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• Gerald Ford and Jimmy Carter • Objective: to determine the effectiveness of Carter’s response to decreasing faith in the US government. I. Gerald Ford • Ford’s short presidency – President Ford granted a full pardon to Richard Nixon for any crime he may have committed. – Ford tried to cut government spending to curb inflation but the Democratic Congress passed many spending bills against his wishes. – In foreign affairs, Ford continued the policy of détente and kept Kissinger as secretary of state. – Congress refused to allow Ford to take part in Vietnam or Cuba, but he did recover the cargo ship—the Mayaguez—from the Cambodian navy. I. Ford • Loss of Public Confidence – Ford was perceived as a comical figure • LBJ’s remark – Pardon of Nixon made his popularity plummet • High 60s to low 30s in the polls II. The Economy of the 1970s • Out of control inflation! – Inflation rose to over ten percent for much of the decade. – Stagflation: inflation high, GDP growth low – Occurred primarily during the Nixon and Ford presidencies, but greatly shaped the Carter presidency • Causes: wage and price controls (shortages) under Nixon, Oil embargo II. The Economy of the 1970s • Decaying Cities – White Flight (“Donut Hole Effect”) – Fleeing Factories • • • • Rust Belt in the North, declining South Factories moved to Latin America, South East Asia Foreign competition, e.g. auto industry Labor suffers, e.g. AFL-CIO loses 30% of its membership III. Jimmy Carter • Candidate Carter – Jimmy Carter came across as an honest man of deep religious faith who promised not to lie to the American people. – Carter immediately tried to help the nation heal some of the wounds of the past. • Ex. He issued a pardon to thousands of Vietnam War draft dodgers. – Carter tackled problems in the economy and with energy. – Finally, Carter tried to deal with environmental issues. III. Jimmy Carter • Carter the Reformer – “Studied Informality” – Pardoned draft dodgers – Removed funding for the B-1 Bomber – Established the “Superfund” – Carter made the development of a national energy policy a priority. III. Jimmy Carter • Energy Policy – Created the Department of Energy • Fund research for alternative fuels • Regulate energy producers – Emergency Natural Gas Act – However, his successes were largely forgotten by 1979 during another gas shortage (Iranian Revolution) III. Jimmy Carter Environmental Successes – Believed that conserving fuel was a key way to avoid plundering the environment – Passed the Alaska National Interest Lands Conservation Act • The act protected more than 100 million acres of land and doubled the size of the nation’s park and wildlife refuge system. III. Jimmy Carter Environmental Losses • In 1979 a mishap at a nuclear power plant on Three Mile Island terrified the nation. • Although little radiation was released, public concern about the safety of nuclear power grew. • Chemicals that a company dumped in New York began to seep up through the ground at Love Canal and were linked to high rates of birth defects. • Experts warned that there were likely many more toxic waste sites around the nation. III. Jimmy Carter Carter and the Economy – Carter was unable to bring down inflation. – Carter’s energy policies were successful at helping reduce American dependence on foreign oil but this was not immediately apparent • American production of energy increased under Carter. III. Jimmy Carter • Public Confidence plummets – Foreign policy disasters – Energy program too complex – Really, really unfortunate press coverage – High prices and run away inflation • “Malaise” Speech in 1979