Ch 30 & 31–The Overextended
Society 1974-80
The Conservative Ascendancy&
The New Millennium 19802015
 How
Essential Questions:
did Ford confront economic
problems and handle foreign policy
of the 1970’s?
 What was significant about Carter’s
election in 1976?
 What was Carter’s approach to
solving economic problems?
 What was Carter’s foreign policy?
 What were Carter’s achievements
and failures in foreign policy
matters?
**Causes of Stagflation

Between 1967-1973 the US faced high
unemployment and high inflation
(Stagflation)
High Inflation was caused by LBJ funding
the war and the Great Society through
deficit spending
 Increased International Competition in
trade Ex. Japan & West Germany
 Floods of new workers (Domestic Baby
Boomers and Foreign)
 Falling productivity/US Complacency
 Heavy dependence of foreign oil (OPEC)
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**OPEC and War
During the 1960’s the Organization of
Petroleum Exporting Countries (OPEC)
raised the price of oil
 The Six Days War in 1967 impacted prices
 The 1973 Yom Kippur War between Israel
and Egypt and Syria rose prices
 The US sent massive military aid to Israel,
Arab OPEC nations cut oil sales to the US
(Oil Embargo) By 1974 price increased 4x
Major gas lines and shortages in the US
early, mid 1970’s
 ’74,’75 worst econ. Downturn since the
GD

**Rough Road for Ford
 Ford
gave Nixon a full pardon for
Watergate ( Most Controversial)
 Inflation
rose form 6% in ’73 to 10%
in ’74. (Related to the Oil Embargo)
 Ford started the “WIN” campaign,
(Whip Inflation Now) It failed.
 Ford urged Americans to cut back on
use of oil and gas
 Ford cut gov. spending, interests
rates went up triggering the worst
recession in 40 years (Stagflation)
**Carter in the White House

Former peanut farmer, born again
Christian and Gov. of Georgia
Promised he would never lie to the
American people (DC Outsider)
 In the Election of 1976 Carter and Ford
squared off over energy, inflation, and
unemployment

Carter won by a close margin
 He talked to the American people through
FDR like “fire-side” chats by radio and TV
 He granted draft amnesty for those who
fled to Canada during the Vietnam War

Carter’s Domestic Agenda
Carter urged Americans to cut back their
consumption of oil and gas
 The National Energy Act – taxed gas
guzzling cars, removed price controls on
oil and gas produced in the US, and gave
tax credits for development of alternative
energy.
 In 1979 inflation hit 11.3%, 14% by ’80.
 Carter gave his now famous “malaise
speech” in which he complained of a
“crisis of spirit” in Americans. It looked
like he gave up. ( Reagan in 1980)
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Blue Collar Blues
In the 1970’s the US
economy changed
Less manufacturing
jobs, more jobs in
communication,
transportation, and
retail.

Overseas competition
hurt the US. (EX .
West Germany,
Japan, Korea.
 Iron, Steel, clothing
were hit with cutbacks, lay-offs and
plant closings
*Human Rights Foreign Policy
Carter felt the US should promote human
rights around the globe, such as freedoms
and liberties listed in the Dec. of
Independence and Bill of Rights.
 The US gave control of the Panama Canal
back to Panama as of 12/31/99.
 The feeling of Détente with the USSR
ended due Carter’s protest on civil rights
issues.
 SALT II talks were delayed, not ratified
by the Senate, and the USSR invaded
Afghanistan (1979)

**Triumph in the Middle East
 The
Camp David Accords – Carter
invited the leaders of Egypt and
Israel to Camp David (Summer of
’78) Triumph for Pres. Carter
 Israel agreed to withdraw from
the Sinai Peninsula,Egypt
recognized Israel’s right to exist
 Carter was the peacemaker
(Carter Doctrine – Persian Gulf)
**The Iran Hostage Crisis
Jan. 1979 Ayatollah Khomeini led islamic
militants in overthrowing the Shah or
King of Iran. ( They wanted a strict
religious state or theocracy)
 Nov. 4th 1979 armed students stormed
the US Embassy and captured 52

hostages because we (US) let the Shah
into the US for cancer treatment
 Diplomatic, economic, and military action
failed

444 days later the hostages were
released just two hours after Reagan was
Miracle at Lake Placid ‘80
https://www.youtube.com
/watch?v=qYscemhnf88
The Conservative Tide
Goals of the Conservative
Movement
• Shrink the size of the Federal
Government and reduce spending
• Promote family values and
patriotic ideas
• Stimulate business by reducing
government regulations and
lowering taxes
• Strengthen the national defense
Ronald Reagan
•Pres. Screen Actors Guild/
Friendly Witness (HUAC)
• Elected CA Governor 1966
•Election of 1980 elected
Pres
•Attempted Assassination
1981
•Re-Elected in 1984
Essential Questions
• What was Reaganomics?
• How did President Reagan
feel about big government?
• What was President Reagan’s
role in helping to end the Cold
War with the USSR?
Conservative Policies under
Reagan and Bush
**Reaganomics Takes Over
• Reagan wanted to reduce the size and
influence of the Federal Government
• Deep Cuts in Social Programs – Urban
Mass Transit, Food Stamps, welfare
benefits, job-training, Medicaid, school
lunches and student loans.
• Supply-side economics – Tax cuts by 25
%, money saved would be reinvested to
improve business and productivity,
lowering price.
• Increased Defense Spending – MX Missile,
B-1 Bomber, and SDI (Strategic Defense
Initiative)
*Recession, Recovery, & The DEBT
• Severe Recession – July 1981- Nov.
1982
• Tax Cuts and the 1983 Consumer
Spending Spree sparked the
economy
• Stocks surged, unemployment
declined, and GNP went up 10%.
• Stocks crash 1987 then rebounded
• Federal Spending still exceeded
Federal revenue due to the tax cuts.
By 1984 the National Debt almost
doubled. ($ for National Defense)
Election of 1984
• Reagan (R) vs. Walter Mondale
(D) VP under Carter
• Landslide for Reagan
• Geraldine Ferraro of NY
Mondale’s VP candidate was the
first women on a major party’s
Presidential ticket.
Foreign Policy and ending the
Cold War
**In 1981 Reagan had referred to the
USSR as “an Evil Empire”
New Leadership under Mikhail
Gorbachev offered opportunity ‘84
• INF Treaty –Intermediate-Range
Nuclear Forces Treaty) –’87
• Eliminated two classes of weapon
and allowed on site inspections
**Iran-Contra Scandal
• In 1985 seven Americans were taken
hostage in Lebanon by Pro- Iranian
group
• President Reagan approved the sale
of arms to Iran in exchange for the
hostages release
• National Security Council Aid Colonel
Oliver North had diverted millions in
profits from the arms sale to the
Anti- communist Contras fighting in
Nicaragua
•Oliver North –
American Dad to
explain the Iran
Contra Scandal
• https://www.youtube.com/watch?v=wbLD
2JyFAlE
Election of 1988
• George HW Bush (R) vs. Michael
Dukakis ( D)
• Moral Majority, comfortable
economy, no reason to change.
• Bush “Read my Lips: no new Taxes!”
**The Persian Gulf War 90-91
• On Aug. 2nd, 1990 Iraq led by Saddam Hussein
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invaded the oil rich nation of Kuwait
Saddam then looked to Saudi Arabia
Pres. Bush organized an international coalition
and with the support of the UN and Congress
launched Operation Desert Storm
On Jan 16th, 1991 the air war began, in
February the ground war began
Kuwait was liberated, Iraq was weakened
Less than 400 American casualties, but Gulf
War Syndrome?
President Clinton -1992-2000
• Bill Clinton(D) defeated George H.W.
Bush(R) and Ross Perot in the
election of 1992
Health Care Reform
• Clinton appointed Hillary Clinton
to head a health-care reform plan
• Clinton had promised affordable
health care
• The bill never made it
through Congress
**Economic Boom -1990’s
• Spending was cut, taxes
increased for the rich, more
spending for programs to
help children and health
care
• Budget surplus-1st time in
30 years***
• Unemployment fell, stock
market took off
Reforming Welfare-1990’s
• 1996 – Limits were put on
how long people could collect
benefits
• “Block Grants” given out to
states
• People moved from Welfare to
Workfare
• **Strong Economy –Internet
Trade and The Global Economy
• 1994 -NAFTA- North American Free Trade
Agreement – Canada, US, Mexico
• ***What about US jobs being shipped to
Mexico?
Election of 1996
• Clinton (D) vs Dole ( R)
• Strong Economy and
Welfare Reform helped
Clinton
The President Investigated
• The Clinton’s were
investigated for the
White Water land
deal in Arkansas in
1979. ( R) Lead
• Did Illegal $ go
towards Clinton’s
run for Governor?
• Independent
Investigator
Kenneth Starr led
the investigation
*Clinton’s Impeachment – Partisan Politics
• Starr discovered
Clinton had an
improper
relationship with a
White House Intern
• Clinton was
charged with lying
under oath and
obstruction of
justice
• Senate could not
convict him
2001- WTC, Pentagon and PA
crashed planes, 3000 killed
***Motives of Al-Qaeda to
attack the US
•The presence of U.S.
troops in Saudi Arabia
•U.S. support of Israel
•The sanctions against
Iraq.
The War on Terror
• The World Wide
Hunt for Al-Qaeda
and Bin Laden
post 9/11
• The War in
Afghanistan –
Removal of the
Taliban – Oct.
2001-2014
• The War in Iraq –
March 2003 -2011
**Anti-terrorism Measures
• Office of Homeland Security
• *The Patriot Act-(Anti-Terrorism Law)
– Suspects can be held for 7 days without
being charged
– All phones , Internet, and e-mail tapped
– Search warrants valid across state lines
– U.S. Banks can investigate foreign
accounts
– No time restrictions prosecuting
terrorists
– Aviation Security – The responsibility of
President Bush’s 1&2nd Term
• 1.35 trillion in tax cuts
• NCLB (No Child Left Behind)
• Privatize Social Security
• Dealing with 9/11- The War on
Terror
• The War in Iraq/Afghanistan
• Dealing with Iran and North Korea
• Energy Issues/Dependence on
Foreign Oil
• Prescription Drug benefit- Medicare
Issues for the 21st Century
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US role in the Global Economy
***The War on Terror-Bin Laden
The Immigration Debate
Issues in Education (NCLB)
The Communication Revolution
( Internet)
• Curing the Health Care System
– ***Affordable Health Care Act ( Obama Care)
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Breaking the Cycle of Poverty
Tough Choices - Social Security/Gun Control
Women in the Workforce
Environment or Global Warming/Oil/Energy