An Age of Limits

1. An Age of Limits Chapter 32

2. The Nixon Administration (1969-1974) • New Federalism: • Decrease size and influence of the Federal Government • Great Society had given too much power to the Federal Government (give power to the state and local government) • Revenue sharing-state and local governments can spend the federal money as they see fit • When it ended in 1986- $6 billion given

3. New Federalism • Welfare Reform: Nixon didn’t oppose welfare- • Family Assistance Act: every family of four with no outside income would receive $1600/year • Can earn up to $4000/ year with incentives • Take job training and accept any reasonable work available • Bill fails in the Senate-Liberals- too low minimum payment • Conservatives objected to guaranteed money

4. Two Faces of New Federalism • Enhanced some Federal programs dismantled some • Increased Social Security, Medicare and Medicaid payouts, made food stamps more assessable, supported subsidized housing, expanded Job corps • Nixon used impoundment to hold up laws he opposed-Means to withhold funds ($15 billion) • Eventually federal courts forced him to release the money • Abolished Office of Economic Authority-Johnson’s cornerstone to the Great Society

5. Law and Order • Fought with Congress • Also more liberal elements of society • Pledged to end Vietnam and the divisiveness it brought (1969 Campaign promise) • Deescalated the war and upped the “Law and Order” of the United States • Took on Urban rioting, anti-war demonstration • “Silent Majority” • Used full resources-sometimes illegally- FBI wiretapped left winged individuals, infiltrated groups such as SDS and radical African-American groups • CIA compiled documents on thousands of American Dissidents • Used the IRS to audit tax returns of antiwar and civil rights activists • Built an “enemies list”-administration would harass and destroy • Got help from Spiro T. Agnew, VP-scorned media

6. Southern Strategy • Conservative coalition • Appeal to Southern conservative Democrats by appealing to their distaste for desegregation and the Supreme Court • Southern Democrats thought party had become too liberal • Went after the George Wallace>, Governor of Alabama, voters in the South (13.5% as an independent running for President in 1968) • Integration slows: attract voters in the South • Nixon: “There are those who want instant integration and those who want segregation forever. I believe we need to have a middle course between those two extremes.” • Reversed several Civil Rights Policies • Supreme court orders Nixon to abide by the 2ndBrown v. Board of Education ruling and integrate schools at all deliberate speed • By 1972 90% of children attended desegregated schools in the South • Opposed busing

7. The Supreme Court Battle • Nixon criticized the Warren Court as too liberal • Nixon changes four justices (death, retirement, resignation) including Warren • Appointed Warren Burger> as Chief Justice • Put 3 more conservative leaning justices on the bench • Didn’t always go conservative-1971 ruling to integrate schools through busing

8. Economy • Stagflation-High unemployment-and inflation • Causes-massive deficit spending by Lyndon Johnson • Began to lose in international trade markets to Japan and West Germany, etc. • Flood of new workers (Baby boomers) • OPEC-oil cartel-1973 Yom Kippur War-sent massive aid to Israel against Syria and Egypt • OPEC cut off oil sales to US

9. Nixon’s attempts to cure economy • Raised taxes and cut the budget (Congress refused to go along) • Reduced the amount of money in circulation-by raising interest rates (sent US into a mild recession) • Price and wage controls-froze worker’s wages and business prices for 90 days (inflation eased, but recession continued)

10. Foreign Policy • Wins here • Henry Kissinger-Realpolitik and détente • Nixon in China-take advantage of decade long rift between USSR and Chins • 1972-visits-at Great Wall, Imperial Palace, and toasting top Communist leaders • Nixon and Mao>

11. Foreign Policy • USSR Trip: • 1972 three months after China • Soviet Premier-Leonid Brezhnev • Free access to West Berlin in return for recognizing East Germany • Strategic Arms Limitation Treaty (SALT I Treaty)limit ICBM and Sub launched missiles to 1972 limits

12. WATERGATE • The Imperial Presidency: Executive Branch had taken an air of Imperialism (supreme authority) • Nixon expanded the power of the Presidency

13. WATERGATE • Men in Nixon’s inner circle: • H.R. Haldeman: Chief of Staff • John Ehrlichman: Chief Domestic Adviser • John Mitchell: Attorney General • Secrecy and consolidation of power • Somehow above the law • Leads to cover-up

14. WATERGATE • Nixon lived with the fear of losing elections • Campaign team sought advantages • June 17, 1972-2:30am-guard at the Watergate complex caught 5 men breaking into the headquarters of the DNC • “the plumbers”-plug any government leaks and aid the Nixon administration in other ways • Intended to photo documents and place “bugs” (wiretap0 phones • Group’s leader-James McCord-former CIA agent also in a group called the Committee to re-elect the President • H.R. Haldeman notes in diary of Nixon’s obsession with how to respond to the break-in

15. WATERGATE • Should have disowned the break-in-fired anyone involved • Instead cover it up • Workers shredded anything incriminating in Haldeman’s office • Nixon urged the FBI to pressure the CIA from investigating(National Security) • Bought silence from burglars for $500,000 • Generated little interest from media throughout the ‘72 election • Only the Washington Post reporters Carl Bernstein and Bob Woodward> kept on the story.

16. WATERGATE • Wins ‘72 election in a landslide over George McGovern • All Watergate Burglars changed their pleas from innocent to guilty, except McCord who was found guilty by a jury • Judge John Sirica> makes it clear that this is just the beginning • Supervisors include G. Gordon Liddy and E. Howard Hunt and hinted that higher authorities lied under oath. • Sirica receives a letter from McCord stating that he is guilty and it goes higher up

17. WATERGATE • April 30, 1973: Nixon dismisses John Dean and Ehrlichman and Haldeman resign • Nixon goes on TV to deny involvement in the Watergate Affair • May, 1973- Senate begins investigation • Special Committee headed by Sam Ervin paraded in testimony • The President’s Men one-by-one dropped bombshells

18. WATERGATE • John Dean-Howard Baker: “What did the President know and when did he know it?” • Deeply involved in the cover-up • Nixon sends John Mitchell to deny the claim-Mitchell also denied approving the break-in and the wiretap and Nixon had no knowledge of it • July-Alexander Butterfield>-Presidential aide-Nixon taped virtually all his presidential conversations to help write his memoirs. • Tapes are the key

19. WATERGATE • Saturday Night Massacre • Year-long battle for the tapes • Archibald Cox>-Special Prosecutor, took President to court to get the tapes • Cox appointed by Elliott Richardson-who Nixon appointed to Attorney General after Mitchell • Nixon refused to give up the tapes and ordered Richardson to fire Cox • Richardson refused the order and resigned • Deputy Attorney General refused and was fired • Solicitor General Robert Bork finally fired Cox-replace with Leon Jaworski • Jaworski demands the tapes • The House begins impeachment proceedings • Days before-Spiro Agnew resigned after it was revealed that he accepted bribes in Maryland before and during his term as VP • Nixon nominated Gerald Ford as Agnew’s replacement • Agnew’s scandal makes investigators look at Nixon’s finances and they found that Nixon paid $1000 on a $200,000 salary.

20. WATERGATE • “People have the right to know whether or not their President is a crook. Well I am not a crook.” Nixon response to investigation of his finance • March 1974-grand jury indicts Mitchell, Haldeman, Ehrlichman, and four others • April 30, 1974-Nixon released edited transcripts of the conversation about Watergate • Hoped to show he was truthful • Turned out his bad language-and lack of concern about the scandal turned people off • Edited manuscript was not enough for the investigators • Wanted the unedited tapes-Nixon refused • July 24, 1974-Supreme Court rules unanimously that he must give up the unedited tapes

21. WATERGATE • House Judiciary recommends Impeachment • July 27-three articles of impeachment adopted • Charges-obstruction of justice, abuse of power, contempt of Congress • August 5 releases transcripts of the tapes-mysterious 18 minute gap-evidence is still there • June 23, 1972 conversation with H.R. Haldeman-Nixon knew and planned the obstruction a week after the break-in • August 8, 1974- Nixon resigns-admitted no guilt-”some judgments are wrong” • Gerald Ford becomes the President • EFFECTS: • Deep disillusionment with the imperial presidency • Ford and Carter could not work on the image of the presidency, too involved in economic problems

22. Gerald Ford (1974-1977) • “Our long national nightmare is over.” • Economy is the problem, however • Likable and honest: “I’m a Ford, not a Lincoln.” • September 8, 1974-pardons Nixon-move cost Ford • WIN (Whip Inflation Now)-cut back on use of oil and gas, other energy saving measures • Ford fights Congress on job package-vetoing 50 bills • Foreign Policy-relied on Kissinger • Helsinki Accords-greater cooperation between East and West • Communist Cambodia seizes the American ship, Mayaguez-Ford sends in air strikes, marines to rescue crew-41 US troops die

23. Jimmy Carter (1977-1981) • Former Governor of Georgia • Peanut Farmer • As far from Washington as you could get • Down-to-earth style • Carter walked rather than rode in the Limo • Energy crisis is domestic policy • Cut consumption of oil and gas energy • Turn down their thermostats to 65* and 55* at night • Proposed a Department of Energy cabinet position • National Energy Act-tax on gas guzzling cars-removed price controls from natural gas and oil made in the US • Crisis Worsens: Carter asks for voluntary price and wage freeze, spending cuts, deregulated trucking, railroad, shipping • Convinced Federal Reserve to raise interest rates • None worked and it looked like there was no policy at all