5._Nixon_domestic

5._Nixon_domestic - 3/19/09 1. Nixons Staff C. Nixon...

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3/19/09 1 C. Nixon Domestic Affairs 1. Nixon’s Staff • Nixon had competent cabinet officials, but it was his White House staff who he trusted and who he relied on • In return, those White House staffers gave him their complete loyalty, carried out his orders, and shielded him from the outside world H.R. Haldeman • Chief of Staff John Ehrlichman • Nixon’s personal lawyer & Chief Domestic Advisor John Mitchell • Attorney General Henry Kissinger • At first the head of the National Security Council • Secretary of State
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3/19/09 2 • Kissinger played a very important role in the Nixon White House especially in the following events: – Ending Vietnam (Paris Peace) – Opening diplomatic relations with China – SALT – Negotiating a cease-fire in the Yom Kippur War 2. Supreme Court • In Nixon’s first term 4 out of 9 Justices either died or resigned • Nixon was now able to shape the court in a more conservative fashion • Nixon named Warren Burger as Chief Justice, replacing Earl Warren • Moderate on the bench… would get approved by the Senate easily 3 more conservatives on the bench • Harry A. Blackmun • Lewis F. Powell, Jr. • William H. Rehnquist
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3/19/09 3 3. Economy • In 1968, Nixon faced a shaky economy – Inflation – Unemployment high – Budget wasn’t balanced – High Federal spending • Nixon wanted to – Halt inflation – Reduce gov’t spending – Avoid gov’t control of wages and prices • Nixon had a hard time of it – Controlling spending was difficult – Unemployment and inflation continued to rise • Nixon had to consider deficit spending to stimulate the economy… in fact in 1971, Nixon announced “I am now a Keynesian in economics!” • In an attempt to counteract the economic effects of both recession and inflation, Nixon froze wages, prices,and rents in 1971 for 90 days • Business and labor led him to lift these controls and inflation soared again • Overall the economy during Nixon was “shaky” 4. Oil Crisis • We depend on cheap, imported oil for about 1/3 of our energy needs • Most of which comes from the Middle East • When the US backed Israel in the Yom Kippur war Arab members of OPEC imposed an embargo on the shipping of oil to the US and raised their prices per/barrel from $3.00 to $11.65
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3/19/09 4 • Higher oil prices added to inflation hurt everyone • In turn inflation led consumers to cut back on spending • The result was recession and high rates of unemployment at 9% 5. Social Programs • Nixon wanted to redirect and shut down some of Johnson’s Great Society programs • Nixon felt the programs were wasteful and encouraged “welfare cheaters” Aid to Families with Dependent children (AFDC) • Gave needy families a basic minimum income • Heads of families had to register for job training and accept a job when one was found • Though never passed in the Senate, gave Nixon some “political points” with the poor Supplemental Security Income (SSI)
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5._Nixon_domestic - 3/19/09 1. Nixons Staff C. Nixon...

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