The 1970’s

I. Gerald Ford Granted Richard Nixon a full pardon after being inaugurated. A. Economic Problems 1. Inflation (rise in prices) was increasing, so Ford cut spending and encouraged low prices. Result: recession & high unemployment

I. Gerald Ford 2. Oil Embargo-conflict in the Middle East and American support of Israel caused Arab nations to stop shipping oil to the U.S. Created shortages in heating oil and gas. OPEC-13 nations that control large amounts of oil and set prices. This organization has increased oil prices almost 600% since 1967.

II. Jimmy Carter A. Problems in the Late 1970's 1. Low voter turnout. Causes: Distrust of the government after Vietnam and Watergate. Lack of large political machines.

II. Jimmy Carter A. Problems in the Late 1970's 2. CIA-Had spied on U.S. citizens; also helped to overthrow the presidential government of Chile, leaving the country for a dictator. 3. FBI-had kept surveillance on U.S. citizens.

II. Jimmy Carter B. Election of 1976- "The Outsider" Carter won by a narrow margin over Ford. Former governor of Georgia, he had support from religious groups and African Americans. His personality convinced voters that he was not a regular politician.

II. Jimmy Carter C. Energy & Economics 1. Energy Crisis-Carter encouraged conservation, taxing "gas guzzlers" and establishing the Department of Energy in 1977. Three Mile Island-nuclear reactor overheated in PA, creating a fear of nuclear power.

II. Jimmy Carter C. Energy & Economics 2. Economics-inflation was steady, U.S. trade deficit was growing, by 1980, 7 million unemployed in the U.S. Labor unions declined as many industries moved overseas. Stagflation=high inflation, high unemployment, stagnant production

II. Jimmy Carter D. World Events 1. Human Rights-U.S. refused aid to countries that violated their citizen's rights. 2. Panama Canal-U.S. signed 2 treaties: 1-gave up Canal Zone except for military installations. 2-agreed to give up Canal in 1999. This eased tensions in L.A.

II. Jimmy Carter D. World Events 3. SALT II-New restrictions on weapons 4. Dec. 1979-Soviets invaded Afghanistan, trying to put down a revolution by Muslim rebels. The U.S. supported the rebels with weapons and money.

II. Jimmy Carter D. World Events 5. Middle East-Henry Kissinger (Sec. of State) tried to help resolve conflict there. Camp David Accords-Anwar Sadat of Egypt met with Menachim Begin of Israel and signed a peace agreement. PLO-acts of terrorism

II. Jimmy Carter Iran Hostage Crisis U.S. had supported the Shah, a leader who encouraged western ideas. 1979-Ayatollah Khomeni returned to power & set up a religious state that enforced strict Islamic law. Terrorists seized the U.S. Embassy in Tehran, holding 52 hostages.

II. Jimmy Carter Iran Hostage Crisis Carter severed all economic ties. After 444 days, they were released, 33 minutes after the inauguration of Ronald Reagan.