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Chapter 19: Politics and Economics Lesson 3: Ford and Carter — Study Guide

Gerald Ford’s Presidency (1974–1977)

Background:

  • Ford became president after Nixon resigned (Watergate scandal).

  • First president not elected as president or vice president.

Pardon of Nixon:

  • Ford pardoned Nixon for any crimes related to Watergate.

  • This move was very controversial — people saw it as unfair.

Economic Problems:

  • Stagflation: a mix of stagnant economy and high inflation.

  • WIN Program (“Whip Inflation Now”) — encouraged Americans to save money and reduce spending.

  • WIN didn’t really work — inflation and unemployment stayed high.

Foreign Policy:

  • Helsinki Accords (1975):

    • An agreement between the U.S., Soviet Union, and Europe to respect human rights.

  • Ford continued Nixon’s policy of détente (easing Cold War tensions).

Jimmy Carter’s Presidency (1977–1981)

Background:

  • Former governor of Georgia; seen as an “outsider” who would clean up Washington.

  • Focused on honesty and human rights.

Economic Challenges:

  • Inflation and unemployment worsened.

  • Energy crisis:

    • Oil prices shot up (OPEC oil embargo effects still hurting).

    • Carter encouraged energy conservation and developed a National Energy Plan.

  • “Malaise speech” — Carter’s speech suggesting Americans had a crisis of confidence (hurt his popularity).

Foreign Policy:

  • Human Rights Focus:

    • Cut ties with countries that abused human rights.

  • Panama Canal Treaties (1978):

    • Agreed to turn the Panama Canal over to Panama by 1999.

  • Camp David Accords (1978):

    • Peace agreement between Egypt and Israel (huge foreign policy success).

  • Iran Hostage Crisis (1979–1981):

    • 52 Americans were taken hostage at the U.S. Embassy in Iran.

    • Hostages held for 444 days; they were not released until after Carter left office.

Key Terms to Know:

  • Stagflation — high inflation + high unemployment + slow economic growth.

  • Détente — easing tensions between Cold War rivals.

  • Helsinki Accords — agreement on respecting human rights.

  • Energy Crisis — shortage and high cost of oil and gas.

  • Camp David Accords — peace deal between Egypt and Israel.

  • Iran Hostage Crisis — diplomatic standoff where U.S. embassy workers were taken hostage in Iran.

Study Tips:

  • Understand why Ford pardoned Nixon and why people were mad.

  • Know what “stagflation” is and why it hurt Ford and Carter.

  • Be able to explain Carter’s successes (Camp David Accords) and failures (Iran Hostage Crisis).

  • Remember how the energy crisis shaped Carter’s domestic policies.