Economic & Foreign Policy Failures of Ford and Carter in the Late 1970s

1. Essential Question: • Why did the economic & foreign policies of Ford & Carter fail to meet the needs of America in the late 1970s? • Warm-Up Question: • Which had the longer legacy on America: the Watergate scandal or Nixon’s foreign policy in China & the USSR?

2. Essential Question: • Why did the economic & foreign policies of Ford & Carter fail to meet the needs of America in the late 1970s? • Reading Quiz Ch 30A

3. The 1970s: A Crisis in Confidence • The “Overextended Society” of the 1970s was defined by: • Low economic growth, high prices, & rising unemployment • Distrust of the government due to the Watergate scandal • “Passionless presidents” who failed to project clear leadership • An end of Nixon-era détente & resumption of Cold War rivalries In the 1920s, the economy was so good that the decade was referred to as the “Roaring 20s” In the 1950s, the economy was so good that the decade was referred to as the “Affluent Society” The economy & mood in America were so bad in the 1970s that the decade was called the “Overextended Society”

4. The U.S. Economy in the 1970s

5. Energy and the Economy The fuel shortage led to a 200% increase in the price of gas & home heating To punish Israel’s allies when Egypt & Syria attacked against Israel • In the 1970s, 2 great oil shocks hurt the U.S. economy: • In 1973, the Arab members of OPEC initiated a 5% cut on production & an embargo against the U.S. • The Iranian Revolution in 1979 cut off oil & led to another gas-shortage & soaring interest rates Led to worst recession since Depression

6. The Oil Shocks: Price Increases of Crude Oil & Gasoline In 2008; Remember when gas prices hit $4.00? The OPEC oil embargo Iranian Revolution

7. The Search for an Energy Policy Mandated gas mileage requirements, speed limits, & price controls on domestic oil • These oil shocks forced the U.S. to realize its dependency on other nations for oil & led to action: • NixonformedtheEPAtooversee industry’s environmental impact • The new Dept of Energy (1977) emphasized conservation & domestic energy production • Still…U.S. oil imports rose 50% from 1973 to 1979 Nuclear plants & Alaskan oil pipeline

8. A Troubled American Economy Workers’ wages did not keep up with rising prices • The 1970s economy grew stagnant: • Unemployment grew to 9% • Heavy industry jobs fell due to outsourcing & foreign competition • 1970s experienced huge inflation: • Due to Vietnam deficit spending, global food shortage, oil shocks • Massive price increases led to a 5.5% decrease in “real income” for average Americans Milk & hamburger prices rose 200% A stagnant economy High inflation STAGFLATION Car prices rose 72% Bread prices rose 400% Neither Ford nor Carter could stop “stagflation;” Carter’s policies actually drove interest rates up as high as 20%

9. The “Lean Years”The Presidencies of Ford & CarterFord & Carter Videos

10. The Ford Administration • Gerald Ford failed to restore public confidence after Watergate: • Ford pardoned Nixon for any crimes he may have committed • He revealed a number of past CIA assassination attempts & appointed George Bush to reorganize the CIA • Vetoed 39 Great Society-style bills initiated by Congress

11. The 1976 Campaign • In 1976, dark-horse Jimmy Carter won the Democratic nomination & campaigned as an outsider, an honest man, with fresh leadership • Carter won a narrow victory due to social class & racial factors: • Affluent, well-educated, suburban voters chose Ford • Socially & economically disadvantaged voted for Carter

12. Ford’s foreign policy blunder during the TV debates in 1976: “There is no Soviet domination of Eastern Europe”

13. 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 In 1979, Carter gave the “national malaise” speech in which he discussed the importance of conserving energy but seemed to blame Americans for creating a “crisis in confidence”

14. Essential Question: • Why did the economic & foreign policies of Ford & Carter fail to meet the needs of America in the late 1970s? • Reading Quiz Ch 31A

15. Carter’s Human Rights Foreign Policy

16. A Declining Superpower • America’s international dominance declined sharply in 1970s due to: • Americans’ increasing desires to avoid “another Vietnam” • The War Powers Act forced the president to consult with Congress before sending troops • The escalating military costs & deficit spending made sustaining the Cold War impossible

17. Foreign Policy & Human Rights • Carter focused his foreign policy on a commitment to human rights: • Spoke out against repressive regimes in Latin America & apartheid in South Africa • Reformed the CIA to operate “within the law” (but only briefly) • Negotiated the return of the Panama Canal to Panamanians

18. Foreign Policy & Human Rights • In Nov 1977, Egyptian leader Sadat made an appeal with Israel to settle the October War of 1973 • Carter invited Egyptian leader Sadat & Israeli leader Begin to the U.S. to negotiate terms • The Camp David accords in 1979 led to a peace treaty between Egypt & Israel, but alienated other Arab nations

19. Celebrating the Camp David Accords: Menachem Begin, Jimmy Carter, & Anwar Sadat

20. The Cold War Resumes • During the Carter years, the Cold War rivalry between the U.S. & USSR grew due to: • A new arms race as the U.S. adopted new MX missiles & Trident submarines • SALT II failed to make lasting arms reduction • Increased U.S.-Sino relations put the USSR on the defensive

21. Ohio-class submarine with Trident nuclear missile capability

22. The 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 Olympics • Aid to the Afghani resistance Carter hoped to limit nuclear arms & advance human rights, but found himself in a heightened Cold War

23. Soviet Invasion of Afghanistan, 1979

24. The Iranian Hostage Crisis • The Camp David victory was offset by the 1979 Iranian hostage crisis: • Exiled Islamic fundamentalist Ayatollah Khomeini led a coup against the U.S.-backed shah • When Carter allowed the shah to enter the U.S. for medical aid, irate mobs in Tehran took 52 hostages from the U.S. embassy

25. Quest for Peace in the Middle East • Carter’s attempts at diplomatic, military, & economic threats failed to bring a return of the hostages • In 1980, Carter approved a rescue mission that was aborted after 2 helicopters crashed • The perceived blunders & inability of Carter to end the hostage crisis hurt Carter in his re-election bid in 1980

26. Conclusions:A Failed Presidency

27. A Failed Presidency • Carter’s failures with inflation, Iran, & Afghanistan overshadowed his foreign policy victories with the Panama Canal & the Middle East • The failures of Johnson, Nixon, Ford, & Carter led to a desire among Americans for a strong leader who could face both domestic & foreign challenges Carter’s 1980 approval rating was 23%