QW 5-12-11 Gas prices are

reaching new highs. What do you think people could do to stop this? Is there anything that the government can do?

Difficulties in the 70s During the 1970s, the

economic prosperity of the 1950s and 1960s began to disappear.

Economic troubles began under Johnson. deficit spending to fund the Vietnam War and the Great Society program without raising taxes.

created inflation- increase in prices, devalue of the dollar

StagflationOne of the biggest

problems facing Nixon was a weak economy.

When inflation and unemployment increased in the 70s this was know as…During 1967 & 1973, inflation

& unemployment increased. This is known as STAGFLATION. Stagflation had several causes. Unemployment increased because trade competition increased. This made it harder for Americans to sell their goods overseas

Stagflation The nation also

had trouble finding jobs for millions of baby boomers who reached working

Oil & Gas Shortage In 1973 OPEC announced an embargo of

petroleum to countries that supported Israel. The price of a barrel of crude oil increased

from $3 in 1973 to $30 in 1980. 2009 it was over $100 per barrel After OPEC raised its prices, the price controls

created an oil shortage. Some states implemented gas rationing. Only

people with an odd-numbered license plate could purchase gas on an odd-numbered day

Helsinki Accords Ford continued the foreign policy of

Nixon. In August 1975, Ford met with leaders

of NATO and the Warsaw Pact to sign the Helsinki Accords. parties recognized the borders of Eastern

Europe established at the end of World War II.

The Soviets promised to uphold certain basic human rights but later went back on this promise

President Ford On September 8, 1974, President Gerald Ford

granted a full pardon to Richard Nixon. Ford’s approval rating plunged from 71 percent

to 50 percent. Helsinki Accords Ford continued the foreign

policy of Nixon. In August 1975, Ford met with leaders of NATO

and the Warsaw Pact to sign the Helsinki Accords. parties recognized the borders of Eastern Europe

established at the end of World War II. The Soviets promised to uphold certain basic human

rights but later went back on this promise

PRESIDENT CARTER Jimmy Carter In the election of 1976, Democratic candidate Jimmy

Carter won with 50.1 percent of the popular vote. Carter was seen as a person of high morals and an

upstanding personality. Disenchantment with Carter

Carter entered office with no clear political philosophy or vision: Deregulated the airline industry which lowered prices

But…his attempts to reform welfare & Social Security failed

He had no remedy for soaring inflation, interest rates, & bank failures that hurt the economy

Disenchantment with Carter Carter entered office with no clear

political philosophy or vision: Deregulated the airline industry which lowered prices

But…his attempts to reform welfare & Social Security failed

He had no remedy for soaring inflation, interest rates, & bank failures that hurt the economy

President Carter President Carter focused most of his

attention on the energy crisis. His efforts were unsuccessful.

Used “Fireside Chats” to communicate with people

Energy Conservation Carter proposed a national energy program

to conserve oil and to promote the use of coal and renewable energy sources.

He asked Americans to reduce energy consumption, which most Americans ignored.

What historic peace treaty between Israel & Egypt was initiated by Carter?

Human Rights

“Everyone has the right to a peaceful coexistence, the basic personal freedoms, the alleviation of suffering, and the opportunity to lead a productive life”-Jimmy Carter

Expand the personal freedom of the US to other parts of the world

Panama Canal-return the area to Panama completely in 1999

David Accords

In 1978 Carter helped get a historic peace treaty, known as the Camp David Accords, signed between Israel and Egypt.

Most Arab nations in the region opposed the treaty, but it marked the first step toward peace in the Middle East.

SALT II○ Carter signed a nuclear arms treaty called

SALT II with the Soviets. The treaty was opposed by the Senate.

○ But when the Soviets invaded Afghanistan, Carter refused to fight for the treaty. It was never ratified.

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 Moscow OlympicsAid to the Afghani resistance

When were the hostages finally freed? Carter hoped to limit nuclear arms &

advance human rights, but found himself in a heightened Cold War

Conflict in Iran In 1979 Iran’s monarch, the

Mohammad Reza Shah Pahlavi, was forced to flee, and an Islamic republic was declared. The Shah was supported by the United

States.

American Hostages

The religious leader Ayatollah Khomeini distrusted the U. S. Revolutionaries stormed the American embassy in Tehran and held 52 Americans hostage.

The hostages would not be released until Carter’s last day in office, some 444 days in captivity.

Hostages Freed The hostages were freed just minutes

after Ronald Reagan was inaugurated president on January 20, 1981!

Carter

Carter image as being upstanding and moral helped him win election

Carter would devote most of his agenda to fixing the economy

Carter He tried to increasing

government spending to end recession

He then tried reducing taxes

Then reducing money supply and raising interest rates

Created the Department of Energy to reduce energy consumption…

None of this fixed the economy

Carter His foreign policy was

marked by trouble in the Middle East

When a group of Islamic terrorist took 52 Americans hostage and Carter failed to gain their release it would forever mark his foreign policy and cost him reelection