9.2 Domestic Policies: New Federalism and Economic Challenges

New Federalism aimed to shift power from federal to state governments, advocating for smaller federal government and increased state autonomy. This approach believed state and local governments were better equipped to address local issues and needs.

The Nixon era faced economic challenges like inflation, unemployment, and an energy crisis. Nixon's domestic policies included establishing the EPA and launching the War on Drugs, while social tensions persisted around civil rights and women's issues.

New Federalism and Domestic Policies

New Federalism and government relations

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• New Federalism aimed to shift power from federal to state and local governments advocated for smaller federal government and increased state autonomy
• Believed state and local governments better equipped to address local issues and needs
• Devolution transferred power and responsibility from federal to state and local governments
  • Block grants provided federal funds to states with fewer restrictions on spending
• Reduced federal regulations and oversight on state affairs
• Increased competition among states for federal resources and funding (grants, subsidies)

Economic challenges of Nixon era

• Inflation caused rising prices and decreased purchasing power of the dollar due to increased government spending, rising energy costs, and abandoning the gold standard
• Unemployment resulted from economic slowdown and rising joblessness particularly affecting blue-collar workers and manufacturing sector (automotive industry)
• Energy crisis triggered by 1973 OAPEC oil embargo in retaliation for U.S. support of Israel during Yom Kippur War
  • Oil shortages, price hikes, and long gas station lines exposed U.S. dependence on foreign oil and need for energy independence (alternative energy sources)

Nixon's domestic policy initiatives

• Environmental Protection Agency (EPA) established in 1970 to consolidate federal environmental responsibilities tasked with protecting human health and environment through regulation and enforcement
  • Oversaw implementation of Clean Air Act and Clean Water Act to reduce pollution and improve air and water quality
• War on Drugs launched in 1971 to combat drug abuse and trafficking increased federal funding for drug control agencies and imposed stricter penalties for drug offenses
  • Controversial due to disproportionate impact on communities of color (African Americans, Hispanics) and limited effectiveness in reducing drug use and addiction

Social tensions of early 1970s

• Continuing civil rights struggle included school desegregation and busing controversy as attempts to integrate schools faced resistance from white communities
  • Affirmative action programs aimed to address racial inequalities in education and employment (college admissions, hiring practices)
  • Ongoing fights against housing discrimination (redlining) and for voting rights (Voting Rights Act)
• Rise of women's movement, known as second-wave feminism, gained momentum in 1960s and 1970s focusing on reproductive rights, equal pay, and gender discrimination
  • Title IX of Education Amendments of 1972 prohibited gender discrimination in federally funded educational institutions (sports programs)
  • Roe v. Wade (1973) Supreme Court decision legalized abortion nationwide
  • Equal Rights Amendment (ERA) proposed to guarantee legal gender equality but ultimately failed ratification