and maintain safe conditions in the workplace
- 2. Benign Neglect
3b. Ralph Nadar -Consumer Protection Safety Act -test and suits
- 1. Unsafe At Any Speed - targeted the auto industry
- 2. Nadar's example led hundreds to take up public interest law
- 3. ran under the Green Party label for President in 1996
- 4. Nixon refused to spend money given by Congress - don't enforce - appear to support
4. Family Assistance Plan - Welfare change
- written by Daniel Moynihan (D) - head of Council on Urban Affairs
- a. consolidated aid instead of piecemeal
- family of 4 - $1600/ yr.+ $860 food stamps - unemployed
- b. Working poor could get welfare till total = $3920 if capable then required to work
- Both 1 + 2 were desired by liberals
- c. would have been a big increase for the South
- d. give responsibility to state - desired by conservatives
- e. (House - yes / Senate - no) conservatives and liberals opposed it
5. Support given to programs with public support even if liberal
- a. soc sec benefits increased so did social security taxes
- b. low income housing increased
- c. minimum wage went up
6. 26th Amendment - lowered voting age to 18
- a. ratified 6/71
- b. 25 million new voters
- c. attempt to gain new Republican voters failed to take into account Vietnam
1. Southern Strategy - must win southern votes to stay President
- a. cater to Southern interests without losing Northern vote
- b. Agnew role in the Southern Strategy was to
- attack liberals, commies, and hippies
- while defending traditional American values
- c. Nixon focused on social tension and violence created by
- civil rights protesters
- Vietnam war protesters
- the women's movement
- (based on poll of key issues in the South)
- d. areas to criticize liberals especially the Supreme Court, while doing little himself
- e. blamed liberals, drug using hippies and commies for
- the decline in patriotism, traditional values and the American family
- as well as the rising crime rate
2. Supreme Court - key evil
- a. Criticized the Warren Ct. as too liberal towards criminals and in civil rights
- b. 1969 appointed Warren Burger as chief justice
- attempted to make the court conservative
- c. goal - strict interpretation of the Constitution
- 1. Haynesworth and Carswell rejected as too racist among other issues
- looked good to white southerners
- 2. Blackmun, Powell, and William Rehnquist also appointed
- d. Succeeded in making the court more conservative while winning Southern support
- e. Court does not become truly conservative until R. Reagan
3. Civil Rights Goal - win South through benign neglect
- a. accused Supreme Court of being too liberal and overreacting to segregation
- b. Secretary of HEW - Robert Finch
- was withholding funds when token integration existed as in Mississippi
- 1968 - South - 80% of blacks still attended all black schools
- 1969 - Nixon refused to withhold funds in an attempt to win white southern support
- Robert Finch resigned
- 10/69 Alexander v. Holmes - forced Miss. to integrate
- Nixon lost
- still helped his image with some southern whites
- they figured he at least tried
- c. 1970 - Voting Rights Act of 1965 - renewal vetoed / overridden
- said problem no longer existed
- d. 1970 - US Commission on Civil Rights reports major breakdown in enforcement
- e. US Sup Ct. - Swann v. Charlotte - 1971 - forced busing - Nixon opposed lost
- 1. North and South protested
- 2. busing required if necessary for integration
- Nixon defined "if" as never
- 3. Nixon blocked enforcement
- handed the problem to Congress who delayed till after election - hot
- 4. Congress agreed with Nixon - liberal filibuster killed law to block busing
- 5. thus leaving it to the Courts who have no ability to enforce their decisions
- 6. 9/74 - violence in Boston and across the North
- 7. Miligan v. Bradley - busing inner city to suburbs not mandatory
- partial victory for Nixon
- f. Results
- halt the gains of the civil rights movement
- begin to slowly erode gains of the 60s
- Some gains still made despite Nixon
- 1972 - South - 20% of blacks attended all black schools
- federal employment of blacks increased
- construction jobs to minorities increased
4. Law and Order and Crime
- a. Nixon declared war on the supreme court for being soft on criminals
- b. Warren Court - Nixon defines the problem
- 1. Gideon v. Wainwright - 1963 - right to lawyer during trial
- 2. Escobido v. Illinois - 1964 - right to lawyer during questioning (murder)
- 3. Miranda v. Arizona - 1966 - right to have rights read (rape)
- 4. Furman v. Georgia - 1972 - death penalty
- 600- prisoners overturned
- cruel and unusual punishment as applied (unevenly) was unconstitutional
- this decision came even after Nixon changes court
- c. Omnibus Crime Bill - 1970
- 1. $1 billion to fight crime
- 2. fastest growing part of govt.
- 3. new laws - drugs, anti-organized crime, preventive detention
- increase in wiretaps for search warrant situations
- 4. Result - failure - crime rate increased
- d. two cases showed conservative influence of Nixon on court
- 1. 1972 sup ct unanimous decision only req. in fed cases except death penalty
- 2. Gregg v. Georgia - 1976
- stated that death penalty itself was acceptable
- two stage (conviction / punishment) trial approved bringing
- back the death penalty
5. Family and Patriotism
- a. Prayer, Patriotism and the family popular issues in south
- b. Engel v. Vitale - 1962 - compulsory prayer in schools
- 1. Nixon supported prayer in schools quietly
- 2. promoted patriotism - flag pins etc
- while opposing court decisions which supported symbolic speech
- c. Nixon opposed NOW and its goals as a threat to the traditional family structure
6. Nixon's Appeal to Middle America
- a. Disturbed by the attitudes of young people
- believed the antiwar protests and the ideals of the counterculture posed a threat to society
- b. sought support of the Silent Majority
- most came from the middle class
- Agnew led the cheerleading for this group
1. Indian Movement
- a. Most deprived minority
- unemployment rate 10x the national average
- life expectancy low
- suicide rate 100x normal
- alcoholism rate high
- b. 1953 Termination Policy (Ike/Nixon)
- cut federal aid to Indian reservations
- designed to make them more self-sufficient
- forced them into the inner city slums (1/3 - 1961)
- confiscated valuable Indian lands
- c. 1969 - Alcatraz occupied
- Indians turned to militant protests
- protest government seisure of Indian lands and other issues
- d. 1970 - AIM - American Indian Movement
- organized by young urban Indians
- demanded a role in forming federal Indian Policy
- argued that the Bureau of Indian Affairs created dependency
- organized protests - using tactics of the civil rights movement
- especially the black power movement (Red Power)
- e. Wounded Knee, South Dakota taken over
- standoff with police gained national attention - little support
- Sioux Reservation
- f. Lawsuits - won huge settlements against the government
- land returned in some cases
- reparations paid in others - cases continue today
- g. Nixon canceled the termination policy of the 1950's
- which had aimed at forcing the Indians to assimilate
- Make Nixon appear more moderate
2. The Hispanic Movement
- a. fastest growing minority group in the 1970s
- b. most are of Mexican descent
- c. Hispanice Movement strongest in the barrios
- d. Cesar Chavez - 1962 - United Farm Workers (1973)
- e. Chicano Renaissance - art, music, literature
- f. La Raza Unida - 1970 - new political party
3. Youth in the 1960s
- baby boomers - grew up in the prosperous 50s
- not worried about jobs
- security gave them the freedom to search for alternate lifestyles
- challenged the dominant values of the 1950s
- money
- status
- power
- criticized their parents for
- war
- poverty
- racism
- New Left Historians
- reflect cynicism of the baby boomer generation
- blamed us for the Cold War
- questioned the use of the Bomb by Truman
- Rock and Roll music played a key role in the protest
4. The Counterculture
- Counterculture - a culture with values opposed to those of the established culture
- love and freedom
- dress - long hair, minshirts, bell bottoms, love beads, peace symbols, etc.
- Woodstock - 1969 - 500,000 - Rock concert
- Dropping Out
- Drugs
1. How would we expect him to run his foreign policy?
- a. William P. Rogers - Sec. of State (1969-1973) an administrator
- b. Henry Kissinger
- 1. National Security Advisor (1969-1973)
- 2. Sec. of State (1973-1977)
- a. Nazi Germany escapee
- b. Harvard Professor - hero - Prince Metternich - balance of power
- c. Containment was out of date
- Since world has more than two superpowers
- Hoped that the five centers of power could maintain the balance
- 1. Japan
- 2. Western Europe
- 3. China
- 4.USSR
- 5. US
2. Philosophy
- a. Realpolitik
- a. practicality, reality, what benefits the US the most?
- base decisions soley on issues of power
- b. ignore ideology, morality, anti-communism
- b. Machiavelli - the end justifies the means
- How does Vietnam fit as an example of this?
- c. Critics - leading critic - Ronald Reagan
- a. called for Kissinger's resignation - selling US out
- b. Liberal critics pointed to lack of morality
3. Goals - foreign policy would make him great President
- a. Reverse militant anti-communism
- b. Military preparedness combined with reduced risk of nuclear war
- c. Limit nuclear arms
- d. Ease tensions - China and the USSR
- e. Reduce global commitments - save money avoid another Vietnam
1. Background
- a. 1949 - Mao Zedong - Chairman - People's Republic of China
- Chiang Kai-shek - Taiwan - Nationalist China
- b. US recognition of Chiang as ruler despite dictatorship and corruption
- c. Taiwan in UN - PRC does not exist - no American had been there since
- d. 1969 - Border war - USSR vs. China - pushed China toward US
- 1. Fear of monolithic communism had faded
- China and Russia began to compete with each other
- 2. PRC - 1 billion population = largest market in the world = 1/4 of world total
- 3. China was a nuclear power in its own right
- e. Critics - Ronald Reagan
- 1. PRC = illegal, undemocratic, immoral
- 2. to change policy betrays Chiang
- (evil sellout deserving impeachment)
2. Policy
- a. 1969 - relaxed embargo on imported goods from China
- b. 4/71 - Ping Pong Diplomacy
- Kissinger and Premier Chou En-lai - secret meeting
- c. 7/71 - Kissinger to China (secret)
- 1. discussed Vietnam
- 2. arranged Nixon trip
- 3. 10/71 - Secret agreement
- gradually withdraw US troops from Taiwan
- US dropped opposition to UN and China replaced Taiwan
- d. 1971 - Export non-strategic goods begins with a signup, security check and clearance
- e. 2/72 - Nixon to China - 1st US President to go
- Image as Peacekeeper
- Shanghai Communique - trade, scientific and cultural exchanges
- 1st company to go to China - Coca Cola
- f. Early 1973 - Diplomatic relations established liaison offices
- g. Taiwan still US ally, still in UN - unhappy
- h. Counterbalance to USSR - play two sides against each other
1. Background
- a. reduction in tensions between superpowers
- 1. Outer Space Treaty - banned weapons and military bases in space
- 2. 3/69 - Nuclear Non - Proliferation Treaty ratified (signed 7/68)
- b. Apollo XI - 7/69
- 1. Total Cost - $25 Billion
- 2. Neil Armstrong and Buzz Aldrin - Eagle
- 3. critics - expensive - hurt domestic programs
- 4. 3200 new products - info acquired
- 5. Cold War victory
- c. 7/69 - Nixon visited Romania 1st President to go behind the Iron Curtain
- d. Detente depended on arms negotiations - position of strength
- 1. ABM - $8 billion (US) - 2nd strike capability as a deterrent to a 1st strike
- 2. 10/69 - passed by 1 vote
- e. MIRV - (multiple independent reentry vehicle) tested secretly by both countries
- f. 2/72 - Reaction to improved Sino-American relations opened window of opportunity
2. Salt I
- a. 4/70 - negotiations began in Helsinki, Finland
- b. 5/72 - Moscow Summit- 2 accords signed by Brezhnev and Nixon
- 1. limit each nation to 2 (200 missiles) ABM sites verified by satellites
- 2. 5 year freeze on the number of missiles regardless of location
- limited ICBMs not warheads
- it did not limit the development of nuclear weapons other than missiles
- such as bombers
- 3. Ratified by the Senate - Who was "ahead"?
- 4. Symbolic first step
- c. USSR and US hoped this would ease economic trouble which both were experiencing
- d. Instead a new and much more expensive arms race began
- e. Image during an election year - Nixon the Peacekeeper
3. Moscow Summit - 5/72
- a. increased trade, science, culture, sold Russia corn and wheat
- b. Pepsi 1st company in Russia
4. Washington Summit - 6/73
- a. relations continued to be friendly - Watergate slowed progress
1. 6 Day War - 6/67 - LBJ - preemptive attack by Israel
- a. Israeli preemptive attack against Egypt, Syria, Jordan - quick victory - gained territory
- 1. West Bank - Jordan
- 2. Gaza Strip - Egypt
- 3. Golan Heights - Syria
- 4. Sinai Peninsula - Egypt
- b. PLO - Arafat - trained terrorists began attacks against Israel
- trained, equipped, and hidden by the Arab nations
- c. Egypt aligned closer to USSR - advisors sent to Egypt
- d. 1970 - Egyptian army feared Soviet takeover - Anwar el-Sadat assassinated Nasser
- e. 7/72 - Sadat dismissed Soviet advisers began to move closer to US
- (USSR - refused to give advanced weapons)
- f. 8/73 - Egypt received $600 million in aid from Saudi Arabia
- g. US relations improving in Middle East - surprise awaited
2. 10/73 - Yom Kippur War
- a. Egypt - Syria attack Israel by surprise seeking return of lost lands
- b. Israel near defeat was saved by new shipments of US weapons - heavy loses
- c. Israel drove within 60 mi. of Cairo
- d. Egypt turned to USSR - they threatened to send troops and we went on alert
- USSR sent new weapons, however they were not as quick to arrive as US aid
- e. Hot Line used to avert confrontation - Detente tested and survived
- no cooperation occurred until we started winning
- f. 1/74 - Cease - fire - Kissinger used Shuttle Diplomacy
- and USSR cooperation to bring in a UN peacekeeping force
- g. 5/74 - troop withdrawal agreement
3. OPEC Oil Embargo 10/73 - 3/74
- a. Punished US for its support of Israel's refusal to return the occupied territories
- Oil prices increased from $3/barrel to $12/barrel
- b. US got 40% of its oil from OPEC - only 6% from Middle East
- (Organization of Petroleum Exporting Countries founded in 1960)
- in 1973 (they controlled 2/3 of the world's oil)
- Libyan leader - Muammar Qaddafi - "The time has come for us to deal America a strong slap in its cool, arrogant face."
- c. impact in US immediate
- caused long lines for gas - increased prices
- helped fuel double-digit inflation and trade imbalance
- c. Energy Crisis occurred at home - Nixon took various actions - little impact short-term
- 1. lower thermostat
- 2. speed limits - 55
- 3. car pools
- 4. Alaskan pipeline
- 5. loosened stripmining restrictions
- 6. suggested need for plan to achieve energy independence
- 7. daylight savings time
1. 69 - Nelson Rockefeller visit to LA led to riot
- Vietnam had eroded aid and popularity
2. Chile and Containment
- 1. 1970 - Salvador Allende - Socialist elected in Chile
- 2. 1970 - Bolivia and Peru - nationalized US property
- Anaconda Copper
- ITT
- 3. 1973
- cut off all aid to Chile
- CIA sent $10 million to anti-Allende forces in the military
- CIA ordered destabilization of Chile
- strikes
- sabotage
- disorder
- CIA sponsored assassination of Allende
- replacement - Augusto Pinochet
- soon the most repressive dictator in LA
- (pro-US)
- 4. uncovered by Congress (CIA activities were illegal)
- led to Civilian Oversight Board to watch CIA
- investigation exposed our prior activities in Guatemala, Iran, Cuba and elsewhere
- worldwide anti-American protests followed
3. Angola - 1974
- US supported violent civil war instead of peace to prevent spread of communism
- a. Portuguese colony since 1574
- b. Civil war broke out in Feb. 1961 - guerrilla war aided by USSR
- 1. Portugal sent 80,000 troops
- 2. South Africa wanted a buffer from other African states
- 3. US was ignoring Africa while USSR was trying to dominate
- c. 4/74 Portugal gave up Mozambique and Angola 11/74
- despite $436 million in US aid to maintain white rule
- d. Angola had oil and diamonds - US wanted influence - domino theory
- e. South Africa invaded - 10/74
- f. Marxist guerrillas got Soviet aid and Cuban troops - balance of power
- g. CIA sided with South Africa and their guerrilla allies
- h. 1/76 - Congress cut off aid and South Africa withdrew
- the Marxists then won - compared to Vietnam
- i. They eventually became neutral in the cold war dealing with both sides