🧸US History – 1945 to Present Unit 10 – Ford & Carter: Economic & Foreign Challenges

Economic Landscape of the 1970s

• Stagflation gripped the US economy, a combination of high inflation and stagnant economic growth
  • Inflation rates reached double digits (11.3% in 1979)
  • Unemployment rose to 9% by mid-1975
• The 1973 oil embargo by OPEC led to a sharp increase in energy prices, contributing to economic woes
• The US dollar was taken off the gold standard in 1971, leading to fluctuations in its value
• Keynesian economic policies, which had dominated since WWII, were increasingly questioned
• Deindustrialization began as manufacturing jobs moved overseas to countries with cheaper labor (Japan, Taiwan)
• The environmental movement gained traction, leading to new regulations on businesses
• The rise of global competition challenged US economic dominance

Ford's Presidency: Domestic Policies

• Gerald Ford became president after Richard Nixon's resignation in August 1974
• Ford pardoned Nixon for any crimes he may have committed, a controversial decision
• Ford faced a Democratic-controlled Congress, limiting his ability to pass legislation
• The economy was Ford's primary focus, as he sought to combat inflation and unemployment
  • Implemented a "Whip Inflation Now" (WIN) program, urging voluntary measures to reduce inflation
  • Proposed tax cuts and spending reductions to stimulate the economy
• Ford vetoed numerous bills he saw as fiscally irresponsible, including a jobs program
• Continued Nixon's policy of détente with the Soviet Union and China
• Supported the Equal Rights Amendment (ERA) but later opposed it under pressure from conservatives

Ford's Foreign Policy Approach

• Ford continued Nixon's policy of détente, seeking to ease tensions with the Soviet Union
  • Signed the Helsinki Accords in 1975, recognizing post-WWII borders and promoting human rights
  • Continued Strategic Arms Limitation Talks (SALT) with the Soviets
• Supported Indonesia's invasion of East Timor in 1975, which led to a brutal occupation
• Faced challenges in Southeast Asia after the fall of Saigon and end of the Vietnam War in 1975
  • Evacuated US personnel and some Vietnamese refugees during the fall of Saigon
  • The Khmer Rouge took power in Cambodia, leading to a genocidal regime
• Ordered the rescue of the SS Mayaguez, a US merchant ship seized by Cambodia, in one of his last acts as president
• Maintained US support for Israel, while also seeking to improve relations with Arab states

Carter's Rise to Presidency

• Jimmy Carter, a former governor of Georgia, won the 1976 presidential election as a Washington outsider
  • Campaigned on a platform of honesty, morality, and reforming the government after Watergate
  • Narrowly defeated incumbent Gerald Ford, winning 297 electoral votes to Ford's 240
• Carter's background as a peanut farmer and his Southern Baptist faith shaped his public image
• Promised to restore trust in government and to prioritize human rights in foreign policy
• Assembled a team of advisors from diverse backgrounds, including many from the South
• Faced economic challenges from the start, with high inflation and unemployment rates
• Sought to project an image of simplicity and frugality, in contrast to the imperial presidency of Nixon

Carter's Domestic Agenda

• Carter's domestic policy focused on energy, the environment, and government reform
  • Proposed a comprehensive energy policy to reduce dependence on foreign oil and promote conservation
  • Created the Department of Energy and implemented policies to encourage renewable energy
• Emphasized the importance of human rights and social justice
  • Appointed record numbers of women, minorities, and people with disabilities to government positions
  • Expanded Head Start and job training programs
• Struggled to work effectively with Congress, despite Democratic majorities in both houses
  • Vetoed several bills he saw as wasteful, including a public works bill with many earmarks
  • Faced opposition from liberal Democrats who felt he was not progressive enough
• The economy remained a persistent problem, with high inflation and slow growth
  • Appointed Paul Volcker as Federal Reserve Chairman to combat inflation through high interest rates
  • Implemented austerity measures, including cutting the budget and reducing the federal workforce

Carter's Foreign Policy Challenges

• Carter sought to make human rights a central focus of US foreign policy
  • Cut aid to countries with poor human rights records, such as Argentina and Chile
  • Negotiated the return of the Panama Canal to Panamanian control through the Torrijos-Carter Treaties
• Faced the Iran Hostage Crisis, which dominated the last year of his presidency
  • Iranian students seized the US Embassy in Tehran in November 1979, taking 52 Americans hostage
  • A failed rescue attempt in April 1980 ended in disaster, with 8 US servicemen killed
• Brokered the Camp David Accords between Israel and Egypt in 1978, a major diplomatic achievement
  • The accords led to a peace treaty between the two countries, the first between Israel and an Arab state
• The Soviet invasion of Afghanistan in 1979 ended détente and renewed Cold War tensions
  • Carter imposed a grain embargo on the Soviets and boycotted the 1980 Moscow Olympics
  • Began providing aid to Afghan mujahideen rebels fighting against the Soviets

Energy Crisis and Its Impact

• The 1973 oil embargo by OPEC led to a sharp increase in energy prices and gasoline shortages
  • Long lines formed at gas stations, and rationing was implemented in some areas
  • The crisis exposed America's dependence on foreign oil and its vulnerability to supply disruptions
• Carter made energy policy a top priority, calling it the "moral equivalent of war"
  • Proposed a comprehensive energy plan to reduce dependence on foreign oil and promote conservation
  • Implemented policies to encourage renewable energy, such as solar power and ethanol fuel
• The energy crisis contributed to stagflation, a combination of high inflation and stagnant economic growth
  • Rising energy costs drove up prices across the economy, while also dampening economic activity
  • Carter's efforts to address the crisis, such as encouraging conservation, were seen by some as too little, too late
• The crisis had long-term impacts on American society and politics
  • It led to a shift towards smaller, more fuel-efficient cars and appliances
  • It spurred investment in alternative energy sources and energy efficiency measures
  • It contributed to a sense of national malaise and a loss of confidence in government's ability to solve problems

Social and Cultural Shifts

• The 1970s saw significant changes in American society and culture
  • The women's movement made gains, such as the passage of Title IX and the legalization of abortion (Roe v. Wade)
  • The gay rights movement became more visible, with events like the Stonewall Riots and the first Pride marches
• The environmental movement gained traction, leading to new laws and regulations
  • The first Earth Day was celebrated in 1970, raising awareness of environmental issues
  • Congress passed the Clean Air Act, the Clean Water Act, and the Endangered Species Act
• The country became more diverse and multicultural
  • Immigration from Asia and Latin America increased after the passage of the Immigration and Nationality Act of 1965
  • The Bilingual Education Act of 1968 recognized the needs of students with limited English proficiency
• Popular culture reflected the changing times
  • Disco music and dance clubs became popular, symbolizing hedonism and escapism
  • Movies like "Star Wars" and "Jaws" set new box office records and revolutionized the film industry
  • Television shows like "All in the Family" and "The Jeffersons" dealt with controversial social and political issues