High unemployment and raised prices stagfaltion nixon and ford test pdf
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Stagflation and the oil crisis
The presidency of Jimmy Carter began at noon on January 20, , when Jimmy Carter was inaugurated as the 39th President of the United States, and ended on January 20, Carter, a Democrat from Georgia, took office after defeating incumbent Republican President Gerald Ford in the presidential election.
His presidency ended following his defeat in the presidential election by Republican Ronald Reagan. Carter took office during a period of " stagflation ," as the economy experienced a combination of high inflation and slow economic growth.
His budgetary policies centered on taming inflation by reducing deficits and government spending. Responding to energy concerns that had persisted through much of the s, his administration enacted a national energy policy designed to promote energy conservation and the development of alternative resources.
Despite Carter's policies, the country was beset by an energy crisis in , which was followed by a recession in Carter sought reforms to the country's welfare, health care, and tax systems, but was largely unsuccessful, partly due to poor relations with Congress. Taking office in the midst of the Cold War , Carter reoriented U. He continued the conciliatory Cold War policies of his predecessors, normalizing relations with China and pursuing further Strategic Arms Limitation Talks with the Soviet Union.
After the Soviet invasion of Afghanistan , he discarded his conciliatory policies towards the Soviet Union and began a period of military build-up and diplomatic pressure such as pulling out of the Moscow Olympics.
The final fifteen months of Carter's presidential tenure were marked by several additional major crises, including the Iran hostage crisis and economic malaise. Ted Kennedy , a prominent liberal Democrat who protested Carter's opposition to a national health insurance system, challenged Carter in the Democratic primaries.
Boosted by public support for his policies in late and early , Carter rallied to defeat Kennedy and win re-nomination. In the general election, Carter faced Reagan, a conservative former governor of California.
Reagan won a decisive victory. In polls of historians and political scientists , Carter is usually ranked as a below-average president, but is seen more positively through his post-presidency humanitarian activities across the globe.
Carter was elected as the Governor of Georgia in , and during his four years in office he earned a reputation as a progressive , racially moderate Southern governor.
Observing George McGovern 's success in the Democratic primaries , Carter came to believe that he could win the Democratic presidential nomination by running as an outsider unconnected to establishment politicians in Washington, D. Harris , Terry Sanford , Henry M. Jackson , Lloyd Bentsen , and George Wallace all sought the nomination, and many of these candidates were better known than Carter. Carter sought to appeal to various groups in the party; his advocacy for cutting defense spending and reining in the CIA appealed to liberals, while his emphasis on eliminating government waste appealed to conservatives.
The selection of Mondale was well received by many liberal Democrats, many of whom had been skeptical of Carter. The Republicans experienced a contested convention that ultimately nominated incumbent President Gerald Ford , who had succeeded to the presidency in after the resignation of Richard Nixon due to the latter's involvement in the Watergate scandal. Above all, Carter attacked the political system, defining himself as an "outsider" who would reform Washington in the post-Watergate era.
Polls taken just before election day showed a very close race. Carter won the election with The presidential election represents the lone Democratic presidential election victory between the elections of and Carter fared particularly well in the Northeast and the South, while Ford swept the West and won much of the Midwest.
In the concurrent congressional elections , Democrats increased their majorities in both the House and Senate. In his inaugural address, Carter said, "We have learned that more is not necessarily better, that even our great nation has its recognized limits, and that we can neither answer all questions nor solve all problems.
His first steps in the White House went further in this direction: Carter cut the size of the member White House staff by one-third and reduced the perks for the president and cabinet members.
Though Carter had campaigned against Washington insiders, many of his top appointees had served in previous presidential administrations. Michael Blumenthal had been high-ranking officials in the Kennedy and Johnson administrations.
Schlesinger as a presidential assistant on energy issues, federal judge Griffin Bell as Attorney General, and Patricia Roberts Harris , the first African-American woman to serve in the cabinet,  as Secretary of Housing and Urban Development.
Carter appointed several close associates from Georgia to staff the Executive Office of the President. Carter decided not to have a chief of staff, instead implementing a system in which cabinet members would have more direct access to the president. Eizenstat as head of the Domestic Policy Staff. Brzezinski emerged as one of Carter's closest advisers, and Carter made use of both the National Security Council and Vance's State Department in developing and implementing foreign policy. Vice President Mondale served as a key adviser on both foreign and domestic issues.
She traveled abroad to negotiate foreign policy, and some polling found that she was tied with Mother Teresa as the most admired woman in the world. Jordan was selected as the president's first chief of staff, while Alonzo L. Federal Reserve Chairman G. Among presidents who served at least one full term, Carter is the only one who never made an appointment to the Supreme Court. Carter was the first president to make demographic diversity a key priority in the selection of judicial nominees.
Instead he traced his ideological background to the Progressive Era. He was thus much more conservative than the dominant liberal wing of the party could accept. Carter successfully campaigned as a Washington "outsider" critical of both President Gerald Ford and the Democratic Congress; as president, he continued this theme.
This refusal to play by the rules of Washington contributed to the Carter administration's difficult relationship with Congress. After the election, the President demanded the power to reorganize the executive branch, alienating powerful Democrats like Speaker Tip O'Neill and Jack Brooks. During the Nixon administration , Congress had passed a series of reforms that removed power from the president, and most members of Congress were unwilling to restore that power even with a Democrat now in office.
A few months after his term started, Carter issued a "hit list" of 19 projects that he claimed were " pork barrel " spending.
He said that he would veto any legislation that contained projects on this list. Carter chose to sign the bill, but his criticism of the alleged "pork barrel" projects cost him support in Congress.
The limited spending involved in the package reflected Carter's fiscal conservatism, as he was more concerned with avoiding inflation and balancing the budget than addressing unemployment.
Carter's resistance to higher federal spending drew attacks from many members of his own party, who wanted to lower the unemployment rate through federal public works projects. Carter signed several measures designed to address unemployment in , including an extension of the Comprehensive Employment and Training Act , but he continued to focus primarily on reducing deficits and inflation.
Upon taking office, Carter asked James Schlesinger to develop a plan to address the energy crisis. His chief goals were to limit the growth of energy demand to an increase of two percent a year, cut oil imports in half, and establish a new strategic petroleum reserve containing a six-month supply. Schlesinger presented an energy plan that contained provisions, the most important of which were taxes on domestic oil production and gasoline consumption.
The plan also provided for tax credits for energy conservation, taxes on automobiles with low fuel efficiency , and mandates to convert from oil or natural gas to coal power.
Many of Carter's original proposals were not included in the legislation, but the act deregulated natural gas and encouraged energy conservation and the development of renewable energy through tax credits. Another energy shortage hit the United States in , forcing millions of frustrated motorists into long waits at gasoline stations. In response, Carter asked Congress to deregulate the price of domestic oil. At the time, domestic oil prices were not set by the world market, but rather by the complex price controls of the Energy Policy and Conservation Act EPCA.
Oil companies strongly favored the deregulation of prices, since it would increase their profits, but some members of Congress worried that deregulation would contribute to inflation. In late April and early May the Gallup poll found only 14 percent of the public believed that America was in an actual energy shortage. The other 77 percent believed that this was brought on by oil companies just to make a profit.
Carter used a provision of EPCA to phase in oil controls, but Congress balked at implementing the proposed tax. Jimmy Carter . In July , as the energy crisis continued, Carter met with a series of business, government, labor, academic, and religious leaders in an effort to overhaul his administration's policies.
On July 15, Carter delivered a nationally televised speech in which he called for long-term limits on oil imports and the development of synthetic fuels.
But he also stated, "all the legislation in the world can't fix what's wrong with America. What is lacking is confidence and a sense of community. The initial reaction to Carter's speech was generally positive, but Carter erred by forcing out several cabinet members, including Secretary of Energy Schlesinger, later in July.
The Energy Security Act established the Synthetic Fuels Corporation , which was charged with developing alternative energy sources. Carter took office during a period of " stagflation ", as the economy experienced both high inflation and low economic growth. He appointed Alfred E. The energy crisis ended a period of growth; both inflation and interest rates rose, while economic growth, job creation, and consumer confidence declined sharply.
William Miller , had already contributed to somewhat higher inflation,  rising from 5. The sudden doubling of crude oil prices by OPEC  forced inflation to double-digit levels, averaging During the presidential campaign, Carter proposed a health care reform plan that included key features of a bipartisan bill, sponsored by Senator Ted Kennedy, that provided for the establishment of a universal national health insurance NHI system.
The establishment of an NHI plan was the top priority of organized labor and many liberal Democrats, but Carter had concerns about cost, as well as the inflationary impact, of such a system. He delayed consideration of health care through , and ultimately decided that he would not support Kennedy's proposal to establish an NHI system that covered all Americans.
Kennedy met repeatedly with Carter and White House staffers in an attempt to forge a compromise health care plan, but negotiations broke down in July Though Kennedy and Carter had previously been on good terms, differences over health insurance led to an open break between the two Democratic leaders. In June , Carter proposed more limited health insurance reform—an employer mandate to provide private catastrophic health insurance.
The plan would also extend Medicaid to the very poor without dependent minor children, and would add catastrophic coverage to Medicare. Long led a bipartisan conservative majority of the Senate Finance Committee to support an employer mandate to provide catastrophic coverage and the addition of catastrophic coverage to Medicare.
Carter sought a comprehensive overhaul of welfare programs in order to provide more cost-effective aid; Congress rejected almost all of his proposals. In early , Secretary Califano presented Carter with several options for welfare reform, all of which Carter rejected because they increased government spending.
In August , Carter proposed a major jobs program for welfare recipients capable of working and a "decent income" to those who were incapable of working. To the disappointment of the Congressional Black Caucus CBC and organized labor, the final act did not include a provision authorizing the federal government to act as an employer of last resort in order to provide for full employment.
Carter also sought tax reform in order to create a simpler, more progressive taxation system. He proposed taxing capital gains as ordinary income, eliminating tax shelters, limiting itemized tax deductions, and increasing the standard deduction.
Carter supported many of the goals of the environmentalist movement, and appointed prominent environmentalists to high positions. As president his rhetoric strongly supported environmentalism, with a certain softness regarding his acceptance of nuclear energy — he had been trained in nuclear energy with atomic submarines in the Navy.
The Alaska National Interest Lands Conservation Act doubled the amount of public land set aside for national parks and wildlife refuges. Early in his term, Carter worked to fulfill a campaign promise to teachers' unions to create a cabinet-level Department of Education.
Presidency of Jimmy Carter
In the s, the Organization of Petroleum Exporting Countries OPEC A cooperative formed in by oil-exporting nations whose members seek ways to maximize profits related to oil exports. OPEC demonstrated its power in the s with a series of boycotts against the West that led to a severe energy crisis and increased price for oil. Oil-producing nations such as Venezuela, Iran, Iraq, Kuwait, and Saudi Arabia believed that the tremendous postwar demand for oil did not match its price, which had remained fairly constant in real dollars for nearly a century. The only way to increase the price of oil, OPEC founders recognized, was to reverse the present power structure and make nations that imported oil dependent on the nations that produced oil, rather than the other way around. The challenge was to convince all oil-exporting nations, especially those of the predominantly Arabic Middle East, to restrict production simultaneously.
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