1. New Voice, New Leader
Chapter 29, Lesson 5

2. New Leader Democrats Nominate Jimmy (GA) Carter in 1976
Honesty, openness, trust, and morality
“1976 will not be a year of politics as usual.”
“New mood in America.”

3. Republican Nominations
Ford runs against former California Governor Ronald Reagan
Ford wins narrow victory
Chooses Bob Dole as his running mate

4. Election of 1976
Issues: economy, reputation of the candidates, desire for change
Carter elected by slim margin even though Ford carried more states
First President from the deep south since prior to the Civil War.

5. Changes Carter Made
Carter’s goal is to restore people’s confidence in their government
Wants gov’t to provide better service at a lower cost
Adds two departments
Dept. of Energy (1977)
Dept. of Education (1979)

6. Energy
In the 1970’s, American’s made up 6% of the population and consumed 33% of the world’s energy
Millions of barrels of oil are imported from the Middle East
Congress passes a law that lowers tax bill for companies that use less energy
Companies are encouraged to produce smaller cars

7. Inflation 1978 – Inflation is a major problem
Prices go up and workers demand higher wages
Higher wages increase the cost of doing business
Businesses raise prices to cover higher costs
By 1979, inflation was over 11%
Normal inflation is 3-5% per year

8. Inflation in the 1970’s

9. Problems in Central America
Panamanian Gov’t wants control of Panama Canal from U.S.
Carter signs treaties giving control in 2000
Treaty gives U.S. permission to defend canal in case of any attack
Nicaragua fights a civil war and dictator Anastasio Somoza is overthrown
U.S. recognizes new government
Political violence in El Salvador breaks out
Archbishop who speaks out against the military is assassinated
Later 6 Americans are killed
Carter withholds aid to El Salvador until investigation Is completed

10. Problems with Israel U.S. supports independent state of Israel
Israel’s neighbors refuse to recognize Israel’s right to exist
They claimed Israel’s land belongs to the Arabs
Carter invites Egypt's Anwar Sadat and Israel’s Menachem Begin to sig a peace treaty

11. Problems with Israel Arab nations feel betrayed by Sadat
The treaty did not deal with Palestine or Jerusalem – lands that had been taken over by Israel during earlier wars
Palestine Liberation Organization (PLO) continued terrorist attacks against Israel
Israel bombed PLO members in neighboring Lebanon