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1970’s 1970’s The Stalemated The Stalemated Seventies Seventies

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Page 1: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

1970’s1970’sThe Stalemated SeventiesThe Stalemated Seventies

Page 2: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

EconomyEconomy As the 1960’s came to a close and the 1970’s As the 1960’s came to a close and the 1970’s

started, the post-war economic boom started to started, the post-war economic boom started to slow to a trickle. slow to a trickle. 25 years after WWII, in 50’s and 60’s productivity 25 years after WWII, in 50’s and 60’s productivity

rates more than doubled the standard of livingrates more than doubled the standard of living However, around 1970, productivity gains almost However, around 1970, productivity gains almost

vanished. For the whole decade, the productivity vanished. For the whole decade, the productivity rates increased the equivalent to one year in the rates increased the equivalent to one year in the previous two decades. previous two decades.

At that rate, it would take 500 years to see another At that rate, it would take 500 years to see another doubling of the standard of living. doubling of the standard of living.

In addition, median income stagnated from roughly In addition, median income stagnated from roughly 1970-1990, and only reason for the absence of a 1970-1990, and only reason for the absence of a decline is dual income families (wives working too)decline is dual income families (wives working too)

Page 3: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

During the long post-World War II economic boom (from about 1950 to 1970), family During the long post-World War II economic boom (from about 1950 to 1970), family incomes increased dramatically, but after 1970 “real,” or inflation-adjusted, incomes incomes increased dramatically, but after 1970 “real,” or inflation-adjusted, incomes stagnated. Prosperity in the late 1990s led to a slight upward trend, though adjusted stagnated. Prosperity in the late 1990s led to a slight upward trend, though adjusted median family income began to decline in the early years of the twenty-first century.median family income began to decline in the early years of the twenty-first century.

Median Family Income, 1970–2001Median Family Income, 1970–2001

Sources: U.S. Census Bureau, Bureau of Labor Statistics, Statistical Abstract of the United States, 2003, and John J. McCusker, “Comparing the Purchasing Power of Money in the United States (or Colonies) from 1665 to 2003,” Economic History Services, 2004.

Page 4: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

EconomyEconomy Why a slump in productivity?Why a slump in productivity?

Not clear, but author suggests the following reasons:Not clear, but author suggests the following reasons:• Increase of women and teenage workers, who did Increase of women and teenage workers, who did

not have long-term jobs and did not learn skills to not have long-term jobs and did not learn skills to increase productivityincrease productivity

• Declining investment in new machineryDeclining investment in new machinery• Heavy costs of government regulationHeavy costs of government regulation• Shift from manufacturing to services (tougher to Shift from manufacturing to services (tougher to

improve productivity with services)improve productivity with services)• Vietnam War and its costs to the government Vietnam War and its costs to the government

(opportunity costs of investment in education, R + (opportunity costs of investment in education, R + D, science)D, science)

• Vietnam War and Welfare spending leads to crazy Vietnam War and Welfare spending leads to crazy inflationinflation

• Gas Prices risingGas Prices rising

Page 5: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

EconomyEconomy

Huge culprit was inflation:Huge culprit was inflation: Too many dollars chasing too few goods, Too many dollars chasing too few goods,

means inflation.means inflation. With Defense Spending and Welfare, more With Defense Spending and Welfare, more

dollars in more Americans hands at same dollars in more Americans hands at same time productivity fails to increase. time productivity fails to increase.

1968-1980, cost of living tripled. Longest 1968-1980, cost of living tripled. Longest period of inflation and steepest in nation’s period of inflation and steepest in nation’s history. history.

Page 6: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

The Nixon WaveThe Nixon Wave

During Richard Nixon’s During Richard Nixon’s presidency, Americans presidency, Americans experienced the first experienced the first serious inflation since serious inflation since the immediate post-the immediate post-World War II years. The World War II years. The inflationary surge grew inflationary surge grew to tidal-wave to tidal-wave proportions by the late proportions by the late 1970s, when the 1970s, when the consumer price index consumer price index rose at an annual rate rose at an annual rate of more than 10 of more than 10 percent.percent.

New York Daily World

Page 7: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

EconomyEconomy

Other issues:Other issues: After World War II, few to any competitors for After World War II, few to any competitors for

American steel, manufacturing, automobiles, American steel, manufacturing, automobiles, and electronics.and electronics.

Little to no need to modernize or improve, Little to no need to modernize or improve, people bought your stuff without improving or people bought your stuff without improving or modernizing technology or management.modernizing technology or management.

But in the 1970’s German and Japanese But in the 1970’s German and Japanese products proved to be superior in quality products proved to be superior in quality because they had modernized their because they had modernized their technology and management techniquestechnology and management techniques

Page 8: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Nixon on VietnamNixon on VietnamNixon on VietnamNixon on Vietnam

Nixon’s 1968 Campaign promised an Nixon’s 1968 Campaign promised an end to the war: end to the war: Peace with HonorPeace with Honor

VietnamizationVietnamization Slowly withdraw 540,00 American troopsSlowly withdraw 540,00 American troops and pass responsiand pass responsibilitybility of their defense to Southof their defense to South Vietnamese (with American financial andVietnamese (with American financial and militarymilitary

Nixon DoctrineNixon Doctrine Basically, U.S would honor currentBasically, U.S would honor current commitments, but in future warscommitments, but in future wars Asians and others would have Asians and others would have to fight their own wars withoutto fight their own wars without the support of large bodies ofthe support of large bodies of US ground troopsUS ground troops

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Reversing Kennedy’s inaugural plea to “bear any burden,” Nixon told Congress in February Reversing Kennedy’s inaugural plea to “bear any burden,” Nixon told Congress in February 1970, “America cannot--and will not--conceive all the plans, design all the programs, 1970, “America cannot--and will not--conceive all the plans, design all the programs, execute all the decisions and undertake all the defense of the free nations of the world.”execute all the decisions and undertake all the defense of the free nations of the world.”

President Richard M. NixonPresident Richard M. Nixon

Constantine Manos/ Magnum Photos

Page 10: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

VietnamVietnam By 1970By 1970

Longest conflict in American historyLongest conflict in American history 40,000 killed40,000 killed 250,000 wounded250,000 wounded

Draft policies exempted college students and men with Draft policies exempted college students and men with critical civilian skillscritical civilian skills

So, troops were disproportionately poor and blacks served So, troops were disproportionately poor and blacks served disproportionately.disproportionately.

Drug abuse, alcoholism, mutiny, and sabotage created Drug abuse, alcoholism, mutiny, and sabotage created low morale amongst soldiers. low morale amongst soldiers.

Not knowing their enemy, trudging through the jungle Not knowing their enemy, trudging through the jungle and swamps all took their toll and swamps all took their toll

My Lai MassacreMy Lai Massacre U.S. troops massacred women and children in the village of My U.S. troops massacred women and children in the village of My

Lai 9evidence of the demoralizing nature of the conflict)Lai 9evidence of the demoralizing nature of the conflict)

Page 11: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Cold War? Cold War? Not for SomeNot for Some

This poignant cartoon reminds This poignant cartoon reminds its audience that while the its audience that while the rhetoric of the day might have rhetoric of the day might have been about a "Cold War," as been about a "Cold War," as America pursued its anti-America pursued its anti-communist policies around the communist policies around the world, some Americans were world, some Americans were paying a very real price.paying a very real price.

Portland Oregonian

The War at Home

Antiwar students clash with police in Ann Arbor, Michigan, in 1970.

Page 12: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

CambodiaCambodia Cambodia was used by Vietcong and North Cambodia was used by Vietcong and North

Vietnamese as a springboard for troops, Vietnamese as a springboard for troops, weapons, and suppliesweapons, and supplies April 29, 1970, Nixon ordered US troops to clean April 29, 1970, Nixon ordered US troops to clean

Cambodia of the Vietcong and North Vietnamese. Cambodia of the Vietcong and North Vietnamese. Most importantly, he did this without consulting Most importantly, he did this without consulting Congress.Congress.

Many respond in protest to eh escalation of the Many respond in protest to eh escalation of the war into Cambodia, especially without war into Cambodia, especially without congressional approvalcongressional approval Kent State (4 shot dead) and Jackson State (2 killed) Kent State (4 shot dead) and Jackson State (2 killed)

occur occur

Page 13: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

““Pentagon Papers,” Pentagon Papers,” 19711971

““Pentagon Papers,” Pentagon Papers,” 19711971

Former defense analyst Former defense analyst Daniel EllsbergDaniel Ellsbergleaked govt. docs. regarding war efforts during leaked govt. docs. regarding war efforts during Johnson’s administration to the Johnson’s administration to the New York TimesNew York Times..

Docs.Docs. Govt. misled Congress & Amer. People Govt. misled Congress & Amer. People regarding its intentions in Vietnam during mid-regarding its intentions in Vietnam during mid-1960s.1960s. Primary reason for fighting not to Primary reason for fighting not to

eliminate communism, but eliminate communism, but to avoid to avoid humiliating defeathumiliating defeat. .

New York Times v. United StatesNew York Times v. United States (1971) (1971) ** Also, Congress repealed the Tonkin Also, Congress repealed the Tonkin

Gulf Resolution to curtail Nixon’s Gulf Resolution to curtail Nixon’s powerpower

Page 14: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Balancing ActBalancing Act

China and Soviet China and Soviet

Union had a Union had a contentious contentious relationship. relationship. Nixon played Nixon played them off each them off each other to cool Cold other to cool Cold War tension and War tension and get peace in get peace in VietnamVietnam

Ranan R. Lurie/ Cartoonnews International

Page 15: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Some Some Chicken, Chicken,

Some Egg, Some Egg, 19751975

This cartoon pokes fun at Henry This cartoon pokes fun at Henry Kissinger as a global Kissinger as a global statesman. Serving first as statesman. Serving first as President Nixon’s national President Nixon’s national security adviser and then as security adviser and then as secretary of state in the Nixon secretary of state in the Nixon and Ford administrations, the and Ford administrations, the German-born Kissinger brought German-born Kissinger brought with him to Washington a with him to Washington a sophisticated--some said sophisticated--some said cynical--view of the world honed cynical--view of the world honed during his nearly two decades during his nearly two decades as a political science professor as a political science professor at Harvard.at Harvard. The Economist

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Nixon and DetenteNixon and Detente

In 1972, Nixon was the first president to visit In 1972, Nixon was the first president to visit Communist China. Capped visit with the Communist China. Capped visit with the Shanghai Communique, in which both nations Shanghai Communique, in which both nations agreed to normalize their relations. U.S. also agreed to normalize their relations. U.S. also accepted One-China policyaccepted One-China policy

Next Nixon went to Moscow and played the Next Nixon went to Moscow and played the China card. Also knew that the Soviets needed China card. Also knew that the Soviets needed food supplies. food supplies. US agreed to sell 750 million in wheat, corn, and US agreed to sell 750 million in wheat, corn, and

other cereals. other cereals.

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SALT TreatySALT Treaty US and USSR agreed to treaties on anti-ballistic US and USSR agreed to treaties on anti-ballistic

missile defense systems and also arms-missile defense systems and also arms-reductions negotiations (SALT-Strategic Arms reductions negotiations (SALT-Strategic Arms Limitation Talks).Limitation Talks).

Goal was to freeze long range nuclear missiles Goal was to freeze long range nuclear missiles for 5 years. for 5 years.

Important in curtailing the arms race, but even Important in curtailing the arms race, but even though defensive systems forbidden, US still though defensive systems forbidden, US still wnet ahead with development of MIRV’s. wnet ahead with development of MIRV’s. (designed to overcome any defense system by (designed to overcome any defense system by overwhelming it)overwhelming it)

Thus, Soviets did the same and built MIRV’sThus, Soviets did the same and built MIRV’s By 1980’s, 16,000 Nuclear Warheads on each By 1980’s, 16,000 Nuclear Warheads on each

side.side.

Page 18: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Changes on the BenchChanges on the Bench Warren CourtWarren Court

Chief Justice Earl Warren, following his Chief Justice Earl Warren, following his appointment in 1953, presided over a preiod appointment in 1953, presided over a preiod of judicial activism that ruled on cases that of judicial activism that ruled on cases that drastically affected sexual freedom, the rights drastically affected sexual freedom, the rights of criminals, the practice of religion, civil of criminals, the practice of religion, civil rights, and the structure of political rights, and the structure of political representation. representation.

His Court’s decisions reflected deep concern His Court’s decisions reflected deep concern for the individualfor the individual

Page 19: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Warren CasesWarren Cases Griswold v. Connecticut (1965):Griswold v. Connecticut (1965):

Struck down state law that prohibited use of Struck down state law that prohibited use of contraceptivescontraceptives

Gideon v Wainwright (1963)Gideon v Wainwright (1963) All defendants in serious criminal cases had All defendants in serious criminal cases had

right to counsel, regardless if they were poor right to counsel, regardless if they were poor or not. or not.

Escobedo (1964) and MirandaEscobedo (1964) and Miranda Right of the accused to remain silent and Right of the accused to remain silent and

enjoy other protections to the accused. enjoy other protections to the accused.

Page 20: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Warren CaseWarren Case

New York Times v Sullivan (1964)New York Times v Sullivan (1964) Public figures can sue for libel only if they can prove Public figures can sue for libel only if they can prove

that malice motivated their defamers (hard to do).that malice motivated their defamers (hard to do). Opens the door for criticism of public f\officials and Opens the door for criticism of public f\officials and

their private lives. their private lives.

Engel v Vitale (1962) and Abington v Schempp Engel v Vitale (1962) and Abington v Schempp (1963)(1963) Eliminate prayer and Bible readings at school. Eliminate prayer and Bible readings at school.

Invoking First Amendment and separation of Church Invoking First Amendment and separation of Church and Stateand State

Page 21: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Warren CasesWarren Cases

Reynolds v Sims (1964)Reynolds v Sims (1964) Ruled against unfair representation in state Ruled against unfair representation in state

representatives. Used one man one vote theory and representatives. Used one man one vote theory and cows do not count (basically, voting power in some cows do not count (basically, voting power in some rural areas was 1000 times more than in rural areas was 1000 times more than in underrepresented urban settings.)underrepresented urban settings.)

Nixon looked to change the make-up of the Nixon looked to change the make-up of the bench and have a less meddlesome and activist bench and have a less meddlesome and activist Supreme Court. By 1971, Nixon appointed 4 Supreme Court. By 1971, Nixon appointed 4 conservative justices. But Chief Justice Burger conservative justices. But Chief Justice Burger not as conservative as he hoped (Roe v Wade)not as conservative as he hoped (Roe v Wade)

Page 22: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Nixon and Domestic PolicyNixon and Domestic Policy Nixon surprisingly expanded welfare and Nixon surprisingly expanded welfare and

entitlements programs:entitlements programs: Food Stamps, Medicaid, and Aid to Families with Food Stamps, Medicaid, and Aid to Families with

Dependent Children all got more appropriationsDependent Children all got more appropriations In 1972, agreed to automatic Social Security cost-of-In 1972, agreed to automatic Social Security cost-of-

living increasesliving increases Philadelphia PlanPhiladelphia Plan

• Construction unions to establish goals and timetables for the Construction unions to establish goals and timetables for the hiring of black apprentices hiring of black apprentices

• Later extended to all federal contractors, essentially Later extended to all federal contractors, essentially establishes a quota system for minorities and extends establishes a quota system for minorities and extends Johnson’s affirmative actionJohnson’s affirmative action

• Griggs v Duke also eliminated intelligence tests. Basically, Griggs v Duke also eliminated intelligence tests. Basically, Nixon and the court made it a requirement to hire minority Nixon and the court made it a requirement to hire minority workersworkers

Page 23: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Nixon and Domestic PolicyNixon and Domestic Policy Two new agencies developed too:Two new agencies developed too:

Environmental Protection Agency (EPA)Environmental Protection Agency (EPA) Occupational Health and Safety Occupational Health and Safety

Administration (OHSA)Administration (OHSA)• Both a by-product of the increased concern in Both a by-product of the increased concern in

protecting the environmentprotecting the environment 1950 in LA air pollution control office established1950 in LA air pollution control office established 1962: Silent Spring written by Rachel Carson, exposed 1962: Silent Spring written by Rachel Carson, exposed

the poisonous effect of pesticides on nation. the poisonous effect of pesticides on nation.

• Clean Air Act of 1970 and Endangered Species Clean Air Act of 1970 and Endangered Species Act of 1973Act of 1973

Page 24: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

Nixon and Domestic PolicyNixon and Domestic Policy

In 1971, in instituted a wage freeze and In 1971, in instituted a wage freeze and price freeze for 90 days. price freeze for 90 days.

He also took the US off the Gold Standard, He also took the US off the Gold Standard, effectively ending the agreement at Breton effectively ending the agreement at Breton Woods to stabilizing international Woods to stabilizing international currencies. currencies.

Southern StrategySouthern Strategy To gain Southern votes, Nixon appointed To gain Southern votes, Nixon appointed

conservative Justices, soft pedaled civil rights, conservative Justices, soft pedaled civil rights, and opposed school busing to achieve racial and opposed school busing to achieve racial balance.balance.

Page 25: 1970’s The Stalemated Seventies. Economy  As the 1960’s came to a close and the 1970’s started, the post-war economic boom started to slow to a trickle

1972 Election1972 Election

Nixon v George McGovern (South Dakota Nixon v George McGovern (South Dakota Senator)Senator)

Vietnam was escalating in 72, despite Vietnam was escalating in 72, despite Nixon promising peace in 68. Nixon promising peace in 68.

McGovern promises to pull troops outMcGovern promises to pull troops out Nixon promises to draw back troops from Nixon promises to draw back troops from

540,000 to 30,000. 540,000 to 30,000. Kissinger announces peace is at hand 12 Kissinger announces peace is at hand 12

days before election days before election

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The Ceasefire, The Ceasefire, 19731973

The Ceasefire, The Ceasefire, 19731973

Peace is at handPeace is at hand Kissinger, 1972 Kissinger, 1972 North Vietnam attacks SouthNorth Vietnam attacks South Most Massive U.S. bombing Most Massive U.S. bombing

commencescommences

1973: Ceasefire signed between1973: Ceasefire signed between U.S., South Vietnam, & North U.S., South Vietnam, & North

VietnamVietnam

Peace with honorPeace with honor (President Nixon) (President Nixon)

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Nixon buried McGovern in this election, but when his administration soon thereafter Nixon buried McGovern in this election, but when his administration soon thereafter began to sink in a swamp of scandals, bumper stickers appeared in Boston began to sink in a swamp of scandals, bumper stickers appeared in Boston proclaiming, “Don’t blame me, I’m from Massachusetts.”proclaiming, “Don’t blame me, I’m from Massachusetts.”

Presidential Election of 1972 (with electoral vote Presidential Election of 1972 (with electoral vote by state)by state)

Copyright (c) Houghton Mifflin Company. All Rights Reserved.

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Cambodia and War Powers ActCambodia and War Powers Act U.S. Air Force conducted 3500 aerial raids U.S. Air Force conducted 3500 aerial raids

in Cambodiain Cambodia This shocked many Americans and they also This shocked many Americans and they also

questioned the constitutionality of the act. questioned the constitutionality of the act. Especially since many of these bombings Especially since many of these bombings occurred before official incursion in May 1970.occurred before official incursion in May 1970.

President and Congress confirmed Cambodia President and Congress confirmed Cambodia neutrality the whole time, even though they neutrality the whole time, even though they were bombing them.were bombing them.

Many Americans questioned what type of Many Americans questioned what type of representative government they had if war representative government they had if war was occurring without their knowledge. was occurring without their knowledge.

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Cambodia and War Powers ActCambodia and War Powers Act

Even after the cease-fire, Nixon continued Even after the cease-fire, Nixon continued bombing of communist forces in bombing of communist forces in Cambodia.Cambodia.