The “Lean Years”The “Lean Years”The Presidencies The Presidencies of Ford & Carterof Ford & Carter

Essential QuestionEssential Question: : Why did the economic & foreign policies Why did the economic & foreign policies of Ford & Carter fail to meet the needs of Ford & Carter fail to meet the needs of America in the late 1970s? of America in the late 1970s?

The “The “Overextended SocietyOverextended Society” of the 1970s was defined ” of the 1970s was defined by:by: Low economic growth, high prices, & rising unemployment Low economic growth, high prices, & rising unemployment Distrust of the government due to the Watergate scandalDistrust of the government due to the Watergate scandal ““Passionless presidents” who failed to project clear Passionless presidents” who failed to project clear

leadershipleadership An end of Nixon-era détente & resumption of Cold War An end of Nixon-era détente & resumption of Cold War

rivalriesrivalries

The 1970s: A Crisis in The 1970s: A Crisis in ConfidenceConfidence

The economy & mood in America were so bad in the 1970s that the decade was

called the “Overextended Society”

In the 1950s, the economy was so good that the decade was referred

to as the “Affluent Society”

In the 1920s, the economy was so good that the decade was

referred to as the “Roaring 20s”

The U.S. Economy The U.S. Economy in the 1970s in the 1970s

In the 1970s, 2 great oil shocks hurt the U.S. economy:In the 1970s, 2 great oil shocks hurt the U.S. economy: In 1973, the Arab members of OPEC initiated a 5% cut on In 1973, the Arab members of OPEC initiated a 5% cut on

production & an embargo against the U.S.production & an embargo against the U.S. The Iranian Revolution in 1979 cut off oil & led to another The Iranian Revolution in 1979 cut off oil & led to another

gas-shortage & soaring interest ratesgas-shortage & soaring interest rates

Energy and the Energy and the EconomyEconomyTo punish Israel’s allies when Egypt

& Syria attacked against IsraelThe fuel shortage led to a 200% increase in the price of gas & home heatingLed to worst recession since Depression

The OPEC oil embargoIranian Revolution

The Oil ShocksThe Oil Shocks: : Price Increases of Crude Oil & Price Increases of Crude Oil & GasolineGasoline

In 2008; Remember when gas prices hit $4.00?

These oil shocks forced the U.S. to realize its dependency These oil shocks forced the U.S. to realize its dependency on other nations for oil & led to action:on other nations for oil & led to action: NixonNixon formedformed thethe EPAEPA toto oversee industry’s environmental oversee industry’s environmental

impactimpact The new The new Dept of EnergyDept of Energy (1977) emphasized conservation & (1977) emphasized conservation &

domestic energy domestic energy productionproduction Still…U.S. oil imports Still…U.S. oil imports roserose 50% from 1973 to 1979 50% from 1973 to 1979

The Search for an The Search for an Energy PolicyEnergy PolicyMandated gas mileage

requirements, speed limits, & price controls

on domestic oilNuclear plants & Alaskan oil pipeline

The 1970s economy grew stagnant:The 1970s economy grew stagnant:Unemployment grew to 9% Unemployment grew to 9% Heavy industry jobs fell due to Heavy industry jobs fell due to outsourcing & foreign competitionoutsourcing & foreign competition

1970s experienced huge inflation:1970s experienced huge inflation:Due to Vietnam deficit spending, Due to Vietnam deficit spending, global food shortage, oil shocksglobal food shortage, oil shocks

Massive price increases led to a Massive price increases led to a 5.5% decrease in “real income” for 5.5% decrease in “real income” for average Americansaverage Americans

A Troubled American EconomyA Troubled American EconomyWorkers’ wages did not keep up with rising prices

Milk & hamburger prices rose 200%

Bread prices rose 400%Car prices rose 72%A stagnant economy

High inflationSTAGFLATION

Neither Ford nor Carter could stop “stagflation;” Carter’s policies actually drove interest rates up as high as 20%

Gerald Ford failed to restore public confidence after Gerald Ford failed to restore public confidence after Watergate:Watergate: Ford pardoned Nixon for any crimes he may have committed Ford pardoned Nixon for any crimes he may have committed He revealed a number of past CIA assassination attempts & He revealed a number of past CIA assassination attempts &

appointed George Bush to reorganize the CIAappointed George Bush to reorganize the CIA Vetoed 39 Great Society-style bills initiated by Congress Vetoed 39 Great Society-style bills initiated by Congress

The Ford AdministrationThe Ford Administration

In 1976, dark-horse Jimmy Carter won the Democratic In 1976, dark-horse Jimmy Carter won the Democratic nomination & campaigned as an outsider, an honest nomination & campaigned as an outsider, an honest man, with fresh leadershipman, with fresh leadership

Carter won a narrow victory due to social class & racial Carter won a narrow victory due to social class & racial factors:factors: Affluent, well-educated, suburban voters chose FordAffluent, well-educated, suburban voters chose Ford Socially & economically disadvantaged voted for CarterSocially & economically disadvantaged voted for Carter

The 1976 CampaignThe 1976 Campaign

Ford’s foreign policy Ford’s foreign policy blunder during the TV blunder during the TV debates in 1976: “debates in 1976: “There is There is no Soviet domination of no Soviet domination of Eastern EuropeEastern Europe””

Carter entered office with no clear political philosophy Carter entered office with no clear political philosophy or vision:or vision: Deregulated the airline industry which lowered prices Deregulated the airline industry which lowered prices But…his attempts to reform welfare & Social Security failedBut…his attempts to reform welfare & Social Security failed He had no remedy for soaring inflation, interest rates, & He had no remedy for soaring inflation, interest rates, &

bank failures that hurt the economybank failures that hurt the economy

Disenchantment with Disenchantment with CarterCarter

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”

Carter’s Human Carter’s Human Rights Foreign Rights Foreign Policy Policy

America’s international dominance declined sharply in America’s international dominance declined sharply in 1970s due to:1970s due to: Americans’ increasing Americans’ increasing desires to avoid “another Vietnam”desires to avoid “another Vietnam” The War Powers Act forced the president to consult with The War Powers Act forced the president to consult with

Congress before sending troopsCongress before sending troops The escalating military costs & deficit spending made The escalating military costs & deficit spending made

sustaining the Cold War impossible sustaining the Cold War impossible

A Declining SuperpowerA Declining Superpower

Carter focused his foreign policy on a commitment to Carter focused his foreign policy on a commitment to human rights:human rights: Spoke out against repressive regimes in Latin America & Spoke out against repressive regimes in Latin America &

apartheid in South Africaapartheid in South Africa Reformed the CIA to operate “within the law” (but only Reformed the CIA to operate “within the law” (but only

briefly)briefly) Negotiated the return of the Panama Canal to Panamanians Negotiated the return of the Panama Canal to Panamanians

Foreign Policy & Foreign Policy & Human RightsHuman Rights

In Nov 1977, Egyptian leader Sadat made an appeal with In Nov 1977, Egyptian leader Sadat made an appeal with Israel to settle the October War of 1973Israel to settle the October War of 1973

Carter invited Egyptian leader Sadat & Israeli leader Carter invited Egyptian leader Sadat & Israeli leader Begin to the U.S. to negotiate termsBegin to the U.S. to negotiate terms

The The Camp David accordsCamp David accords in 1979 led to a peace treaty in 1979 led to a peace treaty between Egypt & Israel, but alienated other Arab nations between Egypt & Israel, but alienated other Arab nations

Foreign Policy & Human Foreign Policy & Human RightsRights

Celebrating the Camp David Accords: Menachem Begin, Jimmy Carter, & Anwar Sadat

During the Carter years, the Cold War rivalry between During the Carter years, the Cold War rivalry between the U.S. & USSR grew due to:the U.S. & USSR grew due to: A new arms race as the U.S. adopted new MX missiles & A new arms race as the U.S. adopted new MX missiles &

Trident submarines Trident submarines SALT IISALT II failed to make lasting arms reduction failed to make lasting arms reduction Increased U.S.-Sino relations put the USSR on the Increased U.S.-Sino relations put the USSR on the

defensive defensive

The Cold War ResumesThe Cold War Resumes

Détente ended when the USSR invaded Afghanistan in Détente ended when the USSR invaded Afghanistan in 1979 1979

The U.S. interpreted the attack as a move to take the The U.S. interpreted the attack as a move to take the Middle East & responded with:Middle East & responded with: Economic embargo of the USSR Economic embargo of the USSR Boycott of the Moscow OlympicsBoycott of the Moscow Olympics Aid to the Afghani resistance Aid to the Afghani resistance

The Cold War ResumesThe Cold War Resumes

Carter hoped to limit nuclear arms & advance human rights, but found himself in a heightened Cold War

Soviet Invasion of Afghanistan, 1979

The Camp David victory was offset by the 1979 Iranian The Camp David victory was offset by the 1979 Iranian hostage crisis:hostage crisis: Exiled Islamic fundamentalist Exiled Islamic fundamentalist Ayatollah KhomeiniAyatollah Khomeini led a coup led a coup

against U.S.-backed the shah against U.S.-backed the shah When Carter allowed the shah to enter the U.S. for medical When Carter allowed the shah to enter the U.S. for medical

aid, irate mobs in Tehran took 52 hostages from the U.S. aid, irate mobs in Tehran took 52 hostages from the U.S. embassy embassy

The Iranian Hostage The Iranian Hostage Crisis Crisis

Carter’s attempts at diplomatic, military, & economic Carter’s attempts at diplomatic, military, & economic threats failed to bring a return of the hostagesthreats failed to bring a return of the hostages In 1980, Carter approved a rescue mission that was aborted In 1980, Carter approved a rescue mission that was aborted

after 2 helicopters crashedafter 2 helicopters crashed The perceived blunders & inability of Carter to end the The perceived blunders & inability of Carter to end the

hostage crisis hurt Carter in his re-election bid in 1980hostage crisis hurt Carter in his re-election bid in 1980

Quest for Peace in the Quest for Peace in the Middle EastMiddle East

ConclusionsConclusions::A Failed A Failed PresidencyPresidency