1. Ford & Carter

2. Roots of the Economic Crisis
Began during Johnson’s Administration
Increased Federal deficit spending to fund Vietnam War and Great Society programs without raising taxes
Inflation
Rise in costs of goods
Organization of Petroleum Exporting Countries
1973 OPEC embargo of petroleum to countries supporting Israel
Nixon & Congress
Before embargo: price controls on gasoline and heating oil
Shortages of oil
Stagflation
Combing rising prices with economic stagnation
Due to international competition U.S. factories closed
Nixon cut spending and increased taxes

3. Gerald Ford Granted a full pardon to Richard Nixon
Whip Inflation Now (WIN) program failed
Encouraged people to save and spend wisely
Continued Détente of Nixon’s Presidency
“Thawing period” between the U.S. and Soviet Union
Helsinki Accords
Ford met with NATO & Warsaw Pact leaders
Agreed on borders of Eastern Europe at the end of WWII
Soviets promised to honor certain basic human rights

4. Jimmy Carter Energy Crisis Panama Canal: control transferred to Panama
National Energy Program: conserve oil, promote coal and renewable resources
Created Department of Energy
Panama Canal: control transferred to Panama
Human Rights
Soviet Union: imprisoning government protestors
Embargo on grain after Soviet Union invaded Afghanistan
Boycott of the summer Olympic Games in Moscow
Camp David Accords (1978)
Facilitated treaty between Israel and Egypt
Arab nations opposed the treaty
Bound nations to full diplomatic relations, phased evacuation by Israel of Sinai Peninsula, form of autonomy for Palestinians living in West Bank and Gaza Strip

5. Hostage Crisis in Iran
Iran’s monarch (The Shah) forced to flee in 1979
Islamic Republic is formed: led by ultra-orthodox religious Ayatollah Khomeini
Khomeini supported Iranian students stormed American Embassy in Tehran
52 Americans taken hostage
American seen as “The Great Satan”
Wanted America to surrender the Shah, apologize for supporting him, and turn over his assets to Iranian government
America froze Iranian assets in U.S., Cut off trade with Tehran, and asked for assistance from the U.N. and World Court
Hostages were finally released on Carter’s last day in office (444 days later)

6. Leaders of Iran…