Crisis in the 1970 s Modern American History

Crisis in the 1970 s Modern American History

Stagnant Economy • OPEC establishes an embargo and raises oil prices for nations in support of Israel during the Yom Kippur War, causing shortages and inflation. • In 1971, for the first time since 1889, the U. S. imported more than it exported. • Stagflation – recession coupled with high inflation

Continued • Nixon attempts to curb inflation, with little success. • Gerald Ford establishes WIN “Whip Inflation Now. ” – Heavily vetoes the Democratic Congress Ford’s Foreign Policy • Ford continues Nixon’s policies abroad. • Retains Kissinger as Secretary of State

Trends

The Election of 1976 Gerald Ford [R] Jimmy Carter [D]

Carter’s Economic Policies • Creation of the Department of Energy • Urges Americans to fight a “war” on rising energy prices. • Supports deregulation of the oil industry. • None too successful, more Middle-Eastern conflicts lead to another fuel shortage. • Carter’s approval falls to lower than Nixon’s during Watergate.

Carter’s Foreign Policy • Wants the U. S. to deal morally and honestly with foreign nations. • Strong support for human rights. • Promotes transfer of Panama Canal to Panama • Embargo against the Soviet Union and boycott of the 1980 Olympic Games in Moscow

Carter in the Middle East • 1978 Camp David Accords peace agreement between Egypt and Israel. • U. S. supported shah of Iran becomes unpopular and is ousted. • Ayatollah Khomeini – new leader of Islamic republic of Iran distrusts the U. S. • 52 Americans taken hostage at the American Embassy in Tehran.