Nixon's "New Federalism" ideology was created in response to Johnson's previous "Great Society" programs in which Johnson exercised a large federal government. Nixon gave more power to the states and local governments with "New Federalism". Nixon gave financial support to state and local governments. Ultimately, Nixon was not able to continue the state and local government funding due to his dismantling of a few social programs implemented by Johnson
In 1969 Richard Nixon created the Family assistance plan which supported families of 4 with $1,600 of federal payment annually. He also made the unemployed forced to accept any possible work. However, the liberal legislators in the senate did not pass this reform.
Busing Controversy, and Battle over Supreme Court
Nixon was elected on a dual promise. Which was: to get out of Vietnam, and to halt the decisiveness inside America, that the war had created. In only his first term, Nixon worked to success in both. Nixon worked to stop liberal protesters. To achieve this, Nixon used the illegal route. He ordered wiretaps from the democratic "Watergate office". Also, Nixon used the International Revenue Services to audit the tax reforms of antiwar, and Civil Rights activists. Additionally, Nixon ridiculed the Liberal media which he claimed to be negative.
OPEC and Stagflation
Nixon attempted to attract southern conservative democrats by slowing the desegregation process. The south shifted from Democratic to Republican due to the Democratic party becoming too liberal. Nixon won over many democrats, and George Wallace voters in the south. Nixon attempted to reverse civil rights policies. However, these attempts violated the supreme courts "Brown Vs Board of Education" ruling.
Richard Nixon fought to put the supreme court in a conservative direction. Four justices retired including supreme court chief justice Earl Warren. Nixon replaced these justices with fully conservative justices. However, the supreme court did not always take Nixon's side. For instance, Nixon was against the integration of school buses. But in the case of Swann v. Charlotte-Mecklenburg, the supreme court ruled in favor of busing integration.
Between 1967 and 1973 the United States was faced with unemployment and inflation which was called "Stagflation". OPEC was a middle-east based organization which regulated oil sales to the USA. They refused to sell oil to the United States due to the United States' continuous support of Israel. A year later they began to sell oil to the USA again at quadruple the price. This increased inflation. Nixon attempted to stop inflation by reducing the amount of money in circulation, however, was not successful and the country was still in a recession.