imposing wage and price controls,
Nixon’s rhetoric about the need
a policy in which the Right had no for “law and order” in the face of ris-
long-term faith, in 1971 . In the short ing crime rates, increased drug use,
run, these decisions stabilized the and more permissive views about
economy and established favorable sex resonated with more Americans
conditions for Nixon’s re-election in than not . But this concern was in-
1972 . He won an overwhelming vic- sufficient to quell concerns about
tory over peace-minded Democratic the Watergate break-in and the
Senator George McGovern .
economy . Seeking to energize and
Things began to sour very quick- enlarge his own political constituen-
ly into the president’s second term . cy, Nixon lashed out at demonstra-
Very early on, he faced charges that tors, attacked the press for distorted
his re-election committee had man- coverage, and sought to silence his
aged a break-in at the Watergate opponents . Instead, he left an unfa-
building headquarters of the Demo- vorable impression with many who
cratic National Committee and that saw him on television and perceived
he had participated in a cover-up . him as unstable . Adding to Nix-
Special prosecutors and congressio- on’s troubles, Vice President Spiro
nal committees dogged his presiden- Agnew, his outspoken point man
cy thereafter .
against the media and liberals, was
Factors beyond Nixon’s control forced to resign in 1973, pleading
undermined his economic policies . “no contest” to a criminal charge of
In 1973 the war between Israel and tax evasion .
Egypt and Syria prompted Saudi
Nixon probably had not known
Arabia to embargo oil shipments to in advance of the Watergate bur-
Israel’s ally, the United States . Other glary, but he had tried to cover it up, member nations of the Organization and had lied to the American people
of the Petroleum Exporting Coun- about it . Evidence of his involve-
tries (OPEC) quadrupled their pric- ment mounted . On July 27, 1974, the
es . Americans faced both shortages, House Judiciary Committee voted
exacerbated in the view of many by to recommend his impeachment .
over-regulation of distribution, and Facing certain ouster from office, he
rapidly rising prices . Even when the resigned on August 9, 1974 .
embargo ended the next year, prices
remained high and affected all areas
THE FORD INTERLUDE
of American economic life: In 1974,
inflation reached 12 percent, causing Nixon’s vice president, Gerald
disruptions that led to even higher Ford (appointed to replace Agnew),
unemployment rates . The unprec- was an unpretentious man who had
edented economic boom America spent most of his public life in Con-
had enjoyed since 1948 was grinding gress . His first priority was to restore to a halt .
trust in the government . However,
290
OUTLINE OF U.S. HISTORY
feeling it necessary to head off the dency in 1976 . Portraying himself
spectacle of a possible prosecution of during the campaign as an outsider
Nixon, he issued a blanket pardon to to Washington politics, he promised
his predecessor . Although it was per- a fresh approach to governing, but
haps necessary, the move was none- his lack of experience at the national
theless unpopular .
level complicated his tenure from the
In public policy, Ford followed start . A naval officer and engineer by
the course Nixon had set . Economic training, he often appeared to be a
problems remained serious, as infla- technocrat, when Americans want-
tion and unemployment continued ed someone more visionary to lead
to rise . Ford first tried to reassure them through troubled times .
the public, much as Herbert Hoover
In economic affairs, Carter at
had done in 1929 . When that failed, first permitted a policy of defi-
he imposed measures to curb in- cit spending . Inflation rose to
flation, which sent unemployment 10 percent a year when the Federal
above 8 percent . A tax cut, coupled Reserve Board, responsible for set-
with higher unemployment ben- ting monetary policy, increased
efits, helped a bit but the economy the money supply to cover deficits .
remained weak .
Carter responded by cutting the
In foreign policy, Ford adopted budget, but cuts affected social pro-
Nixon’s strategy of détente . Perhaps grams at the heart of Democratic
its major manifestation was the
domestic policy . In mid-1979, anger
Helsinki Accords of 1975, in which in the financial community prac-
the United States and Western Euro- tically forced him to appoint Paul
pean nations effectively recognized Volcker as chairman of the Federal
Soviet hegemony in Eastern Europe Reserve . Volcker was an “inflation
in return for Soviet affirmation
hawk” who increased interest rates
of human rights . The agreement in an attempt to halt price increases,
had little immediate significance, at the cost of negative consequences
but over the long run may have for the economy .
made maintenance of the Sovi-
Carter also faced criticism for his
et empire more difficult . Western failure to secure passage of an ef-
nations effectively used periodic fective energy policy . He presented
“Helsinki review meetings” to call a comprehensive program, aimed
attention to various abuses of hu- at reducing dependence on foreign
man rights by Communist regimes oil, that he called the “moral equiv-
of the Eastern bloc .
alent of war .” Opponents thwarted
it in Congress .
THE CARTER YEARS
Though Carter called himself a
J
populist, his political priorities were
immy Carter, former Democratic never wholly clear . He endorsed
governor of Georgia, won the presi- government’s protective role, but
291