Economic policy

What was the Key Plank?

What was the Key Plank?

Reverse income tax for the poor. If your income was below a set threshold you would be exempt from income tax and given supplementary income from the government. Designed as a safety net that incentivised employment.

What was the Family Assistance Programme and why was it dropped? (2)

Reformed the food stamp system, replaced it with an upfront cash payment and to receive it you had to be in education, employment or training. Both ends of the political spectrum hated it- conservatives saw it as a handout and leftists felt that a payment of $1600 was inadequate for larger families.

Nixon dropped it by 1972, but it is speculated that he wanted it gone due to how costly it would be.

What did Nixon do for healthcare in 1971? (2)

Reformed health insurance

federalised medicaid for impoverished families PROPOSED

What did Nixon choose to reform in 1974 that seemed to oppose his neoliberal campaign rhetoric?

Insurance reforms

what 3 organisations were established in 1970?

Occupational safety and health administration (OSHA)

Environmental protection agency (EPA)

National oceanic and atmospheric administration (NOAA)

Between 1972-4 Nixon passed 4 environmental protection acts, what were they?

1972: Noise control act and marina mammal protection act

1973- endangered species act

1974- safe drinking water act

What was Nixon’s new economic policy as outlined in August 1971 and what effect did this have? (5)

Wages and prices were to be frozen

tax cuts

10% import tax

Dollar divorced from price of gold, undoes 1944 Bretton Woods system

It made his approval rating skyrocket, allowing him to win the 1972 election

How did the economy fluctuate under Nixon? (4)

He inherited a 3.3% unemployment rate from LBJ but there was also rising inflation

By the end of 1970 unemployment had risen by 6%

By 1974 inflation had hit 12.1%

OPEC make soil more expensive in response to the US’ support of Israel in Yom Kippur