32.3 The Ford and Carter Years

1. 32.3 The Ford and Carter Years Essential Questions What were the challenges to the Ford and Carter Administrations?

2. Key Terms • Gerald R. Ford • Jimmy Carter • National Energy Act • Human Rights • Camp David Accords

3. Key Dates • August 9, 1974 Ford is sworn in as President • May 1975- Mayaguez Incident • November 1976- Jimmy Carter Elected • September 17, 1978 – Camp David Accords • July 15, 1979 – “Crisis of Confidence” Speech

4. “Our long national nightmare is over”-Gerald Ford • What problems did Ford face when he was sworn in as President? • Watergate • Distrust of the government • The economy- still nation’s biggest issue • Ford appeared honest, but also boring • “I’m a Ford, not a Lincoln” • Commonly described as “Square”

5. Gerald R. Ford

6. Nixon Pardon • September 8, 1974 Ford Pardons Nixon for role in Watergate • “A body blow to the president's own credibility…”-The New York Times • Ford believed it would help the nation move past Watergate • Damaged Ford’s public support • Hoped to win back support by instituting new policies to address the nation’s struggling economy

8. Ford’s Economic Policies • Inflation and unemployment – stagflation continued to be a problem • Inflation was 11% by end of 1974 • Much of it was caused by rising oil and gas prices • “Whip Inflation Now” • Asked people to cut back on gas and oil • Cut government spending • Increased interest rates • Initially made things worse- economy moved into full-recession

9. Battles With Congress • Democratic Congress was opposed to much of Ford’s economic policy • Wanted to increase spending on jobs programs, health, education • Ford vetoed much of their legislation- arguing that increased spending would only make inflation worse • Ford vetoed over 50 Bills in two years • By 1976 inflation was below 10% and unemployment had fallen about .5% from 8.5 to 8% Were Ford’s policies bad for the nation?

10. Ford’s Foreign Policy • Continued much of Nixon’s policies • Henry Kissinger remained Secretary of State • Helsinki Accords • Agreements designed to increase cooperation b/t Eastern and Western Europe • Mayaguez incident • Cambodia seized US ship Mayaguez • Ford launches airstrikes on Cambodia and sends US Marines to rescue hostages • 41 soldiers are killed saving 39 hostages

11. S.S. Mayaguez

12. USSHolt Boards the Mayaguez

13. The Election of 1976 • Ford eventually wins Republican Nomination • Faced strong opposition from Conservative former California Governor Ronald Reagan • Democrats nominate former Georgia Governor Jimmy Carter • Democrats in strong position after Watergate and conflict in the Republican Party • “We could run an aardvark this year and win” • Carter ran as a Washington outsider- to an advantage • Carter was folksy, and his personality and morality helped him more than his experience

14. Jimmy Carter

15. Carter Campaign

17. Carter’s Inauguration

18. The Carter Administration • Energy Crisis • Caused mostly by over-reliance on imported oil • 1978- National Energy Act • Tax on gas guzzling cars • Tax credits for alternative energy sources • Removal of price controls on heating oil and gasoline for US resources • Cars became more efficient • Renewable sources of energy began to be developed

19. Continuing Economic Crisis • 1979- violence in the Middle East raises prices and causes oil shortages in the US • Inflation rose to 11.3% • Price controls • Spending cuts • De-regulation of transportation • Raise in interest rates • Seen as inconsistent • “Crisis of Confidence Speech” • Inflation at 13.5%

20. Rust Belt • Economy shifted to service economy from industrial • Foreign Competition • Higher energy costs • Loss of low skill labor • Many cities especially in North and Midwest lost their industries ex. steel, automotive, textile • Rust Belt Cities • Ex. Baltimore, Detroit, Buffalo, Cleveland

24. Domestic Policy

25. Human Rights Foreign Policy • Rejected realpolitik and Détente • Focused on Human Rights • Carter refused Aid to countries that had human rights violations • examples? • Many of these nations were US allies • Supported dictators in some countries and cut off others • Angered US allies and was initially popular but public support for the policy quickly fell • More tension with Soviet Union • Soviet invasion of Afghanistan led to a escalation of tensions in 1979

26. Camp David Accords • Carter’s biggest foreign policy achievement • Summer 1978 brought Egyptian President Anwar el-Sadat and Israeli Prime Minister Menachem Begin • Two Agreements • 5 year transition period for Israel and Jordan to work out issue of self-rule for Palestinians • Ending hostilities between Israel and Egypt • Detailed treaty signed in March 1979 • Israel returned conquered land to Egypt • Egypt recognized Israel as a nation- 1st Arab nation to do so.

27. Iranian Hostage Crisis • Shah of Iran was US ally since 1950s • Corrupt • Brutal • Secret police- Savak- tortured and executed thousands • January 1978- Massive strikes and protests paralyze country • January 1979- Ayatollah RuhollahKohmeinireturns from exile in Paris- establishes government based strictly on the Qur’an • October 1979- Shah flees Iran • Goes to the United States for cancer treatment • November 4. 1979- Iranian students storm US embassy in Tehran- capturing 52 Americans for 444 days • Carter severed diplomatic relations and severed trade with Iran • Not released to January 20th 1981

28. Shah of Iran

29. Ayatollah Kohmeini

30. Iranian Revolution

38. Foreign Policy