Ford, Carter, Reagan

1
Ford, Carter, Reagan

• Chapter 35

2
Nixon Resigns
3
Ford is President, 74

• First President not to be elected President or
  Vice President
• Nelson Rockefeller he appoints VP
• Pardons Nixon to heal the country
• Congress enacts War Powers Act to control
  Presidential power-must inform w/I 48 hours of
  sending troops, must recall unless Congress
  approves

4
Ford Inherits Oil Crisis

• Libyas Muammar Qaddafi demands higher prices
• Yom Kippur War Arab nations refuse to sell to
  America for supporting Israel
• OPEC cartel increases prices
• GAS LINES- our response Drive 55
• Alaskan pipeline-Exxon Valdez oil spill

5
Ford Inherits Runaway Inflation

• Started with build up for Vietnam-spiraling
  prices upward
• Congress passes expensive programs
• Deficit increases so does inflation
• Oil crisis increases prices on everything
• Recession slows down economy
• Bright spot- Kissinger- Shuttle diplomacy

6
Carter Wins in 76

• Popular because he was not involved in Vietnam or
  Watergate- an outsider
• Worked against him once in office didnt know
  how to work Congress
• Eliminated pork barrel projects which angered
  many politicians
• PACs and special interests made changes difficult
  to pass
• Stagflation-inflation in prices yet economy cant
  grow

7
Carter Years Riddled with Problems

• The US needs to import more than export trade
  deficit-dollar declines in value
• Environment-catalytic converters required but
  cost of cars goes up. Alaska reserve
• Coal-produces acid rain, cant substitute
• Nuclear Power-3 Mile Island accident and disposal
  of spent uranium difficult
• US friendly Shah of Iran ousted79, fanatic
  Ayatollah Khomeini in charge

8
More on Carter

• Hard on Human Rights violations (still an
  advocate today)-USSR disapproves
• Despite disapproval SALTII signed never
  ratified by Congress
• Control of Panama Canal-back to Panama
• 77 Camp David Peace Accords-Israel (Begin) and
  Egypt (Sadat)
• Iran Hostage Crisis-Ayatollah Khomeini seized 52
  from US embassy to protest US medical help to
  deposed Shah-kept them for 444 days-released for
  Reagan
• USSR invades Afghanistan, boycott 1980 Olympics

9
Conservative Reagan Wins in 1980

• Shrinks govt spending to reduce deficit EPA
  affects air/water quality, Welfare affects
  families w/kids, more poverty, but c/not cut Soc
  Sec, Vets Benes
• Increased spending on defense SDI (Strategic
  Defense Initiative- Star Wars), Stealth Bomber
• Voluntary school prayer
• Assassination attempt

10
Supply Side Economics

• Opposite of Keynesian economics to build economy
  by government spending to influence demand
• Supply side economics
• Cut taxes of business and wealthy
• They reinvest in economy, more people work
• Trickle down effect into economy as a whole
• But many loopholes so taxes even lower than
  anticipated by Reaganomics

11
Fed Reserve Policies

• Paul Volker, then Chair of Fed, wanted to control
  runaway inflation by tightening money supply
• Caused interest rates to soar-bad if you borrow,
  good if you save (21 interest!)
• Threw economy into recession so inflation down
  but fewer working so less tax revenue so
  government spending up, deficit grew
• Growing deficit made US dollars more expensive so
  US goods more expensive, trade def grows, lower
  standard of living for US

12
Technology Lifts U.S. Up

• Smokestack economy changing to service economy,
  Citizens must be retrained
• Computer increases productivity of US workers
  tremendously-lowers US prices
• New worldwide industry Silicon Valley
• Scientific advances- medical, gene technology,
  cloning, aerospace
• Labor-give-backs, Air Traffic Controllers

13
Downfall of Communism Begins

• US build up of weapons-cruise missiles-threatens
  balance of power
• Changes in Soviet leadership Gorbachev proposes
  Glasnost or open society and perestroika or
  restructuring
• Soviets fear Star Wars-cant match
• Soviets pull out of Afghanistan
• Poland has elections and Solidarity party wins
  (non-communist)

14
Reagan Influences Supreme Ct

• Sandra Day OConnor first female
• William Rehnquist- named Chief Justice
• Antonin Scalia-first Italian
• Robert Bork rejected -too conservative
• Douglas Ginsburg-withdraw after found smoked pot
  while a prof at Harvard
• Andrew Kennedy-approved-moderate

15
Iran-Contra Scandal

• Marxist governments starting in Nicaragua and El
  Salvador
• CIA helps contras try to fight marxists
• Learn that US struck deal with Iran (who we
  detest) to arm contras-Reagan denies any
  knowledge, then confesses traded arms for
  hostages in Lebanon
• Fires NSA advisors Poindexter and Oliver
  North-hides in Swiss accts for deniability

16
I think Nancy is WEIRD

• Known as a snob
• Redecorated White House in recession
• Wore designer clothes and hairdo
• The gaze
• Control freak
• Astrology good days
• Just Say NO