The Nixon administration faced several major problems including stagflation, which resisted traditional economic solutions and led to shortages. Vice President Spiro Agnew resigned due to tax evasion and bribery charges, requiring Nixon to appoint Gerald Ford as the new vice president. The Watergate scandal emerged involving a break-in at the Democratic headquarters and Nixon's attempted cover-up, leading to his resignation in 1974 as impeachment loomed. Upon taking office, President Ford granted Nixon a controversial pardon that was unpopular but aimed to unify the nation.

1. Problems for the Nixon Administration
A: Stagflation– high inflation and a recession at the same time
1. unemployment was high; prices were high
2. previously believed to be impossible
B: Attempts to solve stagflation
1. quit deficit spending (made it worse)
2. increase taxes (made it worse)
3. decrease money in circulation to stop inflation (made worse)
4. wage and price controls
a. created food and gasoline shortages

2. C. Vice President Spiro Agnew resigns
1. for tax evasion and taking bribes
2. Nixon appoints Gerald Ford as the new VP

3. D: Watergate
1. broke into democratic headquarters;
--stole dems. Re-election strategy
2. lied about being connected with break-in
3. Woodward and Bernstein (reporters) uncovered Nixon
connection
4. refused to give secret recordings of conversations to
investigators
5. finally resigns(1974) due to impeachment threats

4. D: Watergate
1. broke into
democratic headquarters;
--stole dems. Re-election
strategy

5. 2. lied about being connected with break-in

6. 3. Woodward and
Bernstein (reporters)
uncovered Nixon
connection
4. refused to give secret
recordings of
conversations to
investigators

7. 5. finally resigns(1974) due to impeachment
threats

8. Gerald Ford becomes President
I: Pardons Nixon from any wrong
doing
A: figures it will help heal the
nation
B: very unpopular decision with
Americans
1. probably costs him the
election of 1976