Ford and Carter’s Presidencies

Economic Problems Arise -US enjoyed great prosperity in the 50s and 60s -mid-60s = rapid inflation 1.Vietnam war 2.Great Society -1 st step towards a major economic crisis

-sharply rising oil prices Economic Problems Arise -70s - US is dependent on oil from Africa & the Middle East -OPEC – the Organization of Petroleum Exporting Countries – uses this to try to sway politics in America

-war erupts between Israel and several Arab nations in OPEC places an embargo on any nation that supports Israel The Oil Crisis -embargo ends quickly but OPEC raises prices throughout the decade = recession in the U.S.

Graph Showing the Sharp Rise in Oil Prices

Cars Waiting for Gas

1970s ads for more fuel efficient cars

What do you notice about all these cars?

THEY’RE ALL FOREIGN CAR COMPANIES!!!!! How did American car companies respond to the oil crisis and fuel- efficient foreign competition?

1970s American Car Ads

1970’s American Car Ads

Economic Problems Continue -US factories = old and inefficient U.S. was importing more than it exported -Factories begin closing = millions jobless

Economic Problems Continue -“stagflation” (Nixon)– a combo of a stagnant economy, inflation, and high unemployment -Nixon was unable to resolve the economic problems

Ford Tries to Fix the Economy -economy is the worst since the Depression -Ford launches a plan called WIN – “Whip Inflation Now” -Unemployment rose to 9%

Ford Tries to Fix the Economy -urges Americans to reduce their gas use and conserve energy 1.cuts gov’t spending 2.urges the Federal Reserve to raise interest rates 3.lowers taxes 4.tries to balance the budget -Doesn’t revive the economy

Ford’s Foreign Policy -Ford continues policy of détente NATO and Warsaw Pact members sign the Helsinki Accords 1.recognized the European borders established after WWII 2.USSR to guarantee certain human rights to its citizens

What is Ford’s domestic policy? What is Ford’s foreign policy?

The 1976 Election

Carter Tries to Fix the Economy -Carter 1 st tries to -increase gov’t spending -cut taxes -inflation jumps in Carter vetoes his own programs -tries to reduce the amount of money in circulation -raises interest rates -neither of these work

Carter on the Oil Crisis -believed that our biggest problem was dependence on foreign oil -Department of Energy -stresses the use of coal power and renewable resources like solar power

Carter on the Oil Crisis -Carter goes against a campaign promise and deregulates the oil industry - hoping to spur growth -2 nd oil shortage hits Carter gives a speech implying that it was the people’s fault, and his popularity drops lower than Nixon’s

Carter on Foreign Affairs -Carter stressed honesty and morality when dealing with foreign countries -He signs a treaty with Panama to return the canal to them in 1999

Carter on Foreign Affairs -Carter identifies the Soviet Union as a human rights violator = hurts US- Soviet relations -USSR invades Afghanistan in embargos grain to Russia -boycotts the 1980 Olympics in Moscow

Carter on Foreign Affairs -well known for his Middle-East policies -Camp David Accords Carter helps to negotiate a peace treaty between long- time enemies Israel and Egypt

The Camp David Accords Anwar Sadat, Jimmy Carter, and Menachem Begin

Carter on Foreign Affairs Months after the Camp David accords Ayatollah Khomeini over throws the Shah of Iran Since the US supported the Shah Khomeini’s government distrusted the US

Carter on Foreign Affairs Americans are taken hostage by Khomeini’s revolutionaries at the US embassy in Tehran -more than a year Carter negotiated with Iran & made a failed rescue attempt to release the hostages -Iran releases the hostages the day Carter leaves office, having held them for 444 days