What happened in the 1970s and 1980s that fundamentally altered most americans' expectations of the federal government?

The 70s and 80s saw the United States go through several incidents which shook the foundation of the Federal Government.

The unpopular Vietnam war had dragged on despite, hundreds of protests all over the country. By all accounts, the United States eventually lost the war and suffered numerous losses.

In between, the American government suffered from an Oil shortage due to OPEC embargo, raising the prices of fuel and bringing the country to a standstill.

The early end of the 70s saw the Iranian revolution take place, which overthrew the American backed Dictator, Reza Shah and the country entered the 80s with a crippling economic downturn.