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This period was marked by the end of Nixon's presidency, Ford's economic challenges, Carter's focus on human rights, and the Iranian Revolution. Energy crisis, foreign policy shifts, and Cold War tensions defined these turbulent years.
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Gerald Ford 1974-1977 • “Our national nightmare is over” • Nixon Pardon – approval drops 22% • Free-market: 66 vetoes Dem Congress • Stagflation: Recession & Inflation grew • WIN – Whip Inflation Now! - Cut spending, urged higher interest rates - recession worse • Fall of Saigon April 1975 – no intervention • Helsinki Accords - continued détente – criticized by conservatives in U.S.
Jimmy Carter defeats Ford (who narrowly edged Reagan for nomination) • Democrats gain large control of Congress
Energy & Economy • Urged conservation • Pressured by automobile and gas co’s • Developed the National Energy Act • Taxed “gas guzzlers” • Gave tax credits for alternative energy research • Nuclear Power until Three Mile Island incident in ‘79 • OPEC raises prices again in ’79 – Energy Crisis • By 1980 – inflation climbed to 13%
Shift in Focus of Foreign Policy • Carter a “Wilsonian Moralist” focused on Humans Rights • Rejected “Realpolitik” Cut off aid to dictators Argentina and Chile • Agreed to return the Panama Canal to Panama on 12/31/99 • Camp David Accords (1978) • mediated peace agreements between Egypt (Sadat) and Israel (Begin) • Israel returned the Sinai Peninsula to Egypt • Egypt recognized Israel’s right to exist
Iranian Revolution & Hostage Crisis • 1979 – Iranians rebelled against the Shah (installed w/ help of CIA in 1950s) • Ayatollah Khomeini led revolution returned from exile • Iran would impose strict Sharia Law • Carter allowed the Shah to be treated in NY for cancer • Hostage Crisis: November 4, 1979 – students raided the US embassy in Tehran - lasted 444 days - Demanded the return of the Shah for 52 US hostages – Carter No • Operation Eagle Claw – April 1980 Delta Force failed operation to rescue hostages, 8 Americans killed – Carter’s approval down to 40%
Cold War Heats Up Again • December 1979 – USSR invades Afghanistan • Carter: • Cancels SALT II • Cancels Wheat deal • Increases defense spending • Boycott of 1980 Moscow Olympics