Jimmy Carter Attempting to lead the US through both domestic & foreign crises.

Economic Crisis of the 1970s Rising costs of raw materials & fossil fuels Increased international competition Insufficient training for new jobs CAUSES Economic Problems in the 1970s Block,

Economic Crisis of the 1970s OPEC –Fixed the petroleum prices –OPEC embargoed US b/c we supported Israel –There was a gas shortage !

OPEC: a history Organization of Petroleum Exporting Countries Full name: Organization of Petroleum Exporting Countries Originally developed in 1960 Included by 1972: –Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Socialist Peoples Libyan Arab Jamahiriya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon

Economic Crisis of the 1970s Increased International Competition –Many factories closed –Growth in service industry Stagflation –Slowing growth in the economy & rising prices = Inflation + Stagnant Economy Nixon tried to control inflation– cut spending & raise taxes

Election of 1976 Gerald Ford (R) & Bob Dole –Increase defense spending –Retention of Panama Canal –Opposition to busing and abortion Jimmy Carter (D) & Walter Mondale –Gained a wider support base! –"I will never tell a lie to the American people"

Others ran also… Ronald Reagan of CA George Wallace of AL Robert Byrd of WV Terry Sanford of NC What did they say?

Carter’s Economy First– increased govn’t spending & cut taxes –Inflation surged! Then reduced money supply –Didn’t work either War Against Consumption –Created Department of Energy People weren’t cutting back Oil industry was over- regulated. Click for political cartoon link

What does this cartoon by Herb Block suggest about the energy programs of the Carter Administration? – Answer on your paper.

Carter’s Foreign Policy “Our commitment to human rights must be absolute…” Resumed diplomatic relations with China Transferred control on Panama Canal to Panamanians (effective ) Blamed Soviet leader from crimes against humanity USSR invaded Afghanistan –Embargo on sale of wheat to USSR –Boycotted Summer Olympics in Moscow

Carter’s Foreign Policy The Camp David Accords, September 17, 1978 Signed by Anwar Sadat (Egyptian King) and Menachem Begin (Israeli Prime Minister) and was headed by Carter –Israel had to return the Sinai Peninsula –Egypt had to respect Israel's borders. The Sinai Peninsula

Carter’s Foreign Policy The Middle East Camp David Accords –1978 –A peace treaty between Israel & Egypt –Sinai to Egypt Iranian Hostages –1979 the Ayatollah took control of Iran –Nov. ’79 revolutionaries took the US embassy under siege –444 days 52 Americans were held hostage Cost Carter his re-election