38 th President

 Inflation as a result of financing LBJ’s Great Society programs.  High unemployment as a result of international trade, flood of new workers, and baby boomers  Heavy dependence upon foreign oil Most oil came from Middle East Oil prices steadily rose in the 1960’s

 October 6, 1973  Syria and Egypt invade Israel on Yom Kippur  United States supported Israel by supplying military aid  OPEC stopped selling oil to the United States  When sales resumed in 1974, prices had quadrupled

OPEC Countries

 Cut spending and raise taxes Congress refused  Tried to reduce money in circulation and raising interest rates Drove country into a mild recession  Price and wage controls Froze wages and prices for 90 days Temporarily eased inflation, recession continued

 Nixon Resigns  Ford sworn in  Loses popularity immediately after pardoning Nixon

 Stressed his limitations, “I’m a Ford, not a Lincoln.”  Tries to “WIN” against inflation Whip Inflation Now Cut back on use of oil and gas Conserve energy Use energy saving strategies

 Cut government spending  Raised interest rates  WORST RECESSION IN 40 YEARS!!!!!

 Asked for $722 million for Vietnam Congress refused  US merchant ship Mayaguez seized by communist government of Cambodia 41 U.S. troops died on a mission to save 39 crew members

One Bright Spot Met with China and Soviet Union to promise increased cooperation between Eastern and Western Europe

39 th President

 Democrats, “We could run an aardvark this year and win.”  Jimmy Carter was the former Governor of Georgia and a peanut farmer.

 Energy Crisis  Foreign Policy  Iran Hostages

 National Energy Act Tax on gas-guzzling cars Removed price controls on oil and natural gas produced in the United States Extended tax credits for alternative energy

 Economy worsens  Solutions are ineffective  Standard of living declined from 1 st in the world to 5th

 Pushed for Human Rights Policy instead of realpolitik.  Gave ownership of Panama Canal to Panama, December 31,  SALT II Treaty broken when Soviet Union invaded Afghanistan.  Failed to negotiate lasting peace in Israel and the Middle East. (Camp David Accords)

 Shah of Iran was US Ally  Ayatollah Ruhollah Khomeini overthrew Shah  Shah fled the country, eventually went to US for hospitalization

 Infuriated Iranians seized US embassy on November 4, 1979 took 52 hostages  Demanded US return Shah  444 days of captivity

 Loses White House to Ronald Reagan  New decade of conservatism takes over

 crisis/videos crisis/videos  History.com video clip