Significance of Watergate

1. 
   Free press helps bring the scandal to national attention
   
2. 
   Another “black eye” for the U.S. nation and it turns people off from their government
   
3. 
   Shows that the system works?
   

No? – if he didn’t have the taped conversations, wouldn’t have happened

• 
  Born in 1913
  
• 
  Played football in University of Michigan – very athletic
  
• 
  Graduates from Yale Law
  
• 
  Serves in the Navy in WWII
  
• 
  Serves 1949-1973 in the House of Representatives – House Minority Leader
  
• 
  [1973] takes over as VP when Agnew resigns
  
• 
  takes over presidency when Nixon resigns – seen as the caretaker of the presidency
  
• 
  his wife founds the Betty Ford clinic
  

1. 
   Ford pardons Nixon one month after his presidency
   

2. 
   Economy
   

-stagflation

Ford – WIN – Whip Inflation Now

-cut federal spending

-voluntary restraint as long on energy – conservation

-increase in discount rate

Result: Recession [1974-1975]

Auto industry begins to fail – Japan, West Germany

-efficient

-cost-affordable

-smaller, sporty, faster

3. 
   SALT II
   

-limit each country to 2400 nuclear missiles

4. 
   Helsinki Accords
   

-sign for human rights in Europe

-ease control over Europe – allows for democratic ideas

5. 
   South Vietnam falls April 1975
   

6. 
   Myaguez Incident
   

-special forces save the 39 hostages

-but 41 special forces are killed in the process

Jimmy Carter

• 
  Born in 1924 in Georgia
  
• 
  Graduate of Naval Academy in Annapolis
  
• 
  Becomes a peanut farmer
  
• 
  [1971-1975] Governor of Georgia
  
• 
  wins 1976 election for presidency
  
• 
  defeats Ford 297:240 electoral votes
  
• 
  a born-again Christian
  
• 
  he is the ultimate outsider – not part of the political mix-up
  

1. 
   Carter is a D.C. outsider
   

2. 
   Economy
   

– to try to promote spending:

-public works projects

-tax cuts

-works for a while [1978] unemployment is down to 5%

[1979-1980] Recession

• 
  Prices increase 30%
  
• 
  Energy costs increase [1979] Oil crisis
  
• 
  Still have stagflation
  
• 
  Bank interest rates go up to 20%
  

• 
  Conservatism, voluntary restraint
  
• 
  Tells U.S. people that they should not expect unlimited growth
  
• 
  Department of Energy [1977]
  
• 
  Carter is unable to deal with the recession
  

1. 
   Foreign Affairs
   

• 
  Carter draws attention to human rights
  
• 
  Seeks better relations with Africa, Panama (Panama Canal treaties)
  
  • 
    [1999] give control to Panamanians
    
  • 
    full diplomatic recognition to China
    

4. 
   Soviet Union
   

• 
  Carter and Brezhnev meet in June 1979 – sign SALT II
  

-Carter pulls treaty from the Senate

-U.S. boycott the Summer Olympics in Moscow

5. 
   Camp David Accords
   

-between Sadat of Egypt and Bagin of Israel

6. 
   Iran
   

-the Shah is allowed into the U.S. for cancer treatment by Carter

-biggest mistake of Carter

-Iranian students storm the U.S. embassy in Tehran

-take over 50 hostages for 444 days

-until Reagan’s inauguration day

• 
  Born in 1911 in Illinois
  
• 
  Tough childhood – moved about 10 times, father was an alcoholic
  
• 
  Becomes an actor, acts in 54 films – then becomes a GE spokesman
  
• 
  [1967-1975] governor of California
  
• 
  Republican
  
• 
  [1981-1989] President of the U.S.
  
  • 
    oldest president at inauguration at 70 years old
    

-almost dies

-the “Teflon” president – nothing bad ever stuck to Reagan

1. 
   Reaganomics
   
   • 
     Trickle-down economics (give $ to top, starts spreading down)
     
   • 
     Massive tax cuts – income taxes are cut 25% over 3 years
     
   • 
     Massive reduction in government spending to social programs
     
   • 
     Cuts back government regulations - “get rid of government”
     
   • 
     Increases the discount rate
     

But, things turn around in 1983

Lasting Effects:

• 
  An improved economy
  
• 
  Decreased unemployment
  
• 
  Increase in consumer spending
  
• 
  Increase in building houses, complexes…etc.
  
• 
  Bull Market [1983-1987]
  
• 
  A richer middle class
  

Bad things:

• 
  Trade gap widens (increase imports, decrease exports)
  
• 
  Farmers are going bankrupt
  
• 
  Plight of the inner cities – due to the reduction in government spending to social programs
  
  • 
    Get poorer
    
  • 
    Drug use
    

-1/5 of the market is lost in one day

-larger than 1929 crash – but does not lead to a depression

Military spending increased – huge budget deficits – national debt triples

2. 
   The Cold War
   

-starts a massive military buildup - more nuclear weapons

[1981] $171 Billion

[1985] $300 Billion per year

SDI – the Star Wars program – missile defense system

Leads Reagan & the U.S. to El Salvador, Nicaragua and Granada

Result – end of the Cold War

*Election 1984 – first female to run for VP – Geraldine – loses*

Reagan and Gorbechau – begun to end the war

-institute Parastraika, Glasnos – wants better relations with the U.S.

[1985] first of meetings – Geneva

[1986] meet in Reykjavik, Iceland

[1987] INF peace treaty – Intermediate Nuclear Forces Treaty

-both agree to remove nuclear missiles in Europe

-both agree to inspections afterward

[1988] Reagan visits Moscow

-Soviet Union pulls forces from Afghanistan

3. 
   The Middle East
   

[Oct 1983] Suicide bomber drives a truck into barracks and kills 200+ Marines

-U.S. had been secretly selling weapons to Iran in exchange for money