Chapter 26 (1969-1988)

Chapter 26 Overview: The Conservative Turn ($1969-1988$)

• Fundamental Transformation: The two decades between $1969$ and $1988$ observed a radical shift in American politics, economics, and culture.

• End of the New Deal Coalition: The coalition that dominated politics for nearly four decades fragmented, allowing the Republican Party to emerge as the dominant national force.

• Rise of Ronald Reagan: Forged in his $1964$ campaign for Barry Goldwater, Reagan's conservatism built momentum through the $1970s$, capturing the presidency in $1980$.

• Key Factors Shaping the Turn:     * Economic crisis (stagflation) that traditional liberal policies could not resolve.     * Demographic shifts toward the "Sunbelt" (South and West).     * Growth of activist conservative Christianity known as the "Religious Right."     * Foreign policy failures, specifically the failure in Vietnam and the Iran hostage crisis.     * Cultural backlash against the liberal social changes of the $1960s$.

• Presidency Snapshots:     * Richard Nixon ($1969-1974$): Ended in the Watergate scandal, a constitutional crisis resulting in the first presidential resignation.     * Jimmy Carter ($1977-1981$): Weakened by stagflation, the Iran hostage crisis, and political instability.     * Ronald Reagan ($1981-1989$): Implemented tax cuts, deregulation, massive military buildup, and confrontation with the Soviet Union.

• Legacy: By the late $1980s$, conservatism had reshaped economic policy, foreign orientation, and political alignment, though rights movements (women's, gay, environmental) continued to achieve gains.

Nixon's Political Strategy and Domestic Policies

• The Southern Strategy: Nixon courted white Southern voters disenchanted with Democratic civil rights advocacy. Following the Civil Rights Act of $1964$, Lyndon Johnson famously remarked, "We have lost the South for a generation."

• Appealing to the "Silent Majority": Nixon targeted Americans uneasy with $1960s$ cultural changes, antiwar protests, and urban riots. He emphasized "law and order" and criticized Great Society programs and busing.

• Spiro Agnew: Nixon's Vice President, known for his aggressive criticism of the press and antiwar protesters.

• $1972$ Election: Nixon achieved one of the largest landslides in history, defeating Democrat George McGovern by an electoral vote of $520$ to $17$.

• Pragmatic Domestic Initiatives: Despite his conservative reputation, Nixon's policies were often moderate or progressive:     * Family Assistance Plan: A proposal for a guaranteed minimum income.     * Expansion of Social Security.     * Environmental Protection Agency (EPA): Established in $1970$.     * Clean Air Act ($1970$).     * Affirmative Action: Continued support for these programs to retain political support.

The Collapse of Bretton Woods and 1970s Economic Crisis

• The Bretton Woods System ($1944-1971$): Internationally, currencies were pegged to the U.S. dollar, which was convertible to gold at a rate of $\$35$ per ounce.

• Economic Strain: Expenses from the Vietnam War and Great Society programs increased federal spending without tax hikes, leading to inflation and a weakened dollar.

• Closing the Gold Window: On August $15, 1971$, Nixon suspended the dollar’s convertibility to gold, effectively ending the Bretton Woods system and allowing the dollar to "float."

• Wage and Price Controls: Nixon imposed these to combat rising inflation.

• Stagflation: Defined as simultaneous high inflation and high unemployment. Traditional Keynesian economics failed to address this, creating space for conservative economic theories.

• OPEC Oil Embargo ($1973$): Arab oil producers cut supplies to the U.S. in response to American support for Israel during the Yom Kippur War, quadrupling oil prices and worsening the recession.

Vietnam War: Vietnamization and Geographical Expansion

• Vietnamization: Nixon's plan to withdraw American troops ($540,000$ in $1969$ down to $24,000$ by $1972$) while training South Vietnamese forces to take over combat.

• Cambodia Invasion ($1970$): Nixon authorized secret bombings and an overt invasion to disrupt North Vietnamese supply lines. This sparked nationwide university protests.

• Kent State and Jackson State: Ohio National Guard troops killed four students at Kent State; two more were killed at Jackson State in Mississippi during antiwar demonstrations.

• The Pentagon Papers ($1971$): Leaked by Daniel Ellsberg to The New York Times, these classified documents proved the Johnson administration lied about the war's progress.

• New York Times v. United States ($1971$): The Supreme Court upheld the right to publish the Pentagon Papers, reinforcing press freedom.

• My Lai Massacre: Revelation by journalist Seymour Hersh in $1969$ of the $1968$ killing of approximately $500$ Vietnamese civilians by American soldiers. Lt. William Calley was convicted of war crimes.

• The End of the War: The Paris Peace Accords were signed in January $1973$. American military involvement ended, but in $1975$, the Fall of Saigon occurred as South Vietnam was overtaken by communist forces.

• Casualties: Approximately $58,000$ Americans died, with over $300,000$ wounded; Vietnamese deaths totaled between $2$ and $3$ million.

Nixon's Foreign Policy: Détente and Realpolitik

• Realpolitik: A policy strategy pursued by Nixon and National Security Advisor Henry Kissinger emphasizing power balance over ideology.

• Opening to China ($1972$): Nixon visited Beijing, meeting Mao Zedong and Zhou Enlai. This ended U.S. refusal to recognize the People’s Republic of China since $1949$ and "triangulated" global power against the Soviets.

• Détente with the USSR: An easing of Cold War tensions leading to:     * SALT I (Strategic Arms Limitation Treaty, $1972$): Limited strategic weapons.     * Anti-Ballistic Missile (ABM) Treaty: Restricted defensive missile systems.

• Middle Eastern Diplomacy: During the Yom Kippur War ($1973$), the U.S. provided aid to Israel while pressuring for a ceasefire.

• Shuttle Diplomacy: Kissinger’s travel between Israel, Egypt, and Syria to lay the foundation for peace.

The Watergate Scandal and Nixon's Resignation

• The Break-in (June $1972$): Five men were caught at the Democratic National Committee headquarters in the Watergate complex. They were linked to the Committee to Re-elect the President (CRP).

• The Cover-up: Nixon administration officials engaged in a massive effort to hide White House involvement.

• Investigation: Washington Post reporters Bob Woodward and Carl Bernstein, aided by the source "Deep Throat" (Mark Felt), uncovered administration wrongdoing.

• The Tapes: Senate hearings revealed Nixon had taped Oval Office conversations. He refused to release them until the Supreme Court ruled unanimously in United States v. Nixon ($1974$).

• Resignation: Faced with certain impeachment for obstruction of justice, abuse of power, and contempt of Congress, Nixon resigned on August $9, 1974$.

• President Gerald Ford: Succeeded Nixon (after Spiro Agnew resigned for corruption) and pardoned him in September $1974$, which caused significant public outcry.

The Carter Presidency ($1977-1981$)

• 1976 Election: Jimmy Carter defeated Gerald Ford ($297$ to $240$ electoral votes) by emphasizing personal honesty and his "outsider" status.

• Economic Woes: Inflation hit $13\%$ by $1980$. Carter’s call for energy conservation (the "moral equivalent of war") was viewed as ineffective.

• Camp David Accords ($1978$): Carter’s major achievement, brokering peace between Anwar Sadat (Egypt) and Menachem Begin (Israel).

• Iran Hostage Crisis: Following the $1979$ Iranian Revolution, militants seized the U.S. Embassy in Tehran, holding $52$ Americans for $444$ days. A failed rescue attempt in April $1980$ resulted in a helicopter crash and humiliated the U.S.

• 1980 Election: Reagan asked, "Are you better off than you were four years ago?" and won decisively ($489-49$ electoral votes). The hostages were released on Reagan's inauguration day.

The Rise of the New Right and the Religious Right

• The Religious Right: Formerly non-political conservative Christians mobilized due to:     * Roe v. Wade ($1973$) legalizing abortion.     * Supreme Court decisions ending school prayer (Engel v. Vitale, Abington v. Schempp).     * The Bob Jones University case regarding the tax-exempt status of segregated schools.

• Moral Majority ($1979$): Founded by Jerry Falwell to organize religious conservatives.

• STOP ERA: Phyllis Schlafly led the successful campaign to block the Equal Rights Amendment, arguing it threatened traditional family roles.

• Sunbelt Migration: A population shift from the "Rustbelt" (Northeast/Midwest) to the "Sunbelt" (South/West) driven by lower taxes, fewer unions, and air-conditioning technology.

• Tax Revolts: California’s Proposition 13 ($1978$) capped property taxes and sparked nationwide anti-government sentiment.

Reaganomics: The Economic Revolution

• Supply-Side Economics: Championed by Arthur Laffer, this theory argued tax cuts would stimulate investment and increase overall revenue.

• Economic Recovery Tax Act ($1981$): Also known as Kemp-Roth, it cut income taxes by $25\%$ over three years; top rates eventually fell from $70\%$ to $50\%$, and later to $28\%$ by $1986$.

• Federal Deficits: Tax cuts combined with massive military spending caused the national debt to triple and annual deficits to exceed $\$200$ billion.

• Deregulation: Reduced oversight of banking, which eventually led to the Savings and Loan (S&L) crisis ($\$130$ billion taxpayer cost).

• PATCO Strike ($1981$): Reagan fired $11,300$ striking air traffic controllers for violating federal strike bans. This drastically weakened organized labor and union membership (fell from $23\%$ in $1980$ to $16\%$ in $1990$).

Reagan’s Cold War Policy and the Iran-Contra Affair

• Reagan Doctrine: Committed to supporting anti-communist resistance groups worldwide (e.g., Mujahideen in Afghanistan, Contras in Nicaragua).

• Strategic Defense Initiative (SDI): Nicknamed "Star Wars," a proposed space-based missile shield that never became functional but cost billions.

• Iran-Contra Affair ($1985-1987$): Administration officials secretly sold weapons to Iran to fund the Nicaraguan Contras, violating the Boland Amendment/Congressional bans. Oliver North was the public figurehead of the scandal.

• End of the Cold War: Mikhail Gorbachev took power in $1985$ and introduced Glasnost (openness) and Perestroika (restructuring).

• INF Treaty ($1987$): The first treaty to actually eliminate an entire category of nuclear weapons.

• The Berlin Wall: Fell in November $1989$; the Soviet Union dissolved in December $1991$.

Continued Rights Revolutions

• Women's Rights: Title IX ($1972$) expanded educational/athletic access. Pregnancy Discrimination Act ($1978$) and landmark sexual harassment rulings (Meritor Savings Bank v. Vinson) were established.

• Gay Rights and AIDS: The AIDS epidemic killed tens of thousands; activist group ACT UP fought for research funding after the Reagan administration's initially slow response.

• Environmentalism: Gains continued despite Reagan's deregulation, spurred by crises like Three Mile Island ($1979$) and Love Canal ($1978$).

• Disability Rights: The Americans with Disabilities Act was passed in $1990$, building on $1980s$ advocacy.

The 1988 Election and Reagan’s Legacy

• 1988 Election: George H.W. Bush defeated Michael Dukakis ($426$ to $111$ electoral votes), pledging "no new taxes" and using the controversial Willie Horton ad.

• Economic Impact: Reagan's era saw recovery after $1983$, but income inequality increased; the top $1\%$ saw dramatic gains while wages for ordinary workers stagnated.