Ch. 29 1974-1980 Ford and Carter

1. Ch. 29 1974-1980Ford and Carter

2. Nation’s Confidence Drops in 1970s • Inflation, recession and industrial stagnation, as well as humiliations abroad such as the Iran Hostage Crisis • Foreign economic competition and an energy crisis based on oil purchases

3. OPEC Oil Embargo • Organization of Petroleum Exporting Countries (mostly nations from Middle East) raised prices and cut shipments of oil to U.S. to protest U.S. support of Israel in the Yom Kippur War of 1973 against Israel’s Middle East neighbors • Emergency Highway Energy Conservation Act (1974) – enacted the National Maximum Speed Law (55 MPH) • States had to agree to the limit if they desired to receive federal funding for highway repair

4. Other Economic Problems of the 1970s • Overall inflation went up to 14% (prices doubled in the decade) • Unemployment up to 6-10% (double the normal rate) • Federal deficits grew (tax receipts dropped well social welfare programs became more expensive) • Manufacturing hurt by foreign competition • Foreign companies could pay their workers less • US factories had aging equipment and inefficient production methods

5. Ford Faces Economic Problems • The economic focus began to change as the country sank into a mild recession • The focus of the Ford administration became fixing the increase in unemployment, which hit 7.2 percent in December 1974 • He introduced to Congress a one-year, five-percent income tax increase on corporations and wealthy individuals • He later switched to advocating tax cuts to stimulate the economy along with spending cuts • Congress approved the tax cuts but did not cut spending • The federal budget ran a deficit every year Ford was President

6. Pardoning Nixon • Nixon's resignation had not put an end to the desire among many to see him punished. • The Ford White House considered a pardon of Nixon, though it would be unpopular in the country. • Ford eventually agreed, and on September 8, 1974, he granted Nixon a "full, free, and absolute pardon", which ended any possibility of an indictment. • Ford’s approval ratings plummeted after the pardon • It allowed the nation to focus on economic problems

7. Ford Faces the Inflation Problem • At the time, inflation (7%) was believed to be the primary threat to the economy, more so than growing unemployment. • Ford went before the American public in October 1974 and asked them to "Whip Inflation Now“ and urged people to wear "WIN" buttons. • They felt as though controlling inflation would work to fix unemployment. • To rein in inflation, it was necessary to control the public's spending. • To try to mesh service and sacrifice, "WIN" called for Americans to reduce their spending and consumption.

8. Vietnam War Ends • North Vietnam invaded South Vietnam in 1975 • Ford asked Congress for funds to assist and re-supply the South before it was overrun, but Congress refused • The South Vietnamese army quickly was defeated • The US started evacuating its citizens • On April 30, 1975 Saigon fell and the Vietnam War was over

9. Mayaguez Incident • The Khmer Rouge navy of Cambodia seized a US merchant ship The Mayaguezoff its coast in May 1975 • The Khmer Rouge was the Communist Party that took over in Cambodia which was known to be brutal toward its enemies • US Marines attacked in order to rescue the crew of the ship (who had actually been released shortly before the attack in good health) • In the attack 10 Marines died, and 35 more were wounded • Those killed are the last names on the Vietnam Memorial Wall in Washington, DC

10. President Carter

11. Economic Problems • Stagflation – the economic condition of combined stagnant economic growth and high inflation • Rising prices reduced the purchasing power of the US dollar by more than 30% • One cause of inflation was rising oil prices • President Carter was unable to halt these problems

12. Conservative Stances of Carter • Despite being a Democrat, Carter supported some stances that had been long seen as conservative • He favored cutting federal spending • He felt government couldn’t solve our problems • He began the deregulation of airlines, railroads, trucking, oil, and gas industries

13. Panama Canal • Many Panamanians felt that the Canal Zone rightfully belonged to Panama • Student protests were met by the fencing-in of the Zone and an increased military presence there • Unrest culminated in riots on Martyr's Day, January 9, 1964, when approximately 20 Panamanians and 3–5 U.S. soldiers were killed • A decade later, in 1974, negotiations toward a settlement began

14. Panama Canal Treaty • On September 7, 1977, the treaty was signed by President Jimmy Carter and Omar Torrijos, de facto leader of Panama • This mobilized the process of granting the Panamanians free control of the canal so long as Panama signed a treaty guaranteeing the permanent neutrality of the canal • The treaty led to full Panamanian control effective at noon on December 31, 1999 • The Panama Canal remains one of the chief revenue sources for Panama

15. Camp David Accords • Muhammad Anwar al-Sadat of Egypt, and Menachem Begin of Israel, met with President Jimmy Carterat Camp David on September 5-17, 1978 for a set of talks • Israel recognized the "legitimate rights of the Palestinian people“ • Israel agreed to withdraw its armed forces from the Sinai, evacuate its 4,500 civilian inhabitants, and restore it to Egypt in return for normal diplomatic relations with Egypt • US committed billions of dollars of annual aid to both Israel and Egypt

16. Love Canal • Love Canal was a neighborhood in Niagara Falls, New York, located in the white collar LaSalle section of the city • In the mid 1970s Love Canal became the subject of national and international attention after it was revealed in the press that the site had formerly been used to bury 21,000 tons of toxic waste by Hooker Chemical • Hooker Chemical sold the site and it was used to build a school and housing on it • An unusual number of birth defects, miscarriages, and other health issues sprang up with residents in the area • On August 2, 1978, Lois Gibbs, a local mother who called an election to head the Love Canal Homeowners' Association, began to further rally homeowners • On August 7, 1978, United States President Jimmy Carter announced a federal health emergency, called for the allocation of federal funds to assist the city to remedy the site • This was the first time federal emergency funds were used for anything other than a natural disaster

17. Three Mile Island • The Three Mile Island accident was a partial nuclear meltdown which occurred at the Three Mile Island power plant in Dauphin County, Pennsylvania on March 28, 1979. • It was the worst accident in U.S. commercial nuclear power plant history, and resulted in the release of small amounts of radioactive gases and radioactive iodine into the environment. • In the five mile radius there was approximately 25, 000 people. • The radiation was not strong enough in the air to severely hurt anyone.

18. Iran Hostage Crisis • On Nov. 4, 1979 Muslim’s attacked the U.S. embassy and took 52 hostages • This was done in retaliation for US support of The Shah who they had just kicked out as dictator of Iran, who was taken in by the US • A failed rescue attempt further embarrassed the Carter administration • The hostage crisis ended on January 20, 1981 after 444 days after the inauguration of Ronald Reagan as president

19. 1980 Winter Olympics • Tensions were high between the superpowers because of the Soviet Union’s invasion of Afghanistan in 1979 • The U.S hockey team made up of college all-stars upset the profession Soviet Union team, on the way to a gold medal • It is considered one of the greatest upsets in sports history • It gave the US public hope in the Cold War The U.S hockey team celebrates after defeating the Soviet Union in the semi-finals of the 1980 Winter Olympics “Miracle” Documentary

20. The 1980 Summer Olympics Boycott • Carter issued a boycott on the 1980 Olympics in protest of the Soviet Union’s invasion of Afghanistan • He wanted the Games to be relocated to Greece but International Olympic Committee (IOC) refused • A total of 60 countries boycotted the Moscow Games President Jimmy Carter says that the U.S will boycott the 1980 Olympics

21. 1984 Summer Olympics • The Soviets boycotted the Summer Games held in Los Angeles, CA. • L.A Games hosted 140 nations in 1984 (99 more than in Moscow) • 1st Olympics to make money since 1932 • American athletes dominated the Games because the powerful Eastern nations weren’t present • China attended the L.A Olympics for the first time in 32 years The Olympic Coliseum for the 1984 Summer Games in Los Angeles, CA