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

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

3. Energy and the Economy
The fuel shortage led to a 200% increase in
To punish Israel’s allies when Egypt
the price of gas & home heating
& Syria attacked against Israel
■In the 1970s, 2 great oil shocks
hurt the U.S. economy:
–In 1973, the Arab members of
Led to worst recession since Depression
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

4. The Oil Shocks:
Price Increases of Crude Oil & Gasoline
ThIer aOnPiaEnC R oeivlo elmutbioanrgo

5. The Search for an Energy Policy
■These oil shocks Mandated forced gas the mileage
U.S.
requirements, speed
to realize its dependency limits, & price on controls
other
nations for oil & led on to domestic action:
oil
–Nixon formed the EPA to oversee
Nuclear plants &
Alaskan oil pipeline
industry’s environmental impact
–The new Dept of Energy (1977)
emphasized conservation &
domestic energy production
–Still…U.S. oil imports rose 50%
from 1973 to 1979

6. A Troubled Workers’ wages American did not
Economy
■The keep 1970s up with economy rising prices
grew stagnant:
–Unemployment Milk & hamburger grew prices to rose 9%
200%
–Heavy industry jobs fell due to
outsourcing & foreign competition
A stagnant
economy
High
inflation
STAGFLATION
Car prices rose 72% Bread prices rose 400%
■1970s experienced huge inflation:
–Due to Vietnam deficit spending,
global food shortage, oil shocks
–Massive Neither Ford price nor increases Carter could led stop
to a
“stagflation;” 5.5% decrease Carter’s in “policies real income”
actually
drove interest rates up to 20%
for average Americans

7. The Presidency of
Jimmy Carter (D)
1976-1980
Essential Question:
Why did the economic & foreign
policies of Carter fail to meet the
needs of America in the late 1970s?

8. The 1976 Campaign
■In 1976, 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

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

10. Carter’s Domestic Policy
■ The Community Reinvestment Act of
1977 was designed to encourage
commercial banks and savings
associations to help low- and moderate-income
neighborhoods.
–Supported the changing role of
government to REGULATE the free-market
and protect “an abundance of
liberty for all” (Great Society goal)

11. Supreme Court Cases
1972- Wisconsin V Yoder
– Amish children do not have to go to school
past the 8th grade. Parents’ religion
outweighed the right of state to educate
■ 1973 White v Regester
– Court discontinued MULTI-MEMBER
DISTRICTS in favor of SINGLE member
districts due to the fact it would favor the
wealthy/whites over the minorities in
representation.

12. Domestic Disenchantment with Carter
■Carter entered office with no clear
political philosophy or vision:
–Deregulated the airline industry
which lowered prices
–But…his 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 -discussed the importance of
conserving energy but blamed Americans for
creating a “crisis in confidence”

13. A Declining Superpower
■America’s 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

14. Carter’s Human Rights
Foreign Policy

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 widened due to:
– SALT II failed to make lasting arms
reduction
• The Senate did not ratify SALT II in light of
USSR’s invasion of Afghanistan
– A new arms race as the U.S. adopted
new MX missiles & Trident submarines
– 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 Carter U.S. hoped interpreted to limit nuclear the attack arms
as
a move & advance to take human the rights, Middle but East found
&
responded himself in with:
a heightened Cold War.
–Economic $embargo$ of the
USSR
–Boycott of the Moscow Olympics
–Aid to the Afghani resistance

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
■Carter’s 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. A Failed Presidency
■Carter’s failures with inflation,
Iran, & Afghanistan overshadowed
his foreign policy victories with the
Panama Carter’s 1980 Canal approval & the rating Middle was East
23%
■The failures of Johnson, Nixon,
Ford, & Carter led to a desire
among Americans for a strong
leader who could face both
domestic & foreign challenges