Presidencies of Carter & Reagan

1976 Presidential Election

  • Ford's support decreased due to:

    • Economic problems.

    • Nixon's pardon, which angered Americans.

  • Democrat Jimmy Carter defeated Ford.

Jimmy Carter's Presidency

  • Carter aimed to be relatable to Americans by holding fireside chats.

  • He did not cater to Congress, refusing to play the insider game.

  • Both Democrats and Republicans voted against his budget proposals, tax reforms, and welfare programs.

Energy Crisis

  • Carter considered the energy crisis the country's biggest issue.

  • He aimed to reduce US reliance on imported oil.

  • He urged Americans to use less oil and gas.

  • November 1978: National Energy Act passed.

    • Placed a tax on fuel-inefficient automobiles.

    • Extended tax credits for alternative energy development.

Economic Issues

  • Summer 1979: OPEC created an oil shortage, increasing prices.

  • Carter’s popularity declined, leading to his defeat in the 1980 presidential election against Ronald Reagan.

Foreign Policy

  • Carter rejected realpolitik, which is negotiating with powerful countries regardless of their actions.

  • He advocated for a foreign policy committed to human rights.

  • He believed the US should promote human rights and freedoms globally.

  • Carter took actions against countries friendly to the US that did not treat their citizens humanely.

    • Cut off military aid to Argentina & Brazil because their governments had imprisoned & tortured their own citizens.

  • The Bureau of Human Rights in the State Department was established.

Relations with USSR

  • Détente ended, and tensions between the US and USSR increased.

  • Carter disapproved of the Soviet government's treatment of its citizens who opposed its policies.

  • The US boycotted the 1980 Olympics held in Moscow.

Camp David Accords

  • 1948: Conflict began between Israel and surrounding Arab countries.

  • Carter facilitated peace between Israel and Egypt in 1978.

  • He invited the Egyptian President & Israeli Prime Minister to Camp David.

  • September 17: Camp David Accords were signed.

    • Israel's first peace treaty with an Arab country.

    • Israel agreed to withdraw troops from the Sinai Peninsula.

    • Egypt agreed to recognize Israel’s right to exist.

Iran Hostage Crisis

  • January 1979: Revolution began in Iran, and Shah Pahlavi fled to Egypt.

  • February: Former Iranian leader Khomeini returned after 14 years in exile.

  • Khomeini established laws based on the Qur’an.

  • October: The US allowed the Shah to enter the country for cancer treatment.

  • November: Armed Iranian students seized the US embassy in Tehran and took Americans hostage.

  • The students, supported by Khomeini, demanded the US send the Shah to Iran in exchange for the hostages.

  • Carter refused.

  • Negotiations lasted over a year.

  • The US placed sanctions on Iran and cut diplomatic ties.

  • April 1980: Carter approved a rescue mission, which was aborted due to a desert sandstorm that caused a helicopter crash.

  • July 27: The Shah died of cancer in Egypt.

  • November: New negotiations began for the release of the hostages.

  • January 20, 1981: The hostages were released after Reagan was sworn in as president.

1980 Election

  • The Iran Hostage Crisis and economic problems hurt Carter’s reelection chances.

  • Reagan was a conservative Republican and former governor of California.

  • Reagan served 2 terms.

Reagan's Policies

  • Reagan promised Americans a better future.

  • He believed the federal government had too much power and taxes were too high.

  • He wanted to cut taxes and increase military funding.

  • He promoted values and morality.

  • Congress passed the largest tax cut since the New Deal.

Reagonomics

  • Trickle-Down Theory: Income from tax cuts for the wealthy would eventually benefit poorer Americans.

  • The wealthy who benefited would spend and invest more, improving the economy and creating new jobs.

  • The economy stabilized and grew following the implementation of Reagonomics.

Military Spending

  • Reagan believed the US military needed to be strong against the Soviet threat.

  • He called the USSR an “evil empire.”

  • “Star Wars”: space-based missile defense system called the Strategic Defense Initiative (SDI).

Foreign Policy under Reagan

  • Promised American support to “freedom fighters” who opposed communism globally.

  • The CIA provided training to the government of El Salvador.

  • US marines were sent to Grenada to end the communist threat and establish a US-friendly government.

Relations with USSR under Reagan

  • 1985: Gorbachev became the new leader of the USSR

  • Implemented policies of glasnost & perestroika

  • Glasnost: openness and willingness to allow western ideas & goods into the USSR.

  • Also allowed open criticism of the Soviet government & took steps toward freedom of the press.

  • Perestroika: outline of restructuring Soviet society.

  • Less government control of the economy.

  • Introduction of private enterprise.

  • Steps towards a democratic government

Intermediate-Range Nuclear Forces (INF) Treaty

  • December 1987: Gorbachev & Reagan signed the Intermediate-Range Nuclear Forces (INF) Treaty.

  • Eliminated 2 classes of nuclear weapons.

  • Allowed each country on-site inspections of military installations.

End of the Cold War

  • 1988: Gorbachev reduced the number of Soviet troops in East Germany & other satellite states.

  • Allowed non-communist parties to organize.

  • Encouraged satellite states to move towards democracy.

  • Reagan challenged Gorbachev to take action by saying, “Mr. Gorbachev, tear down this wall!”

  • The Berlin Wall fell months after Reagan’s 2nd term ended.

  • The Cold War ended in 1991.