Chapter 27

Politics and Economics

Section 1 - The Nixon Administration1968 election - Richard Nixon (Rep.) v. Hubert Humphrey (Dem.) and George Wallace (Ind) - wanted segregation in the deep southSpiro Agnew - Gov. of Maryland , becomes Nixon’s VPWarren Burger - conservative judge, appointed by NixonUpheld the death penalty , limited the rights of criminalsELECTION

Section 1

New Federalism - gave more power to states and local Gov.Revenue sharing - provided states with federal fundsPresident - RepublicanHouse and Senate - DemocratNixon tried to get more Executive (Presidential ) powerImpounded - refused to release funds passed by Congress

More on Sect. 1

AFDC - Aid to Families with Dependent Children - critics said it gave aid instead of encouraging jobsStates had too much controlDomestic affairs - within the U.S. - Nixon was poorForeign affairs - outside the U.S. - Nixon’s passionHenry Kissinger - National Security Advisor, VietnamizationBetter relations with Communist countries (USSR and China)Détente - relaxation of tensions between China, USSR and U.S.

End of Sect. 1

After WWII China was communist under Mao Tse TungNationalists fled to Taiwan - under Chaing Ke ShekU.S. only recognizes the nationalists in Taiwan, until NixonNixon 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

Section 2 - Watergate

Watergate - Nixon administration attempt to cover up a break-in at Watergate, a hotel that was headquarters for the Democratic CommitteeNixon - created an enemies list while President1972 election - George Wallace didn’t mount a campaign because an assassins bullet had paralyzed himNixon v George McGovern

Sect. 2 cont

Nixon - popular in the way he dealt with China and the USSRUnpopular - Vietnam and domestic affairsNixon was paranoid and started spying on the democratsJune 17, 1972 - 5 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 aliveReporters - Woodward and Bernstein

Watergate hearings

Judge John SiricaSenates Select Committee on Presidential Campaign Activities - set up by Senator Sam ErvinJohn Dean - council to President Nixon, testified on Nixon involvement, said John Mitchell (Nixon’s Attorney General) ordered the break - inAlexander Butterfield - Nixon’s aid - told them there were tapes of conversations in the Oval OfficeSirica Ervin Dean Mitchell Butterfield

Watergate - cont.

Nixon doesn’t want to give up the tapes so he claims Executive PrivilegeArchibald Cox - special prosecutor for Watergate, asks for the tapesSaturday night massacre - orders 3 different people to fire CoxFinally Robert Bork does it, Leon Jaworski becomes new prosecutorV.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

End of Watergate

House Judiciary votes to impeach President NixonReasons:1. Obstruction of Justice - wouldn’t give up the tapes2. Cover - Up - ordering people to be fired for wanting the tapes and the truth3. Misuse of Federal Agencies - ordering the CIA to help in the cover upAug. 9, 1974 --Nixon resigns before the Senate removes him from officeTapes prove the cover up

Section 3 - Gerald Ford and Jimmy Carter1950’s and 60’s - good times economically because:1. Good access to raw materials around the world2. Strong manufacturing at home

1970’s the above conditions began to disappearLBJ got us in trouble with deficit spending for Vietnam, without raising taxesThis caused too much money in the economy or INFLATION - rise in the cost of goods

Sect. 3 cont.

U.S. is the largest consumer of OIL in the world

OPEC - Oil producing and exporting countries

Many conflicts in the Middle East - about oil and religion

1973 - 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)

Sect. 3 cont

Loss of manufacturing jobs due to foreign competition (out sourcing)Stagflation - rising prices and economic stagnation (flat)Gerald Ford - pardons NixonHelsinki Accords1. Recognized Eastern borders in Europe2. Soviets would follow Human rights

Jimmy Carter

1976 election Ford (Rep.) v Jimmy Carter (Dem.) - Carter is elected

Andrew Young - 1st African American Ambassador to the U.S.

Gave the Panama Canal back to Panama (1999)

Camp David Accords - peace talks between Israel and Egypt

Proposed W.I.N. - whip inflation now - each person was supposed to cut back on energy use on their ownStarted Department of Energy

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 leaderIran revolutionaries stormed the Embassy in Iran and took 52 Americans hostagesHeld for 444 daysHelicopter went down trying to rescue themCarter didn’t win re-election, maybe because of his inability to free the hostages