1. ■Essential Question:
–Why did the economic & foreign
policies of Ford & Carter fail to
meet the needs of America in
the late 1970s?
■Chapter 30 pg 1093-1112
2. ■Essential Question:
–Why did the economic & foreign
policies of Ford & Carter fail to
meet the needs of America in
the late 1970s?
3. The 1970s: A Crisis in Confidence
■The “overextended society” of the
1970s was defined by:
–Low economic growth, high
prices, & rising unemployment
–Distrust of the government due
to the Watergate scandal
–“Passionless presidents” who
failed to project clear leadership
–An end of Nixon-era détente &
resumption of Cold War rivalries
5. ToEnergy and the a when Egypt
punish Israel’s to Economy
The fuel shortage ledallies200% increase
in theSyria attacked against heating
& price of gas & home Israel
■In the 1970s, 2 great oil shocks
Led to worst recession since Depression
hurt the U.S. economy:
–In 1973, the Arab members of
OPEC initiated a 5% cut on
production & an embargo
against the U.S.
–The Iranian Revolution in 1979
cut off oil & led to another gas-
shortage & soaring interest rates
6. The Oil Shocks:
Price Increases of Crude Oil & Gasoline
The OPEC oil embargo
Iranian Revolution
7. The Search for an Energy Policy
■These oil shocks forced the U.S.
Mandated gas mileage
requirements, speed
to realize its dependency on other
nations for oil & led to price controls
limits, & action:
on domestic oil
Nuclear plants & the EPA to oversee
–Nixon pipeline
Alaskan oil
formed
industry’s environmental impact
–The new Dept of Energy (1977)
emphasized conservation &
domestic energy production
–Still…U.S. oil imports rose 50%
from 1973 to 1979
8. A Troubledwages did notEconomy
Workers’ American
keep up with rising prices
■ The 1970s economy grew stagnant:
–Unemployment grew to rose 200%
Milk & hamburger prices 9%
A stagnant STAGFLATION High
–Heavy industry jobs fell inflation
economy due to
Car prices rose 72% Bread prices rose 400%
outsourcing & foreign competition
■ 1970s experienced huge inflation:
–Due to Vietnam deficit spending,
global food shortage, oil shocks
Neither Ford nor Carter could stop
–Massive price increases led to a
“stagflation;” Carter’s policies actually
5.5% decreaserates up to 20%
drove interest in “real income”
for average Americans
10. The Ford Administration
■Gerald Ford failed to restore
public confidence after Watergate:
–Ford pardoned Nixon for any
crimes he may have committed
–He revealed a number of past
CIA assassination attempts &
appointed George Bush to
reorganize the CIA
–Vetoed 39 Great Society-style
bills initiated by Congress
11. The 1976 Campaign
■In 1976, dark-horse Jimmy Carter
won the Democratic nomination &
campaigned as an outsider, an
honest man, with fresh leadership
■Carter won a narrow victory due
to social class & racial factors:
–Affluent, well-educated,
suburban voters chose Ford
–Socially & economically
disadvantaged voted for Carter
12. Ford’s foreign policy blunder during the
TV debates in 1976: “There is no Soviet
domination of Eastern Europe”
13. Disenchantment with Carter
■Carter entered office with no clear
political philosophy or vision:
In 1979, Carter gave the “national malaise”
–Deregulated the airline industry
speech in which he discussed the importance
of conservinglowered prices to blame
energy but seemed
whichcreating a “crisis in confidence”
Americans for
–But…his attempts to reform
welfare & Social Security failed
–He had no remedy for soaring
inflation, interest rates, & bank
failures that hurt the economy
15. A Declining Superpower
■America’s international dominance
declined sharply in 1970s due to:
–Americans’ increasing desires
to avoid “another Vietnam”
–The War Powers Act forced the
president to consult with
Congress before sending troops
–The escalating military costs &
deficit spending made sustaining
the Cold War impossible
16. Foreign Policy & Human Rights
■Carter focused his foreign policy
on a commitment to human rights:
–Spoke out against repressive
regimes in Latin America &
apartheid in South Africa
–Reformed the CIA to operate
“within the law” (but only briefly)
–Negotiated the return of the
Panama Canal to Panamanians
17. Foreign Policy & Human Rights
■In Nov 1977, Egyptian leader
Sadat made an appeal with Israel
to settle the October War of 1973
■Carter invited Egyptian leader
Sadat & Israeli leader Begin to
the U.S. to negotiate terms
■The Camp David accords in 1979
led to a peace treaty between
Egypt & Israel, but alienated other
Arab nations
19. The Cold War Resumes
■During the Carter years, the
Cold War rivalry between the
U.S. & USSR widened due to:
–A new arms race as the U.S.
adopted new MX missiles &
Trident submarines
–SALT II failed to make lasting
arms reduction
–Increased U.S.-Sino relations
put the USSR on the defensive
21. The Cold War Resumes
■Détente ended when the USSR
invaded Afghanistan in 1979
■The U.S. interpreted the attack as
a move to take the Middle East &
responded with:
–Economic embargo of the USSR
–Boycott of the limit nuclear arms
Carter hoped to Moscow Olympics
& advance human rights, but found
–Aid to the a heightened Cold War
himself in Afghani resistance
23. The Iranian Hostage Crisis
■The Camp David victory was offset
by the 1979 Iranian hostage crisis:
–Exiled Islamic fundamentalist
Ayatollah Khomeini led a coup
against U.S.-backed the shah
–When Carter allowed the shah to
enter the U.S. for medical aid,
irate mobs in Tehran took 52
hostages from the U.S. embassy
24. Quest for Peace in the Middle East
■Carter’s attempts at diplomatic,
military, & economic threats failed
to bring a return of the hostages
–In 1980, Carter approved a
rescue mission that was aborted
after 2 helicopters crashed
–The perceived blunders &
inability of Carter to end the
hostage crisis hurt Carter in his
re-election bid in 1980
26. A Failed Presidency
■Carter’s failures with inflation,
Iran, & Afghanistan overshadowed
his foreign policy victories with the
Panama Canal & the Middle East
Carter’s 1980 approval rating was 23%
■The failures of Johnson, Nixon,
Ford, & Carter led to a desire
among Americans for a strong
leader who could face both
domestic & foreign challenges
