20 th Century U.S. History Since World War II

1. 20th Century U.S. History Since World War II Unit 8 – Carter Administration (1977-1981)

2. Jimmy Carter • (1977-1981)

3. The Unknown Candidate • Carter played on public distrust of professional politicians • He managed to get elected by portraying himself as an outsider • He had no discernible political philosophy • He brought an end to many White House traditions: • Discontinued the use of “Hail to the Chief” • Ended all state dinners and balls • Sold the presidential yacht • Reduced the limousine service • Reduced the number of staff working in the White House

4. The Unknown Candidate • Over the course of his administration, his outsider status hampered his effectiveness • He was unable to work with Congress • This is even considering that both houses had Democrat majorities • Many of his bills that did pass did not look like the original versions • When Carter took office, the country was stuck in an economic stagnation coupled with massive inflation • Was known as “stagflation”

5. “Stagflation” • This was exacerbated by • A growing national debt • Federal deficit that would continue throughout his administration • Rising inflation • In January 1977, inflation was at 5.22% • By January 1978, it was at 6.84% • By January 1979, 9.28% • By January 1980, it was at 13.91% • U.S. productivity was at an all time low • Growth was only reaching an annual rate of 1% • This is compared to 3.2% during the 1960s

6. “Stagflation” • One of the hardest hit areas was the automotive industry • This was to be coupled by rising gas prices and the Japanese creation of small, energy efficient cars • The northeast “rust belt” was plagued with factories shutting down • Chrysler shut down 13 plants and terminated 31,000 • Carter also asked the Federal Reserve Board to increase interest rates to curb inflation • By December 1980, prime rate hit 21.5% • The federal deficit grew to an all-time high of $66 billion

7. “Stagflation” • Congress did pass two bills in 1977 to boost the economy • Public Works Employment Bill provided $4 billion in funding for public works projects • Estimated to create 300,000 jobs • Economic Stimulus Appropriations Bill • $20 billion in general revenue sharing funds • Humphrey-Hawkins Act (1978) • Called for unemployment of no more than 4% • Growth of production • Inflation rates no higher than 4% • Balance of trade and budget

8. Paul Volcker • Chairman of the Federal Reserve • (1979-1987)

9. Carter’s Energy Policy • During the course of his administration skyrocketing energy prices was a main concern • By 1977, Americans were consuming more energy than every before • Carter warned the country that the energy crisis was “a clear and present danger to our nation” • Energy industry lobbied for increasing the supply • Would include deregulation of the price of natural gas and oil • Instead Carter wanted greater conservation of energy • In 1977, created the U.S. Department of Energy • Purpose was to help the country conserve energy • Due to a severe winter in 1977, there was a shortage of natural gas

10. Carter’s Energy Policy • Another main concern was oil • Between 1973 and 1977, oil went from $6 to $12 a barrel • U.S. dependency on foreign oil when from 35% to 50% • This led to greater inflation and negatively affected economic growth • In April 1977, Carter introduced the National Energy Program • 113 provisions • Included “gas guzzler” taxes • Set up efficiency standards for buildings and appliances • Solar tax credits were given for alternative forms of energy • Required federal facilities to turn down thermostats

11. Carter’s Energy Policy • National Energy Act of 1978 • Very different from the original bill Carter wanted • Stressed deregulation of the oil industry • Did not include Carter’s plan to push conservation through taxation • Designed to encourage conservation of energy • Promoted development of alternative forms of energy • Carter’s personal actions • Placed solar panels on the roof of the White House • Put a wood stove in his living quarters

12. Carter’s Energy Policy • 1979 Oil Crisis • Occurred because of the Iranian Revolution • Iran reduced the amount of oil produced from 6 million barrels a day to 1.5 million • OPEC responded by increasing the price of oil • In April 1979, it was $15.85 a barrel • In April 1980, it was $39.50 a barrel • Gas rationing (“odd-even”) went into effect in many states • Carter responded by deregulating oil production • With the oil crisis, there was a push for alternative sources of energy • One that showed the most promise was nuclear energy • However, many criticized the safety of using such energy

13. Line at a Maryland gas station (June 15, 1979)

14. Three Mile Island • Three Mile Island Accident (March 28, 1979) • Near meltdown of the nuclear reactor in Unit 2 of the Three Mile Island Nuclear Generation Station in Pennsylvania • Radioactive gases, including iodine were released into the atmosphere • Due to large amounts of coolant escaping from the reactor • Mainly due to human error and design flaws • Sparked numerous anti-nuclear power protests throughout the country • Ironically, the movie The China Syndrome had been released 12 days prior to the incident

15. Carter leaving Three Mile Island (April 1, 1979)

16. Environmental Policies • The environment was another main concern for both Carter and the American public • Over the course of his administration, Carter: • Strengthened the EPA • Made clean water and air regulations tougher • Love Canal • Neighborhood in Niagara Falls, NY that had been built upon a chemical waste dump • Investigations into the site began in 1976 with a large rise in miscarriages and birth defects • In 1978, Carter called the site a federal health emergency and called for the federal government to clean up the site

17. Environmental Policies • Valley of Drums • Massive chemical waste dump site near Louisville, KY • First caught media attention in 1966 after the site caught fire • In 1979, Carter ordered the EPA to do an emergency clean up of the site • However, discovered the site was in worse shape than realized • Comprehensive Environmental Response Compensation and Liability Act (1980) • Also known as the Superfund Act • Set up a $1.6 billion fund to help with the cleanup of toxic pollution on so-called Superfund Sites

18. Valley of Drums (c. 1980)

19. Other Domestic Policies • Carter’s other domestic policies included: • Created the Department of Education • Pardoning all men who evaded the Vietnam draft • Refused to approve development of a neutron bomb and a B-1 bomber • Critics argued that Carter was being “too soft” on defensive issues • Carter was slightly more successful with his foreign policy • Focused on humanitarianism and human rights • Wanted to downplay the anticommunist movement • Spoke out publically on behalf of political prisoners • Reduced foreign aid to most dictatorships

20. Carter and Omar Torrijos shaking hands after the signing of the Torrijos-Carter Treaty (September 7, 1977)

21. Carter’s Foreign Policy • Torrijos-Carter Treaty (September 7, 1977) • In 1977, he reworked the old 1903 Panama Canal treaty • Old treaty gave a perpetual lease to the Canal Zone to the U.S. • New treaty was to Panama complete control on December 31, 1999 • It was ratified by April 18, 1979 • Mixed reactions to the treaty • Some conservatives believed the U.S. was negotiating with a hostile government • California Governor Ronald Reagan called it “appeasement” • Sen. S.I. Hayakawa said “It’s ours; we stole it fair and square” • Even a motion to declare it “null and void” but failed

22. Camp David Accords • Carter’s biggest success was the Camp David Accords • He wanted to bring about Middle East peace • Overtures had already been made to Israel by Egyptian president Anwar Sadat • He visited Jerusalem in November 1977 • Sadat was already frustrated with the Geneva track peace process and had been looking towards peace with Israel • Meeting between Carter, Sadat, and Israeli prime minister Menachem Begin at Camp David • Met for 13 days • Brokered an unprecedented peace agreement between Egypt and Israel on March 26, 1979

23. Camp David Accords • Camp David Accords • Israel would return the Sinai peninsula to Egypt • Egypt and Israel would begin negotiations of Palestinian autonomy of the West Bank and Gaza Strip • The Israeli Knesset voted to approve of the Accords • Started the Middle East peace talks • Still two main problems: • Timetable for Israeli withdrawal from the Sinai • Did not occur until 1982 • Future of the West Bank and Gaza Strip • Would not be rectified until the 1990s

24. Sadat, Carter, and Begin at Camp David

25. Relations with China • Carter continued the policy of détente with China • In 1978, he sent his National Security Advisor, Zbigniew Brzezinski, to China • Set down the groundwork for diplomatic and trade agreements between the two countries • Joint Communiqué on the Establishment of Diplomatic Relations (January 1, 1979) • Officially recognized the People’s Republic of China • Taiwan Relations Act (April 10, 1979) • Authorized relations with the Republic of China government on Taiwan • Agreements made prior to 1979 were still valid

26. Deng Xiaoping and Jimmy Carter at the signing ceremony of the Joint Communiqué (January 31, 1979)

27. Relations with the Soviets • Carter hoped to continue the policy of détente with the Soviet Union • On the first day in office, he ordered all nuclear weapons removed from South Korea • Many criticized him for weakening the U.S. defenses in Asia • SALT II • Carter began negotiations with Leonid Brezhnev in 1977 to limit the manufacture of nuclear weapons • Final treaty was signed in Vienna in June 1979 • Reduced the number of delivery systems • Pushed the Soviets to not arm their 3rd generation ICBMs • Was not ratified by the Senate

28. Carter and Brezhnev signing the SALT II treaty (June 18, 1979)

29. Soviet Invasion of Afghanistan • Until 1973, the government of Afghanistan was a monarchy under control of Mohammad Zahir Shah • Set up a two chamber legislature in 1964 to give some semblance of a democracy • Allowed radical groups to rise up in predominance • This included the People’s Democratic Party of Afghanistan (PDPA) • In 1973, Prime Minister Sardar Mohammad Daoud seized control of the government through a military coup • Received support because of the hard economic times the country was going through and corruption of the old regime • However, was unable to bring about the necessary reforms the country needed

30. Soviet Invasion of Afghanistan • On April 27, 1978, the People’s Democratic Party of Afghanistan (PDPA) instigated a coup d’état • A new communist government was set up under Nur Muhammad Taraki, Secretary General of the PDPA • Brought in a series of brutal reforms during its first 18 months • Many were tortured, killed, or exiled • Many Afghani traditions were abolished, including religious traditions • The Soviet Union had signed an assistance treaty with the new Afghani government in December 1978 • A strong resistance movement grew against the PDPA

31. Soviet Invasion of Afghanistan • In the summer of 1979, revolts broke out in eastern Afghanistan • Started a strong counter-insurgency movement • In September 1979, Hafizullah Amin seized control of the PDPA • Plagued by political instability for the next two months • By December, the PDPA was greatly weakened • The Soviets quickly became dissatisfied with the Amin government

32. Soviet Invasion of Afghanistan • On December 24, 1979, Soviet forces landed in Kabul • They overthrew Amin and replaced him with Babrak Karmal • The new government had the support of 120,000 Soviet troops • However, it did not have the support of the majority of the people • Counter-Insurgents • Made up as much as 80% of the countryside • Most Afghanis were against the new Marxist regime • The fought either actively—as mujahideen—or passively

33. U.S. Response to the Invasion • V.P. Mondale responded to the invasion: • “I cannot understand—it just baffles me—why the Soviets these last few years have behaved as they have. Maybe we have made some mistakes with them. Why did they have to build up all these arms? Why did they have to go into Afghanistan? Why can't they relax just a little bit about Eastern Europe? Why do they try every door to see if it is locked?” • U.S. response • Increased U.S. military forces • Embargo on trade of wheat and technology to the Soviets • Convinced the U.S. Olympic Committee to ban the 1980 Olympics in Moscow • Also convinced the Senate not to ratify the SALT II agreement

34. U.S. Response to the Invasion • Operation Cyclone • The CIA began to supply the mujahideen with arms • Done through Pakistani Inter-Services Intelligence • In total, the U.S. spent approximately $20 billion in training and supplies • There was additional training of insurgents in Pakistan • Carter Doctrine (January 1980) • Carter was fearful that the Soviets were going to invade Iran • Stated that any interference with U.S. oil interests in the Persian Gulf would be equivalent of an attack on the U.S. • Referred to the crisis as the “moral equivalent of war”

35. Caravan after an attack by Soviet helicopters

36. Trouble in Iran • Prior to 1979, Iran had been a key ally to the U.S. in the Middle East • Carter even praised the then ruler, Shah Mohammad Reza Pahlavi, as a great and wise leader in the east • Not all Iranians were enamored with the Shah or his ties to the west • Growing Islam revival during this time • Many were resentful of the U.S.’s role in reinstating the Shah back in 1953 • It was a CIA backed coup d’état that ousted a democratically elected Prime Minister to restore the Shah

37. Trouble in Iran • Starting in late 1977, demonstrations against the Shah broke out in Iran • Wanted return to traditional Islamic values and end all ties with the west • Also wanted to get rid of the Shah • Rise of Ayatollah Khomeini • Iranian Shi’ite religious leader and politician • Openly protested the Shah’s westernization of Iran • Was forced into exile in 1964 • During his exile, he continued to speak out against the Shah and made calls for clerical rule

38. Ayatollah Ruhollah Khomeini • (1900-1989)

39. Trouble in Iran • Throughout 1978, the amount of protests escalated • The country was rapidly destabilizing • On September 8, 1978, security forces shot at protesters in Tehran • Anywhere between 88 and several hundred people were killed • In Jaleh Square alone, 64 people were killed including two women • This became known as Black Friday • Another major protest occurred on December 2 • 2 million people protested in Shahyad Square • Demanded removal of the Shah • A week later upwards of 9 million participated in protests • Roughly 10% of the population

40. Black Friday at Jaleh Square (September 8, 1978)

41. Iranian Revolution • On January 16, 1979, the Shah and his wife left Iran • On February 1, Ayatollah Khomeini returned to Tehran • On March 30 and 31, a referendum was held • To decide if the monarchy should be replaced with an “Islam Republic” • 98.2% voted in favor • The U.S. did try to work out a new relationship with the new Iranian government • On October 22, 1979, the U.S. allowed the Shah to come to the U.S. to receive medical treatment • This was against the wishes of Khomeini and the current regime

42. Iran Hostage Crisis • On November 4, 1979, students laid siege to the U.S. embassy in Tehran • Took 52 embassy personnel as hostages • Six managed to escape by going to the Canadian embassy • The demands: • Return the Shah to Iran for trial • Giving the Shah’s wealth to the Iranian people • Admission of guilt and apology for the U.S.’s past actions against Iran • A promise that the U.S. would not ever again interfere in Iranian affairs

43. Iran Hostage Crisis • Executive Order 12170 (November 14, 1979) • Carter froze the assets of the Iranian government in the U.S. • Was approximately $8 billion • Was to be used as a bargaining chip • Carter also terminated Iranian oil imports • Impact on the U.S. • Surge of U.S. patriotism and anti-Iranian feelings • Demonstrations took place throughout the U.S. • Even the culture of the time was affected • Beach Boys’ song “Barbara Ann” was parodied as “Bomb, Bomb Iran” • Popular bumper stickers included Mickey Mouse “giving the finger” to Iran

44. Iran Hostage Crisis • Operation Eagle Claw (April 24, 1980) • Failed U.S. military attempt to free the hostages • First Delta Force mission • Part of it had to do with damage to the helicopters from sand clouds • Mission had to be aborted before it was able to take the hostages • The hostages would remain in Iran for 444 days • Conditions were not terrible for the hostages • Worst was being placed in solitary confinement • Hostages were allowed to write letters, read, and communicate with foreign officials • However, there was the constant fear of trial and execution

45. Iran Hostage Crisis • Carter continued negotiations through the remainder of his administration • In 1980, things started to work out for the U.S. • The Shah died in Egypt on July 27 • Iraq invaded Iran in September • Algiers Accords (January 19, 1981) • U.S. accepted all three of Iran’s demands with the exception of the apology • U.S. would unfreeze $7.9 billion in Iranian assets • One key point that was not listed was that the hostages would not be released until Carter was out of office

46. Protester in Washington D.C. (November 9, 1979)

47. U.S. and Latin America • In 1979, the U.S. refused aid to Nicaraguan government against Sandinistas • Nicaragua was ruled by dictator Anatasio Somoza Debayle • The Sandinistas were a socialist party • This was a change in U.S. policy • The Sandinistas took control with the Nicaraguan Revolution of 1979 • Carter also assisted El Salvador against Marxist rebels • However, that regime fell on October 15, 1979 • This began a civil war that would plague the country for 12 years

48. Election of 1980

49. 1980 Elections • Turmoil of the 1960s and economic problems of 1970s made a conservative turn inevitable • Watergate bought Democrats more time • Carter’s troubles • High inflation and high unemployment • Hostage crisis and Soviet invasion of Afghanistan made Carter look naïve and helpless • Democratic National Convention • Battle between Carter and Edward Kennedy • Some even opted for Muskie to be the nominee to break the stalemate • In the end, Carter did win the nomination

50. Election of 1980 • Ronald Reagan easily won the Republican party nomination • He was the attractive candidate Republicans needed to assure decisive victory • Strong conservative • John Bayard Anderson ran as an independent • He was technically a Republican but lost the nomination • Pushed for more moderate Republicanism • Carter’s troubles • High inflation and high unemployment • Hostage crisis and Soviet invasion of Afghanistan made Carter look naïve and helpless