Essential Question:

1

• Essential Question
• Why did the economic foreign policies of Ford
  Carter fail to meet the needs of America in the
  late 1970s?
• Warm-Up Question
• Which had the longer legacy on America the
  Watergate scandal or Nixons foreign policy in
  China the USSR?

2
The 1970s A Crisis in Confidence

• The Overextended Society of the 1970s was
  defined by
• Low economic growth, high prices, rising
  unemployment
• Distrust of the government due to the Watergate
  scandal
• Passionless presidents who failed to project
  clear leadership
• An end of Nixon-era détente resumption of Cold
  War rivalries

In the 1920s, the economy was so good that the
decade was referred to as the Roaring 20s
In the 1950s, the economy was so good that the
decade was referred to as the Affluent Society
The economy mood in America were so bad in the
1970s that the decade was called the
Overextended Society
3
The U.S. Economy in the 1970s
4
Energy and the Economy
The fuel shortage led to a 200 increase in the
price of gas home heating
To punish Israels allies when Egypt Syria
attacked against Israel

• In the 1970s, 2 great oil shocks hurt the U.S.
  economy
• In 1973, the Arab members of OPEC initiated a 5
  cut on production an embargo against the U.S.
• The Iranian Revolution in 1979 cut off oil led
  to another gas-shortage soaring interest rates

Led to worst recession since Depression
5
The Oil Shocks Price Increases of Crude Oil
Gasoline
In 2008 Remember when gas prices hit 4.00?
The OPEC oil embargo
Iranian Revolution
6
The Search for an Energy Policy

• These oil shocks forced the U.S. to realize its
  dependency on other nations for oil led to
  action
• Nixon formed the EPA to oversee industrys
  environmental impact
• The new Dept of Energy (1977) emphasized
  conservation domestic energy production
• StillU.S. oil imports rose 50 from 1973 to 1979

Mandated gas mileage requirements, speed limits,
price controls on domestic oil
Nuclear plants Alaskan oil pipeline
7
A Troubled American Economy
Workers wages did not keep up with rising prices

• The 1970s economy grew stagnant
• Unemployment grew to 9
• Heavy industry jobs fell due to outsourcing
  foreign competition
• 1970s experienced huge inflation
• Due to Vietnam deficit spending, global food
  shortage, oil shocks
• Massive price increases led to a 5.5 decrease in
  real income for average Americans

Milk hamburger prices rose 200
A stagnant economy
High inflation
STAGFLATION
Bread prices rose 400
Car prices rose 72
Neither Ford nor Carter could stop stagflation
Carters policies actually drove interest rates
up as high as 20
8
The Lean YearsThe Presidencies of Ford
CarterFord Carter Videos
9
The Ford Administration

• Gerald Ford failed to restore public confidence
  after Watergate
• Ford pardoned Nixon for any crimes he may have
  committed
• He revealed a number of past CIA assassination
  attempts appointed George Bush to reorganize
  the CIA
• Vetoed 39 Great Society-style bills initiated by
  Congress

10
The 1976 Campaign

• In 1976, dark-horse Jimmy Carter won the
  Democratic nomination campaigned as an
  outsider, an honest man, with fresh leadership
• Carter won a narrow victory due to social class
  racial factors
• Affluent, well-educated, suburban voters chose
  Ford
• Socially economically disadvantaged voted for
  Carter

11
Fords foreign policy blunder during the TV
debates in 1976 There is no Soviet domination
of Eastern Europe
12
Disenchantment with Carter

• Carter entered office with no clear political
  philosophy or vision
• Deregulated the airline industry which lowered
  prices
• Buthis attempts to reform welfare Social
  Security failed
• He had no remedy for soaring inflation, interest
  rates, bank failures that hurt the economy

In 1979, Carter gave the national malaise
speech in which he discussed the importance of
conserving energy but seemed to blame Americans
for creating a crisis in confidence
13
Carters Human Rights Foreign Policy
14
A Declining Superpower

• Americas international dominance declined
  sharply in 1970s due to
• Americans increasing desires to avoid another
  Vietnam
• The War Powers Act forced the president to
  consult with Congress before sending troops
• The escalating military costs deficit spending
  made sustaining the Cold War impossible

15
Foreign Policy Human Rights

• Carter focused his foreign policy on a commitment
  to human rights
• Spoke out against repressive regimes in Latin
  America apartheid in South Africa
• Reformed the CIA to operate within the law (but
  only briefly)
• Negotiated the return of the Panama Canal to
  Panamanians

16
Foreign Policy Human Rights

• In Nov 1977, Egyptian leader Sadat made an appeal
  with Israel to settle the October War of 1973
• Carter invited Egyptian leader Sadat Israeli
  leader Begin to the U.S. to negotiate terms
• The Camp David accords in 1979 led to a peace
  treaty between Egypt Israel, but alienated
  other Arab nations

17
Celebrating the Camp David Accords Menachem
Begin, Jimmy Carter, Anwar Sadat
18
The Cold War Resumes

• During the Carter years, the Cold War rivalry
  between the U.S. USSR grew due to
• A new arms race as the U.S. adopted new MX
  missiles Trident submarines
• SALT II failed to make lasting arms reduction
• Increased U.S.-Sino relations put the USSR on the
  defensive

19
Ohio-class submarine with
Trident nuclear missile capability
20
The Cold War Resumes

• Détente ended when the USSR invaded Afghanistan
  in 1979
• The U.S. interpreted the attack as a move to take
  the Middle East responded with
• Economic embargo of the USSR
• Boycott of the Moscow Olympics
• Aid to the Afghani resistance

Carter hoped to limit nuclear arms advance
human rights, but found himself in a heightened
Cold War
21
Soviet Invasion of Afghanistan, 1979
22
The Iranian Hostage Crisis

• The Camp David victory was offset by the 1979
  Iranian hostage crisis
• Exiled Islamic fundamentalist Ayatollah Khomeini
  led a coup against U.S.-backed the shah
• When Carter allowed the shah to enter the U.S.
  for medical aid, irate mobs in Tehran took 52
  hostages from the U.S. embassy

23
Quest for Peace in the Middle East

• Carters attempts at diplomatic, military,
  economic threats failed to bring a return of the
  hostages
• In 1980, Carter approved a rescue mission that
  was aborted after 2 helicopters crashed
• The perceived blunders inability of Carter to
  end the hostage crisis hurt Carter in his
  re-election bid in 1980

24
ConclusionsA Failed Presidency
25
A Failed Presidency

• Carters failures with inflation, Iran,
  Afghanistan overshadowed his foreign policy
  victories with the Panama Canal the Middle East
  
• The failures of Johnson, Nixon, Ford, Carter
  led to a desire among Americans for a strong
  leader who could face both domestic foreign
  challenges

Carters 1980 approval rating was 23