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Ford and Carter Years Ford Becomes President Gerald R. Ford- The 38th President of the United States that came to power when President Nixon resigned President Ford pardoned Richard Nixon in an attempt to move the country beyond Watergate, but the move cost Ford a lot of public support By the time Ford took office, American’s economy had gone from bad to worse with inflation and unemployment continuing to rise After the massive OPEC oil-price increases in 1973, gasoline and heating oil costs had soared, pushing inflation from 6% to over 10% by 1974 Whip Inflation Now (WIN)- Ford’s program that called for Americans to cut back on their use of oil and gas and o take other energy-saving measures “Tight Money”-Ford’s program that cut government spending and encouraged the Federal Reserve Board to restrict credit through high interest rates These actions triggered the worst economic recession in years For’s Foreign Policy Following Kissinger’s advise, Ford pushed ahead with Nixon’s policy of negotiation with China and the Soviet Union Helsinki Accords-35 nations met and agreed on a series of promises of greater cooperation between the nations of Eastern and Western Europe President Ford ran into problems in Southeast Asia when the 1973 cease-fire had broken down in Vietnam; Ford asked Congress for over $722 million for aid but Congress refused Jimmy Carter Wins Election of 1976 Jimmy Carter- A Georgia Governor, Democrat, and peanut farmer that won the election of 1976 for President of the United States Jimmy Carter beat Ford in the election because the Republican party was split over the leadership of Ford and the Watergate Scandal After settling into office, Carter stayed in touch with the people by holding Roosevelt-like “fireside chats” on radio and television Carter failed to reach out to Congress in a similar way, refusing to play the “insider” game of deal making Both parties on Capitol Hill often joined to sink the president’s budget proposals, as well as his major policy reforms of tax and welfare programs Carter’s Domestic Agenda Carter considered the energy crisis the most important issue, believing that the biggest problem was America’s reliance on imported oil, so he urged Americans to cut consumption Carter presented Congress with more than 100 proposals on energy conservation and development National Energy Act- Placed taxes on gas-guzzling cars, removed price controls on oil and natural gas produced in the U.S., and extended tax credits for alternative energy In the summer of 1979, renewed violence in the Middle East produced a second major fuel shortage in the U.S. and inflation soared from 7.6% to 11.3% By 1980, inflation had climbed to nearly 14% and the standard of living in the U.S. slipped from first place to fifth place in the world Carter’s Foreign Policy Human Rights Policy- Carter used moral principles as a guide for U.S foreign policy by promoting freedoms and liberties listed in the Declaration of Independence and Bill of Rights Supporters of the Containment policy felt that the President’s policy undercut allies such as Nicaragua, a dictatorial but anti-communist country Carter’s firm insistence on human rights led to a breakdown in relations with the Soviet Union because of the treatment of opponents of government policies SALT II- agreement that provided limits on the number of strategic weapons and nuclear-missile launchers that the Soviets and U.S. could produce When the Soviets invaded Afghanistan, Carter became angry and refused to fight for the SALT II agreement, and the treaty died Camp David Accords Camp David Accords- 12 days of negotiation and arm-twisting, Carter helped forge peace between long-time enemies Israel and Egypt When peace talks stalled between Egypt and Israel, he invited the two leaders to Camp David, the Presidential retreat in Maryland Under this first signed peace agreement with an Arab country, Israel agreed to withdraw from the Sinai Peninsula, Egypt in turn, formally recognized Israel’s right to exist in the Middle East The Iran Hostage Crisis By 1979, the shah of Iran, an ally of the U.S. was in deep trouble and many Iranians resented his regime’s widespread corruption and dictatorial tactics In January 1979, revolution broke out and the Ayatollah led the rebels in overthrowing the shah and establishing a religious state based on strict obedience of Muslim law Ayatollah Khomeini- Iran’s Muslim religious leader that led religious rebels in overthrowing the shah (King) of Iran President Carter allowed the shah to enter the U.S. for cancer treatment, and the act infuriated the revolutionaries in Iran On November 4th, 1979, armed students seized the U.S. embassy in Tehran and took 52 American hostages, demanding the U.S. return the shah back to Iran Carter refused, and a painful year-long standoff followed, in which the U.S. continued quiet but intense efforts to free the hostages The captives were finally released on January 20, 1981, shortly after the new president, Ronald Reagan, was sworn in as president