1. Politics and Economics
Chapter 28
Politics and Economics

2. Section 1 - The Nixon Administration
1968 election - Richard Nixon (Rep.) v. Hubert Humphrey (Dem.) and George Wallace (Ind) - wanted segregation in the deep south
Spiro Agnew - Gov. of Maryland , becomes Nixon’s VP
Warren Burger - conservative judge, appointed by Nixon
Upheld the death penalty , limited the rights of criminals
ELECTION

3. Section 1 New Federalism - gave more power to states and local Gov.
Revenue sharing - provided states with federal funds
President - Republican
House and Senate - Democrat
Nixon tried to get more Executive (Presidential ) power
Impounded - refused to release funds passed by Congress

4. More on Sect. 1
AFDC - Aid to Families with Dependent Children - critics said it gave aid instead of encouraging jobs
States had too much control
Domestic affairs - within the U.S. - Nixon was poor
Foreign affairs - outside the U.S. - Nixon’s passion
Henry Kissinger - National Security Advisor, Vietnamization
Better relations with Communist countries (USSR and China)
Détente - relaxation of tensions between China, USSR and U.S.

5. End of Sect. 1 After WWII China was communist under Mao Tse Tung
Nationalists fled to Taiwan - under Chaing Ke Shek
U.S. only recognizes the nationalists in Taiwan, until Nixon
Nixon was the 1st President to visit China since communist control (1972)
Moscow, U.S.S.R. (Nixon and Brezhnev, 1972)
Signed SALT - Strategic Arms Limitation Treaty - limited nuclear weapons and increased trade

6. Section 2 - Watergate
Watergate - Nixon administration attempt to cover up a break-in at Watergate, a hotel that was headquarters for the Democratic Committee
Nixon - created an enemies list while President
1972 election - George Wallace didn’t mount a campaign because an assassins bullet had paralyzed him
Nixon v George McGovern

7. Sect. 2 cont
Nixon - popular in the way he dealt with China and the USSR
Unpopular - Vietnam and domestic affairs
Nixon was paranoid and started spying on the democrats
June 17, men were busted breaking into Watergate (Democratic headquarters)
James McCord - one of the burglars - ex CIA and member of CRP (committee to re-elect the President)
Washington Post - kept the story alive
Reporters - Woodward and Bernstein

8. Watergate hearings Judge John Sirica
Senates Select Committee on Presidential Campaign Activities - set up by Senator Sam Ervin
John Dean - council to President Nixon, testified on Nixon involvement, said John Mitchell (Nixon’s Attorney General) ordered the break - in
Alexander Butterfield - Nixon’s aid - told them there were tapes of conversations in the Oval Office
Sirica Ervin Dean Mitchell Butterfield

9. Watergate - cont. Cox Bork Jaworski Agnew Ford
Nixon doesn’t want to give up the tapes so he claims Executive Privilege
Archibald Cox - special prosecutor for Watergate, asks for the tapes
Saturday night massacre - orders 3 different people to fire Cox
Finally Robert Bork does it, Leon Jaworski becomes new prosecutor
V.P. - Spiro Agnew resigns for other illegal activities, so Gerald Ford becomes the V.P. and eventually the new President after Nixon’s resignation
Cox Bork Jaworski Agnew Ford

10. End of Watergate House Judiciary votes to impeach President Nixon
Reasons:
1. Obstruction of Justice - wouldn’t give up the tapes
2. Cover - Up - ordering people to be fired for wanting the tapes and the truth
3. Misuse of Federal Agencies - ordering the CIA to help in the cover up
Aug. 9, Nixon resigns before the Senate removes him from office
Tapes prove the cover up

11. Section 3 - Gerald Ford and Jimmy Carter
1950’s and 60’s - good times economically because:
1. Good access to raw materials around the world
2. Strong manufacturing at home
1970’s the above conditions began to disappear
LBJ got us in trouble with deficit spending for Vietnam, without raising taxes
This caused too much money in the economy or INFLATION - rise in the cost of goods

12. Sect. 3 cont. U.S. is the largest consumer of OIL in the world
OPEC - Organization of Petroleum Exporting countries
Many conflicts in the Middle East - about oil and religion
Yom - Kipper War (Israel v Arab countries
OPEC decides to embargo (stop shipping) oil to countries that helped Israel, this includes the U.S.
Only lasted a few months but hurt the economy
Crude oil went from $3 a barrel (1973) to $30 a barrel (1980)

13. Sect. 3 cont
Loss of manufacturing jobs due to foreign competition (out sourcing)
Stagflation - rising prices and economic stagnation (flat)
Gerald Ford - pardons Nixon
Helsinki Accords
1. Recognized Eastern borders in Europe
2. Soviets would follow Human rights
Proposed WIN - whip inflation now - each person was to cut back on energy use

14. Jimmy Carter
1976 election Ford (Rep.) v Jimmy Carter (Dem.) - Carter is elected
Andrew Young - 1st African American Ambassador to the U.N.
Gave the Panama Canal back to Panama (1999)
Camp David Accords - peace talks between Israel and Egypt
Started Department of Energy

15. Conflict in Iran
The Shah(leader) of Iran was ousted from power by the revolutionaries of Iran
Shah had to flee to the U.S.
Ayatollah Khomeini was the new leader
Iran revolutionaries stormed the Embassy in Iran and took 52 Americans hostages
Held for 444 days
Helicopter went down trying to rescue them
Carter didn’t win re-election, maybe because of his inability to free the hostages

16. Sect. 4 The “Me” Decade: 1970’s
Tom Wolfe - labeled the 1970’s the “me” decade
New Age Movement - fulfillment spiritually through different activities
Self - healing to creating a new world
New Fads:
Yoga, martial arts, chanting, “Zen” or enlightenment, reincarnation
New religions based on gurus - mystical leaders
Transcendental meditation - daily meditation, harmony and health

17. Sect. 4 continued
TV of the 70’s - Mary Tyler Moore show, All in the Family - about a racist and his family, The Jeffersons, and Good Times
Music of the 70’s: soft rock and disco
Other Fads and fashions :
Personalized t-shirts, mood rings, CB radios, aerobic exercise