New Voice, New Leader Chapter 29, Lesson 5

New Leader Democrats Nominate Jimmy (GA) Carter in 1976 Honesty, openness, trust, and morality “1976 will not be a year of politics as usual.” “New mood in America.”

Republican Nominations Ford runs against former California Governor Ronald Reagan Ford wins narrow victory Chooses Bob Dole as his running mate

Election of 1976 Issues: economy, reputation of the candidates, desire for change Carter elected by slim margin even though Ford carried more states First President from the deep south since prior to the Civil War.

Changes Carter Made Carter’s goal is to restore people’s confidence in their government Wants gov’t to provide better service at a lower cost Adds two departments Dept. of Energy (1977) Dept. of Education (1979)

Energy In the 1970’s, American’s made up 6% of the population and consumed 33% of the world’s energy Millions of barrels of oil are imported from the Middle East Congress passes a law that lowers tax bill for companies that use less energy Companies are encouraged to produce smaller cars

Inflation 1978 – Inflation is a major problem Prices go up and workers demand higher wages Higher wages increase the cost of doing business Businesses raise prices to cover higher costs By 1979, inflation was over 11% Normal inflation is 3-5% per year

Inflation in the 1970’s

Problems in Central America Panamanian Gov’t wants control of Panama Canal from U.S. Carter signs treaties giving control in 2000 Treaty gives U.S. permission to defend canal in case of any attack Nicaragua fights a civil war and dictator Anastasio Somoza is overthrown U.S. recognizes new government Political violence in El Salvador breaks out Archbishop who speaks out against the military is assassinated Later 6 Americans are killed Carter withholds aid to El Salvador until investigation Is completed

Problems with Israel U.S. supports independent state of Israel Israel’s neighbors refuse to recognize Israel’s right to exist They claimed Israel’s land belongs to the Arabs Carter invites Egypt's Anwar Sadat and Israel’s Menachem Begin to sig a peace treaty

Problems with Israel Arab nations feel betrayed by Sadat The treaty did not deal with Palestine or Jerusalem – lands that had been taken over by Israel during earlier wars Palestine Liberation Organization (PLO) continued terrorist attacks against Israel Israel bombed PLO members in neighboring Lebanon