Chapter 24 Section 3

The Ford and Carter Years

Ford Travels a Rough Road

President Gerald Ford urged Americans to put Watergate behind them

“Our long national nightmare is over”

The bad economy still persisted

Ford’s policies offered little relief

“A Ford, Not a Lincoln”

Ford seemed likable and honest

Openly admitted his limitations remarking he is a “Ford not a Lincoln”

“A Ford, Not a Lincoln”

September 8, 1974- Ford pardoned Nixon

An attempt to move the country beyond Watergate

This cost Ford public support

Ford hoped to win support back by fixing the troubled economy

Ford Tries to “Whip” Inflation

Economy had worsened by the time Ford got to office

Inflation and unemployment continued to rise

OPEC had caused gas and heating oil prices to soar

Inflation went from 6% to 11%

Ford Tries to “Whip” Inflation

To fix the problem Ford promoted a program of massive citizen action

Called Whip Inflation Now (WIN) Called Americans to

cut use of oil and gas Plan fell flat because

no incentives were offered

Ford Tries to “Whip” Inflation

Ford then tried to curb inflation through a “tight money” policy Cut government

spending Encouraged the

Federal reserve Board to restrict credit through high interest rates

Triggered the worst recession in 40 years

Ford Battles the Congress

As Ford implemented his programs, he had to fight with a Congress intent on pushing its own economic agenda Called for a federal jobs

program to cut unemployment (8.5%)

Ford rejected plan Said pumping more

money into the economy would just increase inflation

Ford Tries to “Whip” Inflation

While in office only 2 years, Ford vetoed more the 50 pieces of legislation

His economic policies received mixed reviews Inflation dropped below

10% by 1975 Unemployment declined Held stagflation steady

Offered no lasting solutions

Ford’s Foreign Policy

Had little experience with foreign diplomacy

Relied heavily on Kissinger (secretary of state)

Pushed ahead with Nixon’s policy of negotiating with China and the Soviet Union

Ford’s Foreign Policy

1974- met with Brezhnev to discuss next round of arms talks

Traveled to Helsinki, Finland to discuss the future of east-west relations U.S. along with 35 other

nations signed Helsinki Accords

Promised greater cooperation between the nations of East and West Europe

Ford’s Foreign Policy

Had problems in Southeast Asia

Cambodia seized a U.S. merchant ship

Ford responded with massive military force

Massive air strikes against Cambodia and Marines to save the 39 crew members Cost the lived of 41

U.S. troops

Ford’s Foreign Policy

Most liked the show of strength

Critics argued that it cost more lives than it saved And he acted

without consulting Congress

Jimmy Carter Enters the White House

Ford won the Republican nomination for President in 1976

Had to fend of a powerful conservative challenge from former California governor Ronald Reagan

Jimmy Carter Enters the White House

Republicans seemed divided over Ford’s leadership due to his economic policies

Democrats confidently eyes the White House

Democrats nominated a nationally unknown peanut farmer and former Georgia governor- Jimmy Carter

1976 Election

People suspicious of Washington insiders due to Watergate

Jimmy Carter- a political outsider- seemed like a logical candidate Soft spoken Promised to restore

integrity to the Presidency

1976 Election

Carter and Ford squared off over inflation, energy, and unemployment

People tended to like Carter more for his personality and morality than his knowledge

1976 Election

Ford began campaign well behind in the vote

Was able to narrow the gap, but not close it

Carter wins a close election 40.8 million to 39.1

million

Georgia Comes to Washington

Carter brought a down to earth style to Washington Symbolized by

walking down Pennsylvania Avenue to the White House rather than ride in his limousine

Georgia Comes to Washington

Stayed in touch with the people with FDR style “fireside chats”

Held “phone-ins” so people could talk directly to the President

Failed to reach out to Congress in a similar way

Georgia Comes to Washington

Carter refused to play the “insider” game of compromise and deal making

Alienated himself from congressional members of his own party

Georgia Comes to Washington

Democrats often joined Republicans to sink Carter’s budget proposals and legislative agenda Including major

reform of the tax and welfare system

Carter’s Domestic Agenda

Carter focused on the country’s energy and economic crises

Had some success Could not bring the

U.S. out of its economic downswing

Confronting the Energy Crisis

Carter considered the energy crisis to be the nation’s biggest problem Largely caused by

reliance on foreign oil

Urged Americans to cut their consumption of oil and gas

Confronting the Energy Crisis

Presented Congress with more than 100 proposals on energy conservation and development

Representatives from oil and gas producing states resisted some of the proposals

Auto companies lobbies against gas rationing provisions

Confronting the Energy Crisis

Eventually developed the National Energy Act Placed a tax on gas

guzzling cars Removed price controls

on oil and gas produced in the U.S.

Extended tax credits for the development of alternative energy

Confronting the Energy Crisis

By 1979- U.S. dependence on foreign oil eased slightly Industries produced

more gas efficient cars & home heating systems

Citizens lowered thermostats & reinsulated homes

Economic Crisis Worsens

Summer 1979- Violence in the Middle East produces a major fuel shortage

OPEC announces another major price hike

Inflation soars from 7.6% to 11.3%

Economic Crisis Worsens

Carter implements voluntary wage and price freezes to slow inflation

Introduced spending cuts to reduce national debt

Lifted government controls from trucking, railroads and shipping industries to stimulate business

Raised interest rates to reduce the money supply

Economic Crisis Worsens

Nothing worked Carter’s scattershot

approach convinced many that he had no economic policy at all

Made a speech complaining that Americans had lost confidence Many Americans had

felt like he had given up

Economic Crisis Worsens

1980- inflation rose to 14%

American standard of living dropped from 1st to 5th

Carter’s approval rating plummeted 26% approval rating

Lower than Nixon’s worst approval rating

A Changing Economy

Economy changed from manufacturing jobs (cars companies) to service sector jobs (communications, transportation, and retail) Shift came due to the

development of the micro chip that allowed for cheap mass production

A Changing Economy

The shift left many out of work because high paying jobs required more education

Growing overseas competition cut into American markets Iron, steel, rubber, cars

Many workers had to be laid off

Many corporations went overseas to cut costs

Carter and Civil Rights

Carter took pride in his civil rights record

His administration included more women and African Americans than any before

However, due to other problems, civil rights issues did not have priority

Carter and Civil Rights

Courts turned against affirmative action

Supreme Court decision Regents of the University of California v. Bakke Said university’s

affirmative action policies were unconstitutional

Made to difficult to establish effective affirmative action programs

A Human Rights Foreign Policy

Carter thought a lot about human rights

Based his foreign policy on it

Rejected Realpolitik Didn’t want to

negotiate with foreign nations with bad behavior

Advancing Human Rights

Like President Wilson, carter wanted to use moral principles as a guide for foreign policy

Believed U.S. should commit itself to human rights throughout the world

Advancing Human Rights

He put this principle to practice Cut off military aid

to Argentina and Brazil

They had good relations to the U.S., but had imprisoned or tortured thousands of their own people

Advancing Human Rights

Many liked Carter’s idealism But began to worry His policies

undercut Nicaragua- a dictatorship-but an important anti-communist ally

Advancing Human Rights

Carter was inconsistent Supported

dictatorships in South Korea and the Philippines

Further criticized when he gave up ownership of the Panama Canal

Yielding the Panama Canal

U.S. had owned Panama canal since 1914

1977- U.S. promised to turn over control of the Panama canal to Panama on December 1, 1999

Congress approved the treaty

Yielding the Panama Canal

Public opinion divided 45% approved 42% opposed The treaty did bring about a warmer relationship

with Latin America

The Collapse of Detente

Détente at a high point when carter took office

Nixon and ford had eased tensions with the Chinese and Soviets

Carter’s insistence on human rights led to a breakdown in relations with the Soviets

The Collapse of Detente

Carter was alarmed at how the Soviets treated opposition in their own country This delayed a second

round of SALT talks Carter and Brezhnev

finally met in June 1979

Signed agreement known as SALT II

The Collapse of Detente

SALT II- put limits on the number of strategic weapons and nuclear missile launchers each side could produce

Senate didn’t like it Though it put the

U.SD. At a military disadvantage

The Collapse of Detente

December 1979- Soviets invade Afghanistan

Carter refused to fight for the passage of SALT II in the Senate as a consequence

The treaty died

Triumph and Crisis in the Middle East

U.S. became very conscious of troubles in the Middle East Ethnic, religious,

and economic conflict

Source of Carter’s greatest achievement and worst defeat

Camp David Accords

Egyptian President- Anwar el-Sadat and Menachem Begin meet at Camp David

Carter helped forge a peace between the 2 nations

First break in Mid-East hostilities since 1948

Camp David Accords

Summer 1978- After 13 days of negotiations- the 3 leaders reach the Camp David Accords Would work out the

issue of self rule for the Palestinians

End hostilities between Israel and Egypt

Camp David Accords

Based on these accords Israel would later

withdraw from the Sinai Peninsula-which it took from Egypt during a war

Egypt would be the first Arab nation to recognize Israel’s existence

Iran Hostage Crisis

Since 1950s- U.S. had been aiding Shah (king) of Iran We would have an

anti-communist ally Access to Iranian oil

Iran Hostage Crisis

Shah in Trouble by 1979 Corrupt Dictatorial Revolution breaks out

in 1979 Led by Muslim

religious leader Ayatollah Ruhollah Khomeini

Led rebels in overthrowing the Shah

Established a religious state

Based on strict obedience to the Qur’an

Iran Hostage Crisis

Carter allowed the Shah to enter the U.S. for cancer treatment

Angered revolutionaries

Took 52 hostages Demanded Shah be

sent back to Iran Carter refuses

Iran Hostage Crisis

Carter banned all trade with Iran

Severed diplomatic relations

Launched a failed attempt to rescue the hostages

Iranians collectively wet their pants when Ronald Reagan was elected President Released the hostages

on the day of Reagan’s inauguration