Presidents Ford & Carter Economic Despair

Ford Becomes President Appointed VP when Spiro Agnew resigned Believed in hard-work and self-reliance Described as conservative in fiscal affairs, moderate in domestic affairs, and an internationalist in foreign affairs. Became the first non-elected President

Economic Problems Inflation was high and unemployment was rising. Economists call the condition stagflation. Created the “WIN” or “Whip Inflation Now” program – Based on voluntary actions Supported an increase in unemployment benefits – only helped slightly.

Foreign Policy War Powers Act, 1973 – President must notify Congress with 48 hours of sending troops overseas. – Troops may not stay more than 60 days without Congressional Approval – Congress can demand that troops return home Helsinki Accords – European security agreements – Pledged economic cooperation, respect for borders and promote human rights

Carter Presidency Supported spending cuts Broke away from traditional Democrats and lost some support from his party Considered a “Washington Outsider”

Foreign Policy Middle East Peace – Camp David Accords: framework for peace between Israel and Egypt – Did not solve all Mid-East problems Breakdown of Détente – 1979 Soviet invasion of Afghanistan cools warm relations with the Soviets – US halted shipments of grain to Soviet Union – Boycotted 1980 Olympic Games in Moscow

Domestic Issues Economic Instability – Cut government spending – Increased unemployment – Interest rates soared Affirmative Action: gave special consideration to minorities to makeup for past discrimination – University of CA vs. Bakke: Court case that upheld the use of affirmative action in college admissions.