1. Politics and Economics: 1971-1980 The Nixon, Ford, and Carter Administrations Explain how Presidents Nixon, Ford, and Carter attempted to lead the United States through domestic and foreign crises.

3. The Nixon Administration New Federalism: Nixon’s policy of dismantling a number of federal programs and giving more control to state and local governments. – Policy should have given more power to local governments, but actually made them dependent on the federal government for funding – When Congress appropriated money for programs he opposed, Nixon impounded the funds

4. Nixon’s Foreign Policy Henry Kissinger – Nixon’s national security advisor Détente: relaxation of tensions between the Soviet Union and China February 1972 – Nixon visited China, agreed to “more normal” relations May 1972 – Nixon visited Soviet Union – Strategic Arms Limitation Treat (SALT I): limit nuclear arms

8. Economic Crisis of the 1970s Funding both the Vietnam War and Great Society without raising taxes = deficit spending – inflation Organization of Petroleum Exporting Countries embargoed countries that supported Israel – U.S. created price controls for oil – OPEC’s increased prices and U.S. controls = oil shortage and rising prices

10. A Stagnant Economy Decline in manufacturing sector caused by increased international competition – Increase in unemployed and underemployed workers Stagflation: a combination of rising prices and economic stagnation

11. Ford Takes Over September 8, 1974 – Ford granted a “full, free, and absolute pardon” to Richard Nixon Ford stated he was acting in the public’s best interest, wanted to avoid a public division during a criminal trial By 1975, the economy was in its worst recession since the Great Depression

12. Ford’s Foreign Policy Ford followed Nixon’s general strategy August 1975 – signed the Helsinki Accords – Leaders of NATO and Warsaw Pact – Agreed to recognize the borders of Eastern Europe – Soviets agreed to uphold basic human rights, including the right to move across national borders – Soviets failed to uphold there end of the deal

14. Carter Battles the Economic Crisis Carter believed the nation’s most serious problem was its dependence on foreign oil Encouraged use of renewable resources and created the Department of Energy Carter’s inability to work with Congress caused many of his programs to fail – Inflation continued to grow

15. Carter’s Foreign Policy Carter argued that the U.S. must try to be “right and honest and truthful and decent” in dealing with other nations. Treaty created to give the Panama Canal back to Panama on December 31, 1999 Put a grain embargo on Soviet Union and boycotted the 1980 Olympic games in Moscow after Soviets invaded Afghanistan

16. Triumph and Failure in the Middle East Camp David Accords (1978): helped to broker a peace treaty signed between Israel and Egypt Iran Hostage Crisis (1979) – American supported Iranian Shah overthrown – November: American embassy in Tehran stormed and 52 hostages taken – 1980: failed rescue attempt – Hostages released the day after Carter left office – 444 days in captivity