A CRISIS IN CONFIDENCE A CRISIS IN CONFIDENCE 1969-19801969-1980

America: Past and Present

Chapter 31

Nixon in PowerNixon in Power

• Apparent success in first term

• Triumphs in foreign affairs

• Nixon cuts himself off from Congress, his own cabinet, and the nation

Reshaping the Great Reshaping the Great SocietySociety

• Nixon and the Great Society• more efficient administration• shift responsibility to the states• shift school desegregation to the courts

• Shift to conservative Supreme Court• appointment of conservatives and

moderates• Burger Court similar to Warren Court

• Pace of change slows but continues

NixonomicsNixonomics

• Nixon and inflation• inflation spurred by Vietnam • federal spending cuts• interest rates forced up

• 1970--Nixon-induced recession

• 1971--wage and price controls

• Economy revives

Building a Republican Building a Republican MajorityMajority

• Nixon obsessed about reelection

• Inactive on desegregation to win South

• Attack cultural revolution to win “middle America”

• Democrats try to retain majority by joining crusade against drugs, crime

In Search of DIn Search of Déétentetente

• Foreign-policy assumptions• Cold War to be managed, not won• America must make a strategic retreat• improve relations with China to neutralize

Russia

• February 1972--Nixon visits China

In Search of DIn Search of Déétente:tente:Outcome of China VisitOutcome of China Visit

• February 1972--U.S. recognition of Communist China set in motion

• May 1972--Russians sign SALT I

• Apparent mutual desire to reduce Cold War tensions

Ending the Vietnam WarEnding the Vietnam War

• Nixon’s plan - VIETNAMIZATION• gradual reduction of American troops• intensify American bombing • hard line at the peace talks

• 1970--invasion of Cambodia

• January, 1973--peace talks conclude with disguised American surrender

The Crisis of DemocracyThe Crisis of Democracy

• June, 1972--Nixon agents arrested for attempted Watergate break-in

• Nixon stonewalled the press about White House involvement• even instructed aides to lie under oath

The Election of 1972The Election of 1972

• Nixon’s opponents• American Independent George Wallace--

shot and disabled, followers vote for Nixon• Democrat George McGovern--nomination

alienates middle class; Staunch Liberal

• Nixon landslide suggests new alignment• middle class shifting to Republican

conservatism• African Americans, Jews, the poor remain

strongly Democratic

The Watergate ScandalThe Watergate Scandal• Summer 1973--Senate investigation

• damaging Senate hearings on cover-up• White House tapes discovered

• Summer 1974• Nixon must relinquish tapes; “smoking gun”

of investigation• House Judiciary committee recommends

impeachment

• August 9, 1974--Nixon resigns

The Watergate Scandal: The Watergate Scandal: ConsequencesConsequences

• Demonstrated growing power of the executive branch

• Illustrates vitality of institutions• the press• the federal judiciary• Congress

• Encourages more cynicism about Washington and politics (politicians)

Energy and the Energy and the EconomyEconomy

• U.S. way of life based on cheap energy

• 1970s energy crisis sparks inflation

The October WarThe October War

• October, 1973--Yom Kippur War pits Egypt, Syria against Israel

• U.S. supplies weapons to Israel

• Arab oil nations retaliate with boycott• prices of gasoline and home heating fuel

rose sharply

The Oil ShocksThe Oil Shocks

• Effects of soaring oil prices • consumer spending plunges• recession by 1974• inflation persists through 1970s

• Tax cut aids consumer spending and encourages recovery

• 1979--Iranian Revolution causes second surge in oil prices

The Oil Shocks: Price Increases The Oil Shocks: Price Increases of Crude Oil and Gasoline, of Crude Oil and Gasoline, 1973-19851973-1985

The Search for an The Search for an Energy PolicyEnergy Policy

• Ford tries to encourage production

• Carter tries to encourage conservation

• Congressional legislation to• encourage production, e.g. Alaska pipeline• encourage conservation, e.g. gas rationing

• Energy problem persists

The Great InflationThe Great Inflation

• Oil prices drive inflation• price of goods soars• real income declines as buying power

diminishes due to inflation

• Attempted government controls result in record high interest rates (pull $ out of circulation to increase value of $ left in market, thereby decreasing inflation.)

The Shifting American The Shifting American EconomyEconomy

• U.S. share of world markets declines

• U.S. heavy industrial production declines…U.S. becomes service industry centered

• High technology prospers

• Businesses tend to diversify

The Ford AdministrationThe Ford Administration 1974-1974-7676

• Pardon of Nixon unpopular

• Democratic Congress alienated• disclosure of illegal CIA activities under

Kennedy and Johnson• opposes Democratic bills protecting the

environment and civil rights

The 1976 CampaignThe 1976 Campaign

• Ford damaged by Watergate

• Democrat Jimmy Carter wins close vote• former governor of Georgia• campaigns as outsider• calls for decency, morality in government

Disenchantment with Disenchantment with CarterCarter

• Carter displays lack of political vision

• Outsider status hampers effectiveness

• 1979--Carter blames American people for "national malaise"

From Détente to From Détente to Renewed Cold WarRenewed Cold War

• U.S. international dominance declined sharply in the 1970s

• Internal and external events weakened foreign policy

Retreat in AsiaRetreat in Asia

• April 1975--North Vietnam captures Saigon

• U.S. response--evacuation, no aid

• Subsequent incidents met with caution, restraint

Accommodation in Latin Accommodation in Latin AmericaAmerica

• 1977--treaty returns Panama Canal to Panama

• 1979--U.S. refuses aid to Nicaraguan government against Sandinistas

• Carter assists El Salvador against Marxist rebels

The Quest for Peace in The Quest for Peace in the Middle Eastthe Middle East

• Carter’s success• 1978--Camp David Accords • 1979--Israeli-Egyptian peace treaty

• Carter’s failure• 1979--Iranian Revolution • November--U.S. embassy in Teheran

invaded, 58 Americans taken hostage• Carter fails to secure hostages’ release

The Cold War ResumesThe Cold War Resumes

• Carter, Brzezinski shift from Détente• condemn Soviet human rights abuses• new missile systems deployed• increased aid to China

• December, 1979--Russians invade Afghanistan

A Failed PresidencyA Failed Presidency

• Carter lost public confidence during the Iranian hostage crisis

• Double-digit inflation also contributed to voter disappointment