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1970s Economic Stagnation and Political Turmoil
1. The Stalemated
Seventies
1968-1980
Guiding Questions & Lecture
Chapter 39
The American Pageant, 13th edition
2. Economic Stagnation
How did the US economy change during
the 1970s?
What were some of the factors leading to
economic stagnation?
3. Limited Growth + High Inflation
The post-WWII economic boom ended in 1970s;
productivity slowed and inflation increased
Main causes of slow-down and stagnation:
Increased numbers of lower-skilled, lower-
paid women and teens in the work force
Business faced costs of new machinery and
compliance with new government regulations
Shift from manufacturing to services (harder
to measure)
4. More Causes
Vietnam drained tax dollars and manpower.
Inflation caused by high oil prices, & by war
and social program spending (which
increased money flow) without increased
taxes—too many dollars + too few goods to
buy.
Other countries increased productivity and
therefore competition.
5. Nixon and Vietnam
What was Nixon’s policy of Vietnamization?
How was Nixon’s reaction to US concerns
divisive?
What increased widespread US disgust with the
Vietnam War?
Why did Nixon attack Cambodia, and what was
the result?
Why did anti-Communist Nixon seek détente with
China and the USSR?
6. “Vietnamization”: withdrawal of US troops from Vietnam
over time
continued provision of US money, weapons, training & advice to
South Vietnam
SV to fight their own war
The Nixon Doctrine: the US would honor standing
commitments in Asia, but in future, no US troops would
fight on the ground
Reacting to 1969 Vietnam Moratorium, Nixon went on
TV to speak to the “silent majority” in favor of the war
increased divisions in US population
Concerns over draft inequities, soldiers’ disaffection, My
Lai Massacre, etc.
7. Nixon ordered US soldiers into Cambodia to root
out Vietcong…without consulting Congress.
Reactions:
National protests: Kent State (4 dead), Mississippi (2 dead)
Congress repealed Gulf of Tonkin Resolution
26th Amendment: voting age to 18
Pentagon Papers (Daniel Ellsberg of NYT):
revealed the full story on Vietnam to national
disgust
10. In 1972, anti-communist Nixon sought
détente with China, then with USSR.
Led to:
Renewal of nuclear arms control talks: ABM, SALT
At same time, renewal of missile defense race
De-iced the Cold War
Soviets and Chinese later stand by when bombing
in Vietnam increases in 1973
11. Nixon at Home
How did the Supreme Court express liberal
social ideas?
How did Nixon try to conservatize the
Court?
How did Nixon expand government social
services and help the environment?
Why did Nixon take the U.S. of the gold
standard?
12. Liberal Court
Liberal court under Chief Justice Earl Warren:
Since 1953
Griswold v. Connecticut—right of privacy (birth control)
Gideon v. Wainwright—right of criminal defendants to legal
counsel
Escobedo and Miranda—right to remain silent, etc.
New York Times v. Sullivan—libel suits only if malice
Engel v. Vitale, etc.—against required prayers in public
schools
13. Nixon at Home
Sought to conservatize the Supreme Court.
Warren Burger named chief justice, not as
conservative as Nixon expected
Expansion of social services
AFDC (Aid to families with dependent children)
SSI (Supplemental Security Income—old, disabled)
Expanded affirmative action (Philadelphia Plan),
perhaps unintentionally
EPA (influence from Rachel Carson), OSHA
14. More Nixon at Home
Took US off the gold standard and
devalued the dollar in reaction to inflation
With promise of peace in Vietnam, won with
landslide in 1972
Peace with honor was a farce
Heavy bombing of NV brought them back to
table
Cease-fire: US to withdraw troops, get POWs,
SV would get some US support; election
planned; NV could keep some troops in SV
15. Crisis After Crisis
What was the truth behind the lies on
Cambodia?
Why did Congress pass the War Powers
Act, and what did it achieve?
What caused the Arab Oil Embargo, and
what were the results for the U.S.?
How did Watergate lead to Nixon’s
downfall?
16. Crisis After Crisis
Outright lies on Cambodia revealed at the same
time as tapes
War Powers Act of 1973
Arab Oil Embargo of 1974—reaction to US’s
Israel policy
Oil pipeline, 55 speed limit, alternative sources, nuclear
power, fuel efficiency
17. Watergate
CREEP—Republican re-election committee
engaged in dirty-tricks campaigning
caught burgling the Democratic headquarters at Watergate
VP Spiro Agnew removed for kickbacks
Congress replaces him with Gerald Ford
Cover-up and intimidation followed at the highest
levels (Nixon’s aides, FBI, CIA)
1973-1974 hearings—John Dean reveals all
including Nixon’s prior knowledge which he had denied
corroborated by tapes from Oval Office
18. After Nixon
Why was Gerald Ford the first unelected
president?
How did the Vietnam War finally end?
How were women’s rights supported in the
1970’s?
What happened to school integration and
affirmative-action in the courts?
19. An Unelected President
Ford selected, never elected
When Nixon’s VP Agnew was forced to resign for
bribe-taking, Congress selected Congressman
Gerald Ford to replace him
When Nixon himself resigned during Watergate
scandal, Ford became president
Ford quickly pardoned Nixon of all crimes
20. Foreign Affairs
Helsinki Accords of July 1975
Ford continued policy of détente w/Soviet Union
US & 34 other nations confirmed Soviet-dictated
boundaries in Eastern Europe and officially
ended WW2
USSR soon ignored human rights promises
made as part of deal & Cold War resumed
21. More foreign affairs
Vietnam Collapses
Ford’s attempts to maintain weapons shipments to SV
rejected by Congress
South Vietnam quickly fell to Vietcong
Remaining Americans & 140,000 South Vietnamese
were dramatically airlifted out of Saigon, April 29, 1975
Costs to U.S.
$118 billion; 56,000 dead & 300,000 wounded
Dealt severe blow to American standing in the world &
weakened U.S. economy
22. The Women’s Movement
Title IX of Education Amendments passed by
Congress in 1972
Outlawed sex discrimination in any federally assisted
education program, including sports
Equal Rights Amendment (ERA)
passed by Congress but died after 10 year fight,
failed to gain state support necessary for constitutional
amendment
fought by anti-feminists such as Phyllis Schlafly, the
Catholic Church & the religious right
23. Court Cases
Anti-discrimination cases favoring women
Reed v. Reed (1971)
Frontiero v. Richardson (1973)
Abortion Rights
Roe v. Wade (1973): woman’s decision to
end a pregnancy protected by the
constitutional right of privacy
24. Racial Issues
Limits on forced busing for desegregation
Millikin v. Bradley (1974)
Desegregation plans could not require movement of
students across school district lines
Controversies over “affirmative action”
Regents of U.C. v. Bakke (1978): suit brought by
white student rejected by U.C. Davis
Admissions preferences could not be given on basis
of race alone, tho’ race could play a role in creating a
diverse student body
25. Carter’s Presidency
What was accomplished at the Camp David
Accords in 1978?
What contributed to high inflation during
Carter’s presidency?
How did Carter respond to the oil crisis?
Describe Soviet-U.S. relations under Carter.
How was the U.S. involved with events in
Iran, and what was the result?
26. Jimmy Carter
Democrat elected as an outsider to “clean
up” Washington D.C. after Watergate
Born-again Baptist & former governor of Georgia
Remained an outsider & had trouble with a
Democratic Congress
27. Carter’s Successes
Camp David Accords (1978)
Carter brokered a successful agreement between Israel’s
Begin and Egypt’s Sadat
Israel to withdraw territory won in 1967 & Egypt to respect
Israel’s borders
Diplomatic relations with China resumed
Treaties to turn over Panama Canal to Panama
Set up Department of Energy; cut taxes
28. Carter’s Challenges
Soviets & Cubans supporting revolutionary
groups in Africa
Arms control deals stalled
U.S. inflation above 13% by 1979
Increasing reliance on imported oil
Shrinking dollar hurt those on fixed incomes
Growing budget deficits
High interest rates (“prime rate” went to 20%!!)
29. Carter’s Crises
Iranian revolution disrupts oil supplies
OPEC raises oil prices: long gas lines & inflation
Carter’s “program” during Oil Crisis
Criticized Americans and “cleaned out” his Cabinet
SALT II fails without Senate’s support
Iranian hostage crisis
American Embassy staff taken hostage & held for 444
days; demands for Shah’s return; failed rescue attempt
Soviets invade Afghanistan
US embargo of USSR & boycott of Moscow Olympics