32.

3
F O R D A N D C A RT E R
 26. The Cold War and conflicts in Korea and
Vietnam influenced domestic and international
politics.
 FORD AND CARTER CRASH COURSE
 FORD AND CARTER

By 1970s boom
years of economy
gave way to decade
of hard times.
A MIGHTY ECONOMIC MACHINE SLOWS

Economic troubles began in mid-60s

Johnson increased deficit spending.
Inflation-rise in the cost of goods.
Rising costs of new materials due to
greater competition was a cause
Rising cost of oil
 ORGANIZATION OF PETROLEUM
EXPORTING COUNTRIES

(OPEC) decided to use oil as a political and

economic weapon.
US support of Israel in 1973 Yom Kippur
War was the reason.
Embargo-OPEC stopped shipping oil to the
United States.
OPEC also raised cost of crude oil 70%.
Increase accelerate inflation.
 A STAGNANT ECONOMY

Industry faced increasing

international competition.
1971-first time since 1889-US
imported more goods than it
exported.
By 1985-Americans were borrowing
money from foreigners then they
were lending abroad.
 A STAGNANT ECONOMY

These factors forced many factories

to close.
Millions lost their jobs.
Stagflation a combination of rising
prices and economic stagnation.
Increase spending help end
recession, but it would increase
inflation.
 STAGFLATION
 A STAGNANT ECONOMY

Raising taxes might slow inflation,

but it would keep the economy in
recession.
Nixon decided to control inflation
Government moved to cut spending
and raise taxes.
Nixon resigned in 1974-inflation was
still high
 FORD TAKES OVER

Ford considered decent and honest

thought not particularly dynamic.
Ford Pardons Nixon-September 8,
1974 Ford pardoned Nixon.
Ford insisted he was acting in public
interest.
Fords approval ratings plunged.
 FORD PARDONS NIXON
FORD TRIES TO WHIP INFLATION

1975 worst recession since

Great Depression.
Unemployment at 9%.
 WIN WHIP INFLATION NOW

Ford urged Americans to cut

back on their oil and gas
consumption.
Undertake energy-conserving
measures.
Plan failed.
 FORDS FOREIGN POLICY

Ford continued Nixons

strategy.
Kissinger stayed as Secretary
of State.
 HELSINKI ACCORDS

Parties recognized the borders of Eastern

Europe established at the end of WWII.
Soviets promised to uphold basic human
rights including right to move national
borders.
Subsequent failures of Soviets to uphold
human rights turned Americans against
dtente.
 HELSINKI ACCORDS

May 1975- Cambodia seized

Mayaguez-American Cargo ship.
Ford called it an act of piracy and
sent US marines.
Cambodia released the crew
before Marines arrived.
 ELECTION OF 1976

Americans were
pessimistic about the
future.
Ford ran against Jimmy
Carter
1976 ELECTION
 JIMMY CARTER

Jimmy Carter was a political outsider. He

had no national political experience.
Promised to restore morality and honesty
to government.
Moral and upstanding image that attracted
most supporters.
Carter won a narrow election.
CARTER BATTLES THE ECONOMIC CRISIS

Carter devoted much of his

domestic agenda to fixing the
economy.
Increased government spending
and cut taxes.
Inflation surged in 1978.
CARTER BATTLES THE ECONOMIC CRISIS

Delayed the tax cuts and

vetoed the spending
programs.
Raised interest rates
Main focus was the energy
crisis.
 A WAR AGAINST CONSUMPTION

Dependence on foreign oil was

most serious economic
problem.
Proposed national energy
program to conserve oil and
promote coal and solar power.
 DEPARTMENT OF ENERGY

Created by Congress
Urged Americans to make personal
sacrifices.
Many ignored his suggestions
Many business leaders urged President and
Congress to de-regulate the oil industry.
Regulating combined with OPECs price
increases, helped create energy and crisis
of the 1970s.
 DEPARTMENT OF ENERGY

Carter agreed to deregulate but insisted

on windfall profits tax to prevent oil
companies from overcharging consumers.
Carters plan did not solve the problem.
1979 instability in Middle East produced
a second major fuel shortage.
 MALAISE SPEECH

Carter made a speech that was a

bleak assessment of natural
condition.
Many American interpreted
speech as Carter blaming the
people for his failures.
MALAISE SPEECH
CARTERS LEADERSHIP PROBLEMS

Carters problems lay in his inexperience

and inability to work with Congress.
Carter made little effort to reach out to
legislative leaders.
He offered no unifying theme for his
administration.
1979 Carters popularity had dropped
below that of Nixons
 MORALITY IN FOREIGN POLICY

Andrew Young- first African-American

ambassador to the United Nations.
Carters commitment to human
rights was absolute.
Carter put the principles in practice
in Latin America.
 MORALITY IN FOREIGN POLICY

He moved to give Panama control of the

Panama Canal. (US transferred Control
December 31, 1999)
Carter signaled out Soviet Union as a
violator of human rights.
Soviet troops invaded Afghanistan in
December 1979.
Carter responded by boycotting in 1980
summer Olympics in Moscow.
TRIUMPH AND FAILURE IN MIDDLE EAST

Camp David Accords-1978

Israel and Egypt
Carters greatest triumph.
Historic peace.
Other Arab nations opposed the
treaty.
 CAMP DAVID ACCORDS
TRIUMPH AND FAILURE IN MIDDLE EAST

Carter encountered crisis in

Iran.
The Shah, long supporter of
US- Jan. 1979 protestors
forced him to flee.
 AYATOLLAH KHOMEINI

New religious leader distrusted the US.

November 1979 revolutionaries took 52
Americans hostage.
Carter administration unsuccessfully tried
to get them released.
April 1980 failed rescue mission.
Carters inability to free them cost him
support in 1980 Presidential election.
 IRAN HOSTAGE CRISIS