Contemporary Politics

During the past 30 years, Presidents from both parties have struggled to balance the ideals of the Great Society with national security concerns. Every American leader from Johnson to G.W. Bush has found it difficult to provide both “guns” and “butter.” During the 1970s high federal spending on Vietnam and the Great Society resulted in high inflation, precisely at the moment when American industrial productivity was declining. The resulting “stagflation” created a complex economic problem that proved unresponsive to most traditional methods of regulating the economy.

Richard Nixon: Domestic Policy

•Affirmative Action

•Environmental Programs

•Worker/Consumer Protections

•OSHA

•Women’s Rights (Supported ERA)

•Funding for Arts

Nixon’s Economic ProblemsStagflation: Recession + High Inflation

Causes

Declining Productivity

Increased Global Comp.

Trade Deficits

High Labor Costs

High Gov Spending

High Energy Costs

Richard Nixon: Foreign Policy

Nixon & Kissinger

Détente: “Easing of Tensions”

SALT I Treaty: Arms Limits

The Watergate Scandal•Nixon made Enemies Lists•Nixon’s Committee to Re-elect the President (CREEP) broke into the Democratic National Headquarters in the Watergate office building.•There were tape recordings of Nixon ordering break-in.

Articles of Impeachment

•Abuse of Power

•Obstruction of Justice

•Contempt of Congress

Only President to Resign Office!

Gerald Ford: Domestic Policy

-Issued Nixon a full pardon

-Popularity dropped

Jimmy Carter: Domestic PolicyDomestic Policy

•Washington Outsider

•Unpopular due to economic problems

Jimmy Carter: Economic PolicyContinued Stagflation

Loosening credit caused inflation

Tightening credit caused recession\

High gas prices made him seek alternative fuel sources

Jimmy Carter: Foreign Policy

-Human Rights Emphasis

-Iranian Hostage Crisis

-Camp David Accords: Brokered a peace between Egypt and Israel

The Election of 1980

Reagan: Domestic Policy•Washington Outsider…

•Small Government… attacked welfare, social spending, business & environmental regulations

Reagan: Economic Policy•Supply-side Economics: tax cuts for businesses and wealthy who would put that money back into their business and expand the economy

•Increased Defense Spending

•Deregulation

-1980-1984: Recession

-1984-1987: Expansion

Ronald Reagan: Foreign Policy•Reagan Doctrine: U.S. will aid “freedom fighters” trying to overthrow communism

•“Evil Empire:” Bipolarism

•Iran-Contra Scandal

The Election of 1984