2. Ford & Carter 1974-1980

3. Gerald Ford’s Presidency Ford takes office amid Nixon controversy Pardon of Nixon will hurt his popularity Economy Severe economic recession inherited from Nixon Ford vetoed Keynesian spending Asked for voluntary wage and price controls Economy hurt by continuing energy crisis Crisis will continue into Carter administration Foreign policy Fall of Saigon (1975) Death of Mao in China

4. Based on the last two Presidents, speculate which way the country will move in the 1976 election?

5. 1976 Election Republicans choose to stick with Gerald Ford Narrowly beat Ronald Reagan in primary Facing major problems: economy/image Democratic candidate: Jimmy Carter Political outsider Portrayed himself as a common man US public sick of politics Evangelical Christian Appealed to emerging conservative movement Carter will easily defeat Ford

7. Jimmy Carter as President Carter is largely ineffective as President Assumed economic problems of Nixon/Ford administrations High unemployment High inflation Stagnant economy High energy prices Was a moral idealist as President Misread political sentiment Refused to pressure Congress to pass his legislation Domestic record undistinguished Took unpopular moral stands in foreign policy Carter will leave office as one of the most unpopular US Presidents Ironic because of role as a former President

8. Why do idealist Presidents frequently end up with extremely low public opinion numbers? (Hoover, Truman, Carter)

9. Carter’s Domestic Policy Lacked a clear focus for his legislative agenda Will jump between moderate and liberal issues Liberal agenda: Diverse administration Granted Presidential pardons to Vietnam draft dodgers Expands size of the government Department of Education Department of Energy Environmental protection laws Moderate agenda: Deregulation of American industries Decline in federal spending

10. Carter’s Economic Policy Inconsistent approach to the economy Attempted to impose voluntary price and wage freezes Unsuccessful just like previous two Presidents Institutes a tight monetary policy Appoints Paul Volcker as Federal Reserve Chairman Volcker raises interest rates to curb inflation Interest rates will reach 20% High rates hurt business growth Little change occurs in the economy 1980-Unemployment 7.5%/Inflation 12% Energy crisis will result in gas shortages/lines Carter takes the blame for the economy

13. Carter’s Foreign Policy Carter’s foreign policy will be criticized for placing idealistic priorities ahead of American interests Panama Carter drafts a treaty returning the canal to Panama China Carter opens diplomatic relations with China Afghanistan USSR invades in 1979 Decline of détente SALT II Treaty falls apart 1980 Olympic boycott Carter criticized for not being more aggressive or placing humanitarian interests ahead of US needs

14. Carter’s Foreign Policy Camp David Accords Perhaps the greatest success of Carter’s presidency Historic summit between Israel & Egypt Israel gets recognition Egypt gets return of Sinai peninsula Iran Perhaps the greatest failure of Carter’s presidency 1978 revolution overthrows US backed Shah Iranian radicals storm US embassy seizing 400 hostages 52 remain in Iran Negotiations and military rescue mission fail Hostages won’t be returned until 1980 inauguration of Reagan Carter loses US public opinion (1979 25% approval rating)