3.  Ford had declared it was time for communication, conciliation, compromise, and cooperation.  September 8--Ford Pardoned Nixon for all offenses  The action backfired and Ford lost popularity.

4.  Inflation and unemployment rose while the economy stalled-- “stagflation”  This led to recession.  The Fed tightened the money supply.

5.  Ford believed in limited government  The Democratic Congress wanted more government intervention in the economy.

6.  War Powers Act  Had been passed over Nixon’s veto  Limited the President’s ability to send troops abroad to: an emergency, a declaration of war or an act of Congress  In Emergencies the President must: ▪ Notify Congress within 48 hours ▪ Not keep troops overseas over 60 days w/o congressional approval ▪ Bring troops home if Congress passes a resolution.

7.  Vietnam  Americans had been fully withdrawn.  1975--North Vietnam invaded the South  Despite requests for aid from Ford, Congress did nothing.

9.  Republicans reluctantly nominated Ford  Democrats nominated the Governor of GA, Jimmy Carter  Carter won by a narrow margin.

10.  Carter tried to be a “folksy” “down home” leader.  Rarely let the band play at his entrance  Wore casual clothing in public and when addressing the nation

12.  Carter’s cornerstone issue was human rights.

13.  Carter invited President Anwar el-Sadat of Egypt and Prime Minister Menachem Begin to Camp David in 1978.  Carter served as a negotiator  The result was the Camp David Accords in which:  Israel withdrew from the Sinai Peninsula  Egypt became the 1st Arab country to recognize Israel’s existence as a nation.  This did not solve all the problems of the Middle East

16.  Carter successfully fought to pass treaties giving the Panama Canal to Panama.

17.  Carter recognized China.  He established official diplomatic relations.  In doing so, he unrecognized Taiwan as the official government of China.

18.  SALT II  Limited the # of nukes and missiles  Prohibited building of ground based missile defense systems  Afghanistan  1979--Soviets invaded.  Carter denounced the invasion, stopped grain shipments and imposed a boycott of the 1980 Olympic games in Moscow.

19.  For years the US supported Shah Mohammed Reza Pahlavi.  January 1979--revolution broke out.  It was led by Muslim fundamentalists.  The Shah was forced to flee to the US and was replaced by Ayatollah Ruholla Khomeini.  November 4, 1979--followers of Khomeini seized the US embassy in Tehran and took 66 hostages.  More than 50 were held for over a year  Carter responded by breaking relations and freezing Iranian assets in the US.

21.  Khomeini insisted the Shah be sent back for trial  April 1980--Carter authorized a naval commando rescue attempt that ended in desert helicopter crashes and 8 deaths.  January 1981--The hostages were released within moments of Ronald Wilson Reagan’s inauguration.

23.  Economic Instability  High inflation--21%  High interest rates--21%  Continued and worsening energy crisis  Carter’s policies did not help

28.  Three Mile Island Accident  Occurred March 1979  Near Harrisburg, PA  Faulty seal in cooling system caused coolant pumps to shut down.  Operators misread symptoms and shut down the emergency cooling system.  A partial core melt down occurred and some radiation was released.  140,000 people fled  Resulted in a slowdown of nuclear power and more regulation.

29.  Amnesty  Carter granted amnesty to all Vietnam draft dodgers.

30.  Carter’s popularity had dropped  He would face the governor of California, Ronald W. Reagan