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Nixon attempted to raise taxes and cut the budget however congress refused to go through with it. He also tried to lower the amount of money in circulation by urging interest rate increase. This did nothing besides sending the country into a mild recession. In 1971 the president turned to price and wage controls to stop inflation he froze workers payments and business prices for 90 days. Inflation eased but the recession continued.

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Stagflation is a situation where inflation numbers are high. LBJ's policy to fund the war and social programs had a part in causing Stagflation. Increased competition for international trade and a flood of new workers including baby boomers caused stagflation as well. Another cause was our countries dependence on foreign oil. OPEC kept raising prices because they had known about our inflation problem and when they kept selling in 1974 their prices rose 400 percent. The increased prices slowly made inflation worse.

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Nixon tried to solve another civil rights initiative when school had segregated busing systems. In 1971 the supreme court ruled in swann v. Charlotte-Mecklenburg Board of education to end racial segregation through school buses.

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To attract white voters Nixon purposely slowed the desegregation efforts in the country. Just so he could make his point to clear his views on Civil Rights. He stated "There are those who want instant integration and those who want segregation forever. I believe we need to have a middle between those two extremes."

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The south had always been democratically strong but ever since 1968 many democrats had disillusions about their party. In their eyes there party had grown too liberal.

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Nixon tried to attract southern conservative Democrats by appealing to their unhappiness with federal desegregation policies and a liberal supreme court

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While Nixon fought with both houses of congress he also fought the Anti War Movement as well. With his promise to end the war and mend the divisiveness. He began the Law and order policies and used the full resources of his office and sometimes illegally. Nixon and members of his staff ordered wiretaps of many left wing individuals and the democratic party offices at Watergate Office building. Nixon began building a personal enemies list of Americans who the administration would harass.

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Nixon focused on his domestic policy to dismantle a lot of Great Society Programs.

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Nixon started by introducing New Federalism the main point in this was to downsize the Federal Government.

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He strongly believed that LBJ's Great Society Programs gave the Federal
Government too much power. The New Federalism was to distribute that power evenly to prevent the "Big Government" from abusing power. By distributing that power to the State Governments

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Under this state and local governments can spend their federal dollars however they saw the limitations this bill eventually became a law in 1972.

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Nixon represented the plan in conservative terms as a program that would reduce the role of the federal government and make welfare recipients responsible for their own lives.

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Under the FAP every family of at least four with little to no outside income would receive $1600 a year and $4000 a year in supplemental income.

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Nixon supported a number of congressional measures to increase federal spending for a few social programs. Nixon then eventually increased Social Security, Medicare, Medicaid payments, and made Food Stamps more accessible.

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Nixon then tried to dismantle social programs. For example he tried to the Jobs Corps Program that provided job training for the unemployed in 1970. He vetoed a bill for House and Urban Development and while being confronted by laws he did not agree with; he eventually started impoundment. Nixon impounded around 15 billion dollars in 1973 and negatively affected for more a 100 social programs. Federal courts eventually released the impounded amount and ruled the impoundment method unconstitutional.