The Ford & Carter Years

Gerald Ford Upon becoming vice president after Spiro Agnew’s resignation, Gerald Ford candidly admitted his limitations by saying – “I’m a Ford, not a Lincoln.” Ford, however, tackled American problems with fervor. To combat the poor economy, Ford responded with his WIN program or “Whip Inflation Now.” WIN called on Americans to cut back on their use of oil and gas and other sources of energy. It failed with no incentives.

Ford Economic Policy To curb inflation, Ford supported a “tight” monetary policy – cutting government spending and encouraging the Federal Reserve Board to restrict credit through high interest rates. Ford’s actions triggered the worst recession in 40 years.

Ford’s Foreign Policy Regarding foreign policy, Gerald Ford pushed ahead with Nixon’s policy of negotiation with China and the Soviet Union – realpolitik – In 1974 – Ford traveled to Helsinki Finland and signed the Helsinki accords, which was an agreement with the USSR and 35 other nations which committed to increased cooperation between Eastern and Western Europe.

Ford’s Downfall In the end, Ford suffered politically from his pardoning of Richard Nixon over the Watergate Scandal. Ford pardoned Nixon in an effort to “Mend” the nation. The American people were convinced that it was a corrupt bargain.

1976 – Jimmy Carter As a result of Ford’s unpopularity, the Democrats, led by “Washington Outsider” Jimmy Carter, won the White House. Carter, a former Georgia peanut farmer, won largely because he seemed honest and trustworthy to the American people.

Carter Struggles with the Economy & Energy President Carter considered the Energy Crisis the most important issue facing the nation. Problem: Dependence on foreign oil. Carter eventually succeeded in passing the National Energy Act – which: –Taxed gas guzzling cars –Removed price controls on oil and natural gas produced in the U.S. –Provided tax credits for alternative energy companies

Carter’s Foreign Policy Regarding Foreign Policy, Carter parted ways with Nixon & Ford and abandoned realpolitik. Carter based his Foreign policy on “Human Rights.” Like Woodrow Wilson, Carter pushed American Core Democratic Values throughout the world. The result of Carter’s policy was the collapse of Détente. Although America’s relationship with the USSR was strained, Carter and Brezhnev agreed to the SALT II Treaty: which failed to reduce nuclear weapons, but limited the numbers of weapons that both countries would build.

Carter’s Biggest Foreign Achievement Part of America’s problem with energy inflation was social unrest in the Middle East. Carter’s biggest foreign achievement would be in response to the crisis in the M.E. The Camp David Accords became the first signed peace agreement between Israel and an Arab country - Egypt.

Continued Unrest Unrest in the Middle East continued when in 1979 the American supported shah of Iran was overthrown by the Ayatollah Ruhollah Khomeini. During the coup, 52 Americans were taken hostage at the U.S. embassy. The hostages were held in captivity for 444 days – making America appear helpless in the face of terrorism. The event became known as the Iran Hostage Crisis. By the end of the Carter Administration – America suffered a crisis of confidence.