Chapter 21

Nixon OoohhhhYeah

Baby!!

Silent Majority

►Credited for bringing Nixon to office in 1968 Those that were tired of the 60’s

protesters Angry over welfare that increased 3-fold

from the 60’s (9.7 million in 1970, 5% of population)

Complex [wasteful?] bureaucracy created by the Great Society

“Peace with honor” in Vietnam

Southern Strategy

►Nixon sought the support of Southern conservatives

►Promised to seek NO new Civil Rights legislation

►Nixon concentrated on the principle that the law must be color-blind. Spoke out against 1971 court ruling on busing "I am convinced that while legal segregation is

totally wrong, forced integration of housing or education is just as wrong.

The Economy

►High levels of deficit spending War in Vietnam Great Society programs

►High levels of unemployment►High levels of inflation

STAGNANT ECONOMY + HIGH INFLATION

STAGFLATION!!!

Stag-flation►Stagflation is a

problem because Keynesian tools for directing the economy don’t seem to apply

►Stagflation creates a policy situation in which efforts to correct one problem (inflation or unemployment) can worsen the other.

Stag-flation►Check out the dilemma the federal

government has: The Federal Bank can choose to stimulate

the economy and create jobs by:►Increasing government spending►Decreasing taxes►Lowering interest% rates

But, this risks boosting the pace of inflation.

What would happen if the government reduced spending to decrease inflation?

ALL would likely lead to

> employment

U.S. Inflation Rates

What was the cause of this economic crisis?Rising Energy Costs

De-industrialization

Drastic Measures

►To control inflation Nixon instituted Wage and Price Controls Nixon froze wages, prices and rents

►Is this effective? Black Market

►Should the government have the right?

Energy Crisis►Organization of Petroleum Exporting

Countries – O.P.E.C. Yom Kippur War (Arab-Israeli War of 1973)

►Oil Embargo 1973-1974

►Solutions? Nuclear Energy Alaskan Oil > efficiencies

The Nixon Administration

►Nixon’s goals were to: re-establish “law and

order”, morality limit federal welfare

programs reduce the growth of

federal government end the U.S.

involvement in Vietnam

Family Assistance Plan►Guaranteed

minimum income for Americans families Employed and under-

employed would receive minimum of $2,400 per year for a family of four

All would have to work or receive job training while receiving aid

Pro-Con?►Voted down! Why?

Domestic Legislation

►E.P.A. -Environmental Protection Agency Enforced environmental laws and

regulations►Clean Air Act►Water Quality Improvement Act

►O.S.H.A. – Occupational Safety and Health Administration

Diplomatic Success

►China Visit – February 1972 Ping-pong diplomacy Mao Zedong What was gained by this visit?

►USSR Visit – May 1972 Leonid Brezhnev SALT I

►Halt ICBM production

Nixon and China

► Why did Richard Nixon, the outspoken anti-Communist, reverse the United States Chinese policy?

Realism - The most populous country in the world wasn't going away anytime soon.

World Pressure – Many were calling for mainland China's admission to the United Nations.

Bargaining chip with the Soviet Union - Soviet Premier Brezhnev would not want to see the Soviet Union's two main geopolitical rivals--China and the United States--close ranks against him.

Nixon could get away with it - Nixon's history as a crusader against Communism protected him.

Nixon and the Soviets

►Seeking détente (reduction of tension)

China Pressure►Leonid Brezhnev►SALT I

ICBM’s

Diplomatic Issues

►Realpolitik Balance of Power

►US/Europe/Japan & China/USSR

►Henry Kissinger

►Limitations 3rd World

WatergateScandal

The Plan

►Break into the Democratic National Committee’s offices at the Watergate Hotel and plant listening devices

►The goal was to obtain political information that would be useful during the 1972 presidential campaign [Dem] George McGovern [Rep] Richard Nixon

BUSTED!!!

►On June 17, 1972, a security guard working at the Watergate noticed a piece of tape holding a door open and called police

►After the police came, five men were discovered and arrested for breaking into the headquarters of the Democratic National Committee (DNC)

►The men supposedly had broken into the same office on May 27 and 28 as well, and had returned intending to fix wiretaps that were not working

The Investigation► The Washington Post fueled focus on the event. ► The connection between the Watergate burglary

and the President's re-election campaign fundraising committee (CREeP) ($25.000)

► Fed tips by an anonymous source identified only by the code name "Deep Throat”, reporters Bob Woodward and Carl Bernstein uncovered information that the break-in and its cover-up it up led to the White House itself.

► After the trial and conviction of the burglars, the investigations grew broader; a Senate committee chaired by Senator Sam Ervin was established What level of involvement did the White House have? What did the President know?

The Pressure Mounts

►By May 1973, Nixon was forced to ask for the resignation of many top White House advisors, many of whom would soon be indicted and ultimately go to prison.

►Public was made aware of the “enemies list” and the plumbers

►Nixon fired White House Counsel John Dean, who had just testified before the Senate and would go on to become the key witness against Nixon himself.

►Archibald Cox was named special counsel for the growing Watergate inquiry. Televised hearings begin.

John Dean Testifies

► Dean, former White House counsel, helped plan the Watergate break-n and cover-up

► He was the first to testify that Nixon knew of the plan to wire tap the DNC

► In June 1973, he claimed that he and Nixon had discussed the cover-up, “at least 35 times”

The country become transfixed

by the investigation of

Watergate via the televised hearings

of the Senate Select Committee

on Presidential Campaign Activities.

Focusing on Nixon

►Sen. Ervin conducts three months of televised hearings which report enemies lists, money drops, illegally obtained campaign funds, and harassment by IRS of political enemies.

►Most importantly, a secret tape-recording system in the White House is discovered. 

The Tapes

► The tapes were soon subpoenaed by first special prosecutor Archibald Cox and then the Senate, as they might prove whether Nixon or Dean was telling the truth about key meetings.

► Nixon refused, citing the principle of executive privilege, and ordered Cox, via Attorney General Richardson, to drop his subpoena.

► The focus of suspicion began to center on Nixon himself

"I have earned every cent. And in all of my years in public life I have never

obstructed justice. People have got to know whether or not their president is a

crook. Well, I'm not a crook".

On April 3, 1974, the White House announced that

Nixon would pay $432,787.13 in back taxes after an investigation by

the IRS and a congressional committee. Among Nixon's benefits to

himself were improvements in his

properties, supposedly necessary for his

protection. These included a security ice maker, a security swimming pool

heater, security club chairs and table lamps, security sofa and security pillows.

Running Out of Time

► July 23, 1973: Nixon refuses to turn over the presidential tape recordings to the Senate committee or the special prosecutor.

► October 20, 1973: Saturday Night Massacre: Nixon fires special prosecutor Archibald Cox - Impeachment pressure mounts.

► November 17, 1973: Nixon declares, "I'm not a crook," maintaining his innocence from Watergate.

► December 7, 1973: The White House can't explain an 18 1/2 -minute gap in one of the subpoenaed tapes.

► April 30, 1974: The White House releases more than 1,200 pages of edited transcripts of the Nixon tapes, but House committee insists the tapes themselves must be turned over.

Even more damning than President Richard Nixon's

profiting from public office were the

disclosures of his corruption and attempts

at corruption of the government itself

including the CIA, the FBI, the Pentagon and even the Secret Service. A

taping system that had recorded most of President Nixon's

conversations in the Oval Office provided the

"smoking gun" that spoke of crime and corruption. Nixon refused to release

the tapes until the Supreme Court ordered

him to do so.

U.S. vs. Nixon (1974)

► July 24, 1974: The Supreme Court rules unanimously that Nixon must turn over the tape recordings of 64 White House conversations, rejecting the president's claims of executive privilege.

► July 27, 1974: House Judiciary Committee passes the first of three articles of impeachment, charging obstruction of justice.

By July 14, 1974, President Richard Nixon stood almost alone. His

vice-president Spiro Agnew, pleaded nolo

contendere to a charge of tax evasion, and was

forced to resign.

The House Judiciary Committee

recommended impeachment, and the

Supreme Court required him to turn over all subpoenaed tapes. Nixon bowed to the

inevitable, resigning on August 9.

Nixon Resigns

► August 8, 1974: Richard Nixon becomes the first U.S. president to resign.

► Vice President Gerald R. Ford assumes the country's highest office. He will later pardon Nixon of all charges related to the Watergate case.