1. Modern American History
Crisis in the 1970s
Modern American History

5. Stagnant Economy
OPEC establishes an embargo and raises oil prices for nations in support of Israel during the Yom Kippur War, causing shortages and inflation.
In 1971, for the first time since 1889, the U.S. imported more than it exported.
Stagflation – recession coupled with high inflation

6. Continued Ford’s Foreign Policy
Nixon attempts to curb inflation, with little success.
Gerald Ford establishes WIN “Whip Inflation Now.”
Heavily vetoes the Democratic Congress
Ford continues Nixon’s policies abroad.
Retains Kissinger as Secretary of State
Ford’s Foreign Policy

7. Trends

9. The Election of 1976
Gerald Ford [R]
Jimmy Carter [D]

11. Carter’s Economic Policies
Creation of the Department of Energy
Urges Americans to fight a “war” on rising energy prices.
Supports deregulation of the oil industry.
None too successful, more Middle-Eastern conflicts lead to another fuel shortage.
Carter’s approval falls to lower than Nixon’s during Watergate.

12. Carter’s Foreign Policy
Wants the U.S. to deal morally and honestly with foreign nations.
Strong support for human rights.
Promotes transfer of Panama Canal to Panama
Embargo against the Soviet Union and boycott of the 1980 Olympic Games in Moscow

13. Carter in the Middle East
1978 Camp David Accords peace agreement between Egypt and Israel.
U.S. supported shah of Iran becomes unpopular and is ousted.
Ayatollah Khomeini – new leader of Islamic republic of Iran distrusts the U.S.
52 Americans taken hostage at the American Embassy in Tehran.