2. Gerald Ford and Jimmy Carter Objective: to determine the effectiveness of Carter’s response to decreasing faith in the US government.

6. I. Gerald Ford Ford’s short presidency –President Ford granted a full pardon to Richard Nixon for any crime he may have committed. –Ford tried to cut government spending to curb inflation but the Democratic Congress passed many spending bills against his wishes. –In foreign affairs, Ford continued the policy of détente and kept Kissinger as secretary of state. –Congress refused to allow Ford to take part in Vietnam or Cuba, but he did recover the cargo ship—the Mayaguez—from the Cambodian navy.

7. I. Ford Loss of Public Confidence –Ford was perceived as a comical figure LBJ’s remark –Pardon of Nixon made his popularity plummet High 60s to low 30s in the polls

8. II. The Economy of the 1970s Out of control inflation! –Inflation rose to over ten percent for much of the decade. –Stagflation: inflation high, GDP growth low –Occurred primarily during the Nixon and Ford presidencies, but greatly shaped the Carter presidency Causes: wage and price controls (shortages) under Nixon, Oil embargo

11. II. The Economy of the 1970s Decaying Cities –White Flight (“Donut Hole Effect”) –Fleeing Factories Rust Belt in the North, declining South Factories moved to Latin America, South East Asia Foreign competition, e.g. auto industry Labor suffers, e.g. AFL-CIO loses 30% of its membership

14. III. Jimmy Carter Candidate Carter –Jimmy Carter came across as an honest man of deep religious faith who promised not to lie to the American people. –Carter immediately tried to help the nation heal some of the wounds of the past. Ex. He issued a pardon to thousands of Vietnam War draft dodgers. –Carter tackled problems in the economy and with energy. –Finally, Carter tried to deal with environmental issues.

15. III. Jimmy Carter Carter the Reformer –“Studied Informality” –Pardoned draft dodgers –Removed funding for the B-1 Bomber –Established the “Superfund” –Carter made the development of a national energy policy a priority.

16. III. Jimmy Carter Energy Policy –Created the Department of Energy Fund research for alternative fuels Regulate energy producers –Emergency Natural Gas Act –However, his successes were largely forgotten by 1979 during another gas shortage (Iranian Revolution)

17. III. Jimmy Carter Environmental Successes –Believed that conserving fuel was a key way to avoid plundering the environment –Passed the Alaska National Interest Lands Conservation Act The act protected more than 100 million acres of land and doubled the size of the nation’s park and wildlife refuge system.

18. III. Jimmy Carter Environmental Losses In 1979 a mishap at a nuclear power plant on Three Mile Island terrified the nation. Although little radiation was released, public concern about the safety of nuclear power grew. Chemicals that a company dumped in New York began to seep up through the ground at Love Canal and were linked to high rates of birth defects. Experts warned that there were likely many more toxic waste sites around the nation.

19. III. Jimmy Carter Carter and the Economy –Carter was unable to bring down inflation. –Carter’s energy policies were successful at helping reduce American dependence on foreign oil but this was not immediately apparent American production of energy increased under Carter.

20. III. Jimmy Carter Public Confidence plummets –Foreign policy disasters –Energy program too complex –Really, really unfortunate press coverage –High prices and run away inflation “Malaise” Speech in 1979