1 / 18

The 1970s

The 1970s. Economic Crisis. by mid-1960s, US spending large amts of money on Vietnam War & Great Society Programs To pay for both, LBJ increased deficit spending, but did not raise taxes Result: inflation. Economic Crisis (cont.). 1973: Yom Kipper War began (Israel vs. Arab)

oberon
Télécharger la présentation

The 1970s

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The 1970s

  2. Economic Crisis by mid-1960s, US spending large amts of money on Vietnam War & Great Society Programs To pay for both, LBJ increased deficit spending, but did not raise taxes Result: inflation

  3. Economic Crisis (cont.) • 1973: • Yom Kipper War began (Israel vs. Arab) • OPEC announced oil embargo (i.e. ban) to countries that supported Israel (e.g. USA) • Result: price of oil rises (200%) • Effect: US economy enters a recession

  4. Economic Crisis (cont.) By 1970, US manufacturing plants no longer competitive Reason: Japan & Germany had new, more efficient plants

  5. Economic Crisis (cont.) Effect: cheaper foreign products led to US importing more than it exported Result: w/ US plants closing, unemployment went up

  6. Nixon & the Economy • Views stopping inflation as priority #1 • Plan • 1) cut spending and raise taxes • 2) tell Federal Reserve to raise interest rates • 3) imposed a 90-day freeze on all wages & prices • EPIC FAIL!

  7. Ford & the Economy • Implements plan called WIN (“Whip Inflation Now”) • Called for: • 1) Reduced use of oil & natural gas • 2) Programs to conserve energy • 3) Cut gov’t spending + balance the Fed. budget • 4) Tell Fed Reserve to raise interest rates • 5) keep taxes low • EPIC FAIL!

  8. Stagflation Definition: combination of inflation + recession w/ high unemployment Few thought inflation + recession could happen at same time (hadn’t happened before) Result: no one knew how to fix economy Bottom line: Economy sucked!

  9. Jimmy Carter won election of 1976 • Had Little political experience (Gov. of GA) • Had image as a moral & upstanding individual (“Washington Outsider”) • Promised to: • 1) restore honesty to the Fed. gov’t • 2) pass new programs for energy development, tax & welfare reform, and national health care

  10. Carter & the Economy • Called for: • 1) Increased gov’t spending • 2) cut taxes • 3) reduce the money supply • 4) have Fed Reserve raise interest rates • EPIC FAIL!

  11. Carter & the Issue of Oil • Carter declared “war” on US dependence on foreign oil • Proposed a nat’l energy plan that encouraged use of: • Coal vs. oil • Renewable energy sources (e.g. solar) • Created Dept. of Energy • Deregulated domestic oil industry

  12. Carter’s Domestic Policy = Failure- why? • 1) Poor PR: “Malaise” speech • Left impression that economic problems were the American people’s fault, not his • 2) Lack of political experience • Made little effort to work w/ Congress • Result: Congress blocked most of Carter’s energy proposals

  13. Carter’s Domestic Policy a Failure- why? (cont.) • 3) failure to demonstrate strong leadership • Did not set clear goals for the country (“middle of the road”) • Result: public support dropped (lower than Nixon during Watergate) • Oh, that’s REALLY bad…

  14. Carter’s Foreign Policy • 2 Major goals: • Restore a positive US image in the World • Ensure human rights • Successes • 1) Improved relations w/ LA by signing treaty w/ Panama guaranteeing return of Canal to Panama in 1999

  15. Carter’s Foreign Policy: Successes • 2) Brokered Camp David Accords • Agreement b/t Israel & Egypt • Israel agreed to a complete withdrawal of Israeli forces from Sinai Peninsula • Egypt recognized Israel as legitimate country

  16. Carter’s Foreign Policy: Failures 1) Condemned USSR for human rights violations 2) Once USSR invaded Afghanistan (1979), imposed grain embargo & boycotted 1980 Olympics in Moscow Result: Détente w/ USSR began to fail

  17. Carter’s Foreign Policy: Failures (cont.) • 3) Iran Hostage Crisis • 11/1979: US Embassy overrun & 52 Americans taken hostage • Diplomatic efforts/negotiations failed to free the hostages

  18. Iran Hostage Crisis (cont.) • Carter authorizes Special Ops rescue attempt that proved a disaster (helicopters crashed & 8 killed) • Hostages released after 444 days (only after Carter left office)

More Related