Jimmy Carter

Domestic Politics under the Carter Presidency

Carter wanted to introduce a new style of presidency
Broke with tradition after his inauguration by walking with his wife along Pennsylvania to the White House
He had won the election partly because he was an outsider from a Southern state
His inexperience in dealing with a Democrat dominated Congress created major problems
He lacked a clear policy and this, and his lack of optimism, added to his problems in the future
He saw the present as one big emergency and the future as marked by a sharp diminution of promise of American life

Economic Policy

He used ‘demand side’ policies to stimulate the economy
These had been the basis of US macroeconomic policy since WW2 but high fuel prices and foreign competition caused the US recession from the early 1970s
This caused inflation and unemployment (stagflation)
Stimulating demand with increased consumer spending served to increase inflation and the purchase of imports such as cars
In the first years of the new Presidency unemployment dropped from 8% to 7%
Inflation kept rising though – 10% by end 1978 and 13% by 1980
Interest rates were 20%
Inflation rate boosted in 1979 because of the Iranian revolution and fall of the Shah
Also led to OPEC doubling the price of oil
23^rd October 1979 Carter given power by Congress to ration petrol
There was a nationwide reaction against a big-spending government
1978 a referendum in California accepted proposition 13 to cut taxes
Other states followed

Changes in Government

Carter had some successes
Increased the number of people from ethnic minorities in government
Highest profile appointment was that of Andrew Young as US ambassador to the UN
Carter created the new Energy Department
1979 divided the Department of Health, Education and Welfare (HEW) into the separate departments of Education, Health and Human Services

1980 Elections

Carter became first one-term President since WW2
Lost 1980 election for number of reasons:
Foreign affairs – US embassy staff in Iran taken hostage (not released till Jan 19810. He took responsibility for the failed military mission to free them
1979 USSR invaded Afghanistan
Decision to boycott 1980 Moscow Olympics only added to his problems
Economy in recession – high interest rates, inflation and unemployment

Reagan

Carter’s opponent in the election
Conservative Republican
Former governor of California
Supported new approach to the economy – ‘supply side’ economics
Supported by fundamentalist religious groups - had grown in influence during 1970s
Most influential – the ‘moral majority’ pressure group run by Rev. Jerry Falwell
Backed also by women’s groups opposed to feminism
Led by Phyllis Schafly and the National Right to Life Committee
Latter had 11 million members by 1980
The election proved to be the biggest rejection of an incumbent president since Hoover’s defeat in 1932
Republicans won control of the Senate for first time since 1952
Gained 33 seats in the House
Main cause of this Republican landslide was the discontent with unemployment, inflation and the poor performance of the economy
Also the voters wanted a stronger foreign policy and decisive leadership
This election heralded a fundamental change in US domestic history
The two terms of Reagan’s presidency became known as ‘The Reagan Revolution’

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