Terminale OIB History Jimmy Carter’s Presidency Jimmy Carter: 1976-1980; Democrat *Former governor of Georgia and a peanut farmer/businessman *Stark alternative to Nixon; Carter was an ‘outsider’ to Washington politics; from the Deep South, based his politics on moral/religious principles, honest *Main weakness: ineffective at getting his policies through Congress (similar to JFK) Domestic Policy: Energy-saving plan (during a period of economic downturn – high unemployment and high inflation; also, 1973 Yom Kippur War provoked oil crisis which raised prices and created shortages and rationing; the USA was importing 45% of its oil at a high cost) Carter proposes 10% rise in gas prices to encourage conservation; development of alternative fuels (coal, natural gas, solar) to reduce dependency on foreign oil Foreign Policy: 1) Continued reluctance to intervene in international affairs except for the encouragement of human rights in the Soviet Union and Latin America (eg. Reduction of military aid to Somoza (Nicaragua right-wing dictator) because of human rights violations) 2) Middle East peace negotiations – Camp David Agreement betw. Egypt & Israel 3) Panama Canal to be handed over to Panama in 2000 4) SALT II with USSR (1979) but unratified by Congress 5) Iran Hostage crisis (Nov. 1979) Islamic and nationalist revolutionaries overthrow Shah (US ally since 1950s); US Embassy in Tehran attacked and 100 hostages taken; some released but 52 remain hostage until January 1981; Carter unsuccessful in gaining release of the hostages 6) Soviet invasion of Afghanistan (Dec. 1979) Carter increased military forces in the region, gave aid to Pakistan (to bolster regime against its Afghan neighbour), embargoed wheat shipments to USSR, USA boycotted Moscow Olympics (1980) Ronald Reagan’s Presidency Ronald Reagan: 1980-1988; Republican *Former actor and governor of California; conservative, the ‘great communicator’ Domestic Policy: Reduce gov’t interference in people’s lives; limited role of the federal gov’t Lower taxes, deregulation of the economy, less gov’t spending on social welfare programs, Increased spending on military defense ‘Reaganomics’ (supply-side): reduce taxes on businesses and the wealthy in order to encourage economic growth; reversal of long-term trend since the New Deal But, economy remained weak: high unemployment, inflation, reduced social services hurt most vulnerable- the poor, aged, children, and minorities Foreign Policy: A more aggressive stance towards the Soviets – the so-called ‘Evil Empire’ 1979-1983: arms build-up (end of détente) MX Cruise missiles to NATO countries; Strategic Defense Initiative (SDI) ‘Star Wars’ nuclear missile shield in space; military aid to right-wing Contras in Nicaragua; support of repressive gov’t in El Salvador fighting left-wing guerrillas. By late 1980’s, renewal of détente with Gorbachev, signed INF Treaty (intermediate nuclear forces) – gradual elimination of nuclear weapons (first time that weapons were actually destroyed)