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Ford through Reagan: Energy Crisis to Cold War's End

This chapter covers the presidencies of Gerald Ford and Ronald Reagan, including the energy crisis, Reaganomics, and the collapse of the Berlin Wall. It also discusses key events such as the Iranian Hostage Crisis and the Iran-Contra Affair.

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Ford through Reagan: Energy Crisis to Cold War's End

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  1. AP Chapter 30 Ford Through Reagan

  2. New President • Gerald Ford became VP after Agnew resigned and President after Nixon quit • Ford selected Nelson Rockefeller of NY as his VP

  3. Gerald Ford (R) 1974-1977

  4. 1st time in American history when the Pres. & VP were not elected by the people • Ford pardoned Nixon of any crimes dealing with Watergate • Very controversial decision

  5. 1st Oil Crisis • U.S depends heavily on oil from the Middle East • OPEC placed an embargo on oil to the U.S. in 1973 • Gas prices skyrocketed to all time highs • American factories were closing and union membership was in rapid decline

  6. Long Gas Lines

  7. People had to buy gas on odd/even days • U.S. automobile industry was badly damaged • Commonly called the “Energy Crisis”

  8. Energy Crisis • Led to a large demand for foreign cars (Rice Burners) • Alaskan Pipeline was built • 1974 embargo ended • U.S. still relies on M.E. oil

  9. Alaskan Pipeline

  10. Sunbelt/Snow Belt Communities • Many Americans began to migrate away from the Northeast • Retirees headed to warmer states • California became the most populated state • Income was distributed unevenly

  11. Carter’s Presidency • Election of 1976- Jimmy Carter (D) vs. Gerald Ford (R) • Carter encouraged deregulation of the airlines which lowered fairs • Carter was a bad president

  12. Amnesty for Draft Evaders- pardoned all those that dodged the draft during Vietnam • Three Mile Island- 1979 partial meltdown of a nuclear plant in Pennsylvania • Love Canal when a Buffalo, NY community was dealing with toxic land from chemicals being dumped into the soil • Rachel Carson wrote Silent Spring which dealt with the devastating effects of chemicals

  13. Three Mile Island

  14. New Conservatism • Rev. Jerry Falwell formed the Moral Majority to advocate tough laws against immoral behavior • New Right wing attacked the Roe v. Wade decision • Religious cults formed in large numbers during the 1970s

  15. Thaw in the Cold War • Helsinki Accords pushed for more human rights in the world • SALT I & II talks limited nuclear weapons • Carter signed n agreement to give back the Panama Canal Zone

  16. Middle East Mediation • Camp David Accords (1979) • Historic peace agreement between Egypt and Israel • Carter mediated it and it was considered his only good thing

  17. Iranian Hostage Crisis • 1979 Carter allows the former Shah of Iran to come to the U.S. for medical help • Iranians were angry and took over the U.S. embassy

  18. Iranian Hostage Crisis

  19. Iran wanted the Shah for trial and Carter refused to turn him over • 1980 Carter initiated a military rescue but it failed • Hostage crisis greatly hurt his reelection effort

  20. Election of 1980 • Ronald Reagan (R) destroyed Carter (D) • Carter said the nation was facing a “Crisis of Confidence” and called for the nation to changes its attitude but that failed • Reagan was considered the Great Communicator

  21. Reaganomics • Supply- Side Economics- reduced the size of the govt. and relaxed regulation on businesses and gave them more aid • Economic Recovery Tax Act of 1981- major revision in the tax plan that significantly lowered taxes • Reagan’s plan led to a huge national debt

  22. Reagan reduced spending on domestic programs but greatly increased military spending • Summer 1981 Air Traffic Controllers went on strike and he fired them all • Reagan greatly weakened the power of the fed. govt. and deregulated industries

  23. Election of 1984 • Reagan crushed Mondale (D) and his running mate Geraldine Ferraro (1st female to run for office) • Severe recession of 1982 didn’t hurt his election effort and the stock market boomed • National debt tripled during his presidency

  24. American industries found it difficult to compete and many closed or went overseas • Michael Milken was a corporate raider who was convicted of insider trading • Oct. 1987 stock lost 23% of its value

  25. Culture of the 1980s • Rise of yuppies and wealth was extremely important • Many television shows such as Dynasty and Dallas portrayed the wealth • America was becoming a two tiered society • Divorce was on the rise and AIDS was an issue

  26. Reagan’s Foreign Policy • Reagan called the Soviet Union the ‘Evil Empire” and created a Strategic Defense Initiative • Reagan sent troops to Lebanon, Grenada and intervened in Nicaragua • Iran Contra Affair – secret/illegal arms deal that tarnished his presidency

  27. Collapse of Communism • Mikhail Gorbachev won election of the USSR in 1985 • Glasnost and Perestroika were drastic programs that opened up Russia but also sped up its collapse • Berlin Wall fell in November 1989 and USSR by 1991

  28. Fall of the Berlin Wall

  29. Conclusion • Supply Side Economics helped the economy but led to debt. • Berlin Wall collapsing is considered the end of the Cold War • Country moved towards conservatism in the 1980s • Energy crisis hurt the economy in the mid 1970s

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