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.