2. I. Domestic PoliciesI. Domestic Policies A.New Federalism 1. Nixon’s first goal-decrease the size of the federal gov’t that LBJ built up. 2.New Federalism-give power back to state and local gov’t. a. revenue sharing-state and local gov’t can use federal $$ how they want instead of being told where to spend it. b. Mixed results

3. B. Nixon’s 1972 Re-Election Strategy 1.Nixon (Republican) tries to appeal to Southern Democrats upset with desegregation policies. (Many democrats were divided on civil rights issues) 2. How? a.Promises a Supreme Court Justice from the South b.Slows integration of schools and busing 3. Success-Nixon wins the South (49/50 states)

4. III. Economic IssuesIII. Economic Issues A.Stagflation-high unemployment and high inflation 1.Causes a.LBJ’s programs-$$$$ b.Baby boomers need jobs c.Foreign oil dependency

5. 1.US supports Israel during a war in the Middle East in 1973 2.OPEC (Org. of Petroleum Exporting Countries) cut off oil to the US for a year, then quadrupled prices in 1974 -Nixon tried to raise taxes and interest rates plus freeze wages and prices, but none of this stopped Stagflation

6. II. Foreign PolicyII. Foreign Policy A.Nixon and Kissinger promote Realpolitik (political realism)-deal with the most powerful countries and forget the smaller ones 1. Abandons containment of Communism and implements détente-easing of Cold War tensions

7. a.Nixon visits China in 1972 -eased tensions and established trading practices and other agreements b.Nixon visits Moscow -signs the SALT I Treaty-limits the number of long range missiles each country could produce.