Final Unit 8 Notes
Economic Issues
-in the late 60s and early 70s there were increasing tensions between Israel (which the U.S. supported) and several other countries
-in 1973 several Arab countries in OPEC (Organization of Petroleum Exporting Countries) embargoed the sale of oil to countries who supported Israel and all member countries increased their prices by 400% leading to a fuel shortage in the U.S.
-this exacerbated other economic challenges facing the U.S. in the 1970s, most notably inflation
-increased foreign competition in some key industries led to deindustrialization in the U.S. with millions losing jobs
-these conditions led to “stagflation” where the economy was not growing yet prices were also rising
-Nixon implemented some price controls, though he walked them back as the recession continued
-Ford tried to use voluntary efforts to address the economic problems including WIN (Whip Inflation Now) that asked citizens and businesses to control their spending and prices (this was ineffective)
-Carter faced even greater increases of prices by OPEC that led to high energy prices (this was compounded by a bitterly cold winter) causing even more economic issues (interest rates reached over 20%)
-in what became known as his “Malaise Speech,” the American public felt like Carter was blaming them for their economic struggles (he talked about how Americans consumed too much energy; “a crisis of confidence”)
Ford’s Presidency
-he took over after Nixon’s resignation and inherited a tough political (Watergate/credibility gap) and economic (stagflation) climate
-people were extremely upset when he offered Nixon “a full, free, and absolute pardon” for any crimes he may have committed while President
-he continued to pursue better relations with the Soviets, but was unable to alleviate the economic problems
-he barely beat out Ronald Reagan to win the Republican nomination for the 1976 election
Election of 1976
-Democrats nominate Jimmy Carter, a peanut farmer and one term Governor, from Georgia
-he campaigned on being a Washington outsider and was able to defeat Ford
Carter’s Presidency
Domestic
-he created the Department of Energy to explore alternative energy sources and try to lessen U.S. dependence on foreign oil
-Love Canal was a neighborhood in New York that had been built on top of a toxic waste dumpsite
-once residents started getting sick they asked to be relocated; Carter finally provided federal funding to move the residents and clean up the site
-this would lead to Congress passing the Superfund in 1980 that provided $1.6 billion to clean up waste sites around the country
-there was a partial meltdown at the Three Mile Island nuclear power plant in PA in 1979
-this led to some Americans being wary of nuclear energy
Foreign Policy
-he stressed “Humanitarian Diplomacy” where the U.S. would try to focus on defending human rights
-the Senate ratified treaties to give Panama control of the Panama Canal
-Camp David Accords, a peace agreement between Israel and Egypt that Carter helped negotiate, was his greatest accomplishment
-it was significant as Egypt became the first country in the region to recognize Israel as a country
-he initially pushed for the ratification of the SALT II agreement that had been started by Ford, but when the Soviets invaded Afghanistan in 1979 he pulled it off the table
-he also pulled the U.S. out of the summer Olympics in Moscow and levied economic sanctions against the Soviets
-the U.S. had installed the Shah as the ruler of Iran way back in 1953, but his repressive regime was facing challenges by the 1970s eventually leading to the Iran Hostage Crisis
-most of the opposition came from supporters of the Muslim cleric, Ayatollah Khomeini
-the Shah ended up fleeing Iran and after supporters of Khomeini learned that he had been allowed to come to the U.S. for cancer treatment they stormed the U.S. embassy in Iran
-they took 53 Americans hostage and demanded the Shah be sent back to Iran in exchange for the release of the hostages (Carter refused)
-the Iran Hostage Crisis would end up dominating his final year(s) in office as his various attempts to secure the return of the hostages failed (economic sanctions/a failed military rescue)
-he did help negotiate the final deal for their release (the unfreezing of $7.9 billion of Iranian assets), but the hostages were not released until Reagan had been sworn into office on January 20, 1981 (after 444 days of being held)