Chapter 39Chapter 39

““The Stalemated The Stalemated Seventies” Seventies”

End of the Economic End of the Economic BoomBoom

• After the flurry of economic growth After the flurry of economic growth in the 1950s and 1960s, the U.S. in the 1950s and 1960s, the U.S. economy stagnated in the 1970s.economy stagnated in the 1970s.

• The entire decade of the 1970s did The entire decade of the 1970s did not witness a productivity advance not witness a productivity advance equivalent to even one year’s equivalent to even one year’s progress in the preceding two progress in the preceding two decades.decades.

• At the new rate, it would take five At the new rate, it would take five hundred more years to bring about hundred more years to bring about another doubling of the average another doubling of the average worker’s standard of living.worker’s standard of living.

Why the Decline?Why the Decline?1.1. Increase presence of women and teenagers in the Increase presence of women and teenagers in the

workforce.workforce.2.2. Declining investment in new machineryDeclining investment in new machinery3.3. The heavy cost of compliance with government-The heavy cost of compliance with government-

imposed safety and health regulations.imposed safety and health regulations.4.4. The shift of the American economy from The shift of the American economy from

manufacturing to services, where productivity manufacturing to services, where productivity gains were allegedly more difficult to achieve gains were allegedly more difficult to achieve and measure.and measure.

5.5. Former President Lyndon B. Johnson’s spending on Former President Lyndon B. Johnson’s spending on the Vietnam War and on his Great Society the Vietnam War and on his Great Society programs. programs.

6.6. Both military spending and welfare spending are Both military spending and welfare spending are inherently inflationary in the absence of inherently inflationary in the absence of offsetting tax collections because they put offsetting tax collections because they put dollars in people’s hands without adding to the dollars in people’s hands without adding to the supply of goods that those dollars can buy.supply of goods that those dollars can buy.

Nixon’s Vietnamization of Nixon’s Vietnamization of the Warthe War

(Nixon Doctrine)(Nixon Doctrine)• Nixon called for “Vietnamization” in which Nixon called for “Vietnamization” in which

540,000 American troops would be pulled out of 540,000 American troops would be pulled out of Vietnam.Vietnam.

• The South Vietnamese would then gradually take The South Vietnamese would then gradually take over.over.

• On November 3, 1969 Nixon delivered a dramatic On November 3, 1969 Nixon delivered a dramatic televised appeal to the great “silent televised appeal to the great “silent majority,” who presumably supported the war.majority,” who presumably supported the war.

• Criticized the “effete corps of impudent Criticized the “effete corps of impudent snobs” and the Nattering nabobs of negativism” snobs” and the Nattering nabobs of negativism” with demanded quick withdrawal from Vietnamwith demanded quick withdrawal from Vietnam

• The war was fought generally by the least The war was fought generally by the least privileged Americans, since college students privileged Americans, since college students and critically skilled civilians were exempt, and critically skilled civilians were exempt, and there were also reports of dissension in and there were also reports of dissension in the army.the army.

My Lai MassacreMy Lai Massacre

• A unit of Charlie A unit of Charlie Company 1st Company 1st Battalion 20th Battalion 20th Infantry slaughter Infantry slaughter between200 and 500 between200 and 500 unarmed villagers unarmed villagers in the hamlet of My in the hamlet of My Lai. Led by Lai. Led by Lieutenant William Lieutenant William Calley, the platoon Calley, the platoon is ordered to enter is ordered to enter the village firing.the village firing.

My Lai MassacreMy Lai Massacre

Photo taken by Army photographer Ronald L. Haeberle on March 16th, 1968 in the aftermath of the My Lai massacre showing mostly women and children dead on a road.

Cambodianizing the Vietnam Cambodianizing the Vietnam WarWar

• North Vietnamese had been North Vietnamese had been using Cambodia as a using Cambodia as a springboard for funneling springboard for funneling troops and arms, and on April troops and arms, and on April 29, 1970, Nixon ordered U.S. 29, 1970, Nixon ordered U.S. troops to invade Cambodia to troops to invade Cambodia to stop this.stop this.

• Nixon never consulted Nixon never consulted Congress.Congress.

Hysteria in U.S Because of Hysteria in U.S Because of InvasionInvasion

• Much uproar was caused, as riots occurred at Much uproar was caused, as riots occurred at Kent State University and at Jackson State Kent State University and at Jackson State College.College.

• The Cambodian incident even more split the The Cambodian incident even more split the “hawks” and the “doves” “hawks” and the “doves”

• The U.S. Senate repealed the Tonkin Gulf The U.S. Senate repealed the Tonkin Gulf Resolution, and in 1971, the 26th Amendment, Resolution, and in 1971, the 26th Amendment, lowering the voting age to eighteen, was also lowering the voting age to eighteen, was also passed passed

• In June 1971, In June 1971, The New York TimesThe New York Times published a published a top-secret Pentagon study of America’s top-secret Pentagon study of America’s involvement of the Vietnam War—papers that had involvement of the Vietnam War—papers that had been leaked by Daniel Ellsberg, former Pentagon been leaked by Daniel Ellsberg, former Pentagon official—which exposed the deceit used by the official—which exposed the deceit used by the Kennedy and Johnson administrations.Kennedy and Johnson administrations.

•1970: Kent State RiotMary Ann Vecchio gestures and screams as she kneels by the body of a student lying face down on the campus of Kent State University, Kent, Ohio, on May 4, 1970. Four students died and nine others were wounded during student protests against the Vietnam War when National Guardsman opened fire.

1970 Kent State Riot1970 Kent State Riot

Jackson State RiotJackson State Riot

Bullets and blood on a dorm Floor at Jackson State

Pentagon PapersPentagon Papers

• They found that the They found that the U.S. government had U.S. government had continually resisted continually resisted full disclosure of full disclosure of increasing military increasing military involvement in involvement in Southeast Asia—air Southeast Asia—air strikes over Laos, strikes over Laos, raids along the coast raids along the coast of North Vietnam, and of North Vietnam, and offensive actions by offensive actions by U.S. marines had taken U.S. marines had taken place long before the place long before the American public was American public was informed. informed.

Daniel EllsbergDaniel Ellsberg• In 1971, Ellsberg In 1971, Ellsberg

precipitated a national precipitated a national uproar when he released the uproar when he released the Pentagon Papers, the U.S. Pentagon Papers, the U.S. military's account of military's account of activities in Vietnam, to activities in Vietnam, to The New York TimesThe New York Times. A . A Vietnam veteran and a Vietnam veteran and a senior research associate senior research associate at the Massachusetts at the Massachusetts Institute of Technology's Institute of Technology's Center for International Center for International Studies, Ellsberg helped to Studies, Ellsberg helped to compile the Pentagon Papers compile the Pentagon Papers while working in the while working in the Defense Department. Defense Department. Initially, he supported the Initially, he supported the war effort, but later war effort, but later turned against it. His turned against it. His release of the Pentagon release of the Pentagon Papers succeeded in eroding Papers succeeded in eroding public support for the war public support for the war

2004 Harvard Square Library

Nixon’s Nixon’s DétenteDétente with with Beijing (Peking) and Beijing (Peking) and

MoscowMoscow• China and the Soviet Union were clashing China and the Soviet Union were clashing over their own interpretations of over their own interpretations of Marxism, and Nixon seized this as a Marxism, and Nixon seized this as a chance for the U.S. to relax tensions. chance for the U.S. to relax tensions.

• Sent national security adviser Dr. Henry Sent national security adviser Dr. Henry A. Kissinger to China to encourage better A. Kissinger to China to encourage better relations relations

• Nixon became the first president to visit Nixon became the first president to visit China – he knew this would upset USSR China – he knew this would upset USSR (“China Card”)(“China Card”)

• Promoted good relations with USSRPromoted good relations with USSR– Grain dealGrain deal– Anti-Ballistic Missile TreatyAnti-Ballistic Missile Treaty– SALT – Strategic Arms Limitation TalksSALT – Strategic Arms Limitation Talks

Nixon and ChinaNixon and China

President Richard Nixon (in fur-collared coat) gestures as he walks along the Great Wall during a 1972 tour of China. Pat Nixon, Secretary of State William P. Rogers, and China's Vice-Premier Li Hsien-nien are among others in the party. (The Bettmann Archive)

Nixon and the Supreme Nixon and the Supreme CourtCourt

• The decisions of Chief Justice Earl The decisions of Chief Justice Earl Warren were liberal and reflected Warren were liberal and reflected its deep concern for the individual, its deep concern for the individual, no matter how lowly.no matter how lowly.

• The liberalness of the Supreme Court The liberalness of the Supreme Court frustrated Nixon.frustrated Nixon.

• Warren led the court into a series Warren led the court into a series of decisions that drastically of decisions that drastically affected sexual freedom, the rights affected sexual freedom, the rights of criminals, the practice of of criminals, the practice of religion, and civil rightsreligion, and civil rights

Griswold v. ConnecticutGriswold v. Connecticut• (1965) Court struck (1965) Court struck down a state law down a state law that banned the use that banned the use of contraceptives, of contraceptives, even by married even by married couples, but couples, but creating a “right creating a “right to privacy.” to privacy.”

Estelle Griswold & Cornelia Jahncke, Planned Parenthood League,

Connecticut

Coddling CriminalsCoddling Criminals

• Gideon v. Wainwright Gideon v. Wainwright - - (1963)Court said that all (1963)Court said that all criminals were entitled to criminals were entitled to legal counsel, even if they legal counsel, even if they were too poor to afford it.were too poor to afford it.

• Escobedo and Miranda Cases Escobedo and Miranda Cases - - two cases in which the Supreme two cases in which the Supreme Court ruled that the accused Court ruled that the accused could now remain silent.could now remain silent.

Other CasesOther Cases

• New York Times v. SullivanNew York Times v. Sullivan (1964) – The (1964) – The Court ruled unanimously that public Court ruled unanimously that public figures could sue for libel only if they figures could sue for libel only if they could prove that “malice” had motivated could prove that “malice” had motivated their defamers. their defamers.

• Engle v. Vitale (1962) and School Engle v. Vitale (1962) and School District of Abington Township v. SchemppDistrict of Abington Township v. Schempp - led to the Court ruling against - led to the Court ruling against required prayers and having the Bible in required prayers and having the Bible in public schools, basing the judgment on public schools, basing the judgment on the First Amendment, which separated the First Amendment, which separated church and statechurch and state

Warren BurgerWarren Burger• President Nixon appointed President Nixon appointed

Burger, an active Burger, an active Republican, Chief Justice Republican, Chief Justice of the US Supreme Court in of the US Supreme Court in 1969. Although Burger's 1969. Although Burger's court was more conservative court was more conservative than the previous Warren than the previous Warren Court, it was judicially Court, it was judicially active. Two of the most active. Two of the most famous and controversial famous and controversial decisions of the Burger decisions of the Burger Court were the Roe v. Wade Court were the Roe v. Wade abortion decision and the abortion decision and the University of California v. University of California v. Bakke affirmative action Bakke affirmative action decision. In 1986, Burger decision. In 1986, Burger resigned from his post and resigned from his post and became head of the US became head of the US Bicentennial Commission. Bicentennial Commission.

Liberalness of NixonLiberalness of Nixon• Expanded Medicare and MedicaidExpanded Medicare and Medicaid• Boosted Aid to Families with Dependent Boosted Aid to Families with Dependent

ChildrenChildren• Implemented Supplemental Security Income (SSI) Implemented Supplemental Security Income (SSI)

which gave generous benefits to the indigent which gave generous benefits to the indigent aged, blind and disabled.aged, blind and disabled.

• Improved Social SecurityImproved Social Security• Philadelphia Plan – Start of affirmative Philadelphia Plan – Start of affirmative

actionaction• Created Environmental Protection Agency (EPA)Created Environmental Protection Agency (EPA)• Created Occupational health and Safety Created Occupational health and Safety

Administration (OSHA)Administration (OSHA)• Clean Air Act of 1970 and the Endangered Clean Air Act of 1970 and the Endangered

Species Act of 1973 both aimed to protect and Species Act of 1973 both aimed to protect and preserve the environment and made notable preserve the environment and made notable progress.progress.

Election of 1972Election of 1972

• Republicans – Richard NixonRepublicans – Richard Nixon– Candidacy given a boost by Kissinger’s Candidacy given a boost by Kissinger’s announcement that “peace was at had in Vietnam”announcement that “peace was at had in Vietnam”

• Democrats – George McGovernDemocrats – George McGovern– promised to end the war within 90 days after promised to end the war within 90 days after the election and also appealed to teens and the election and also appealed to teens and women women

**Huge landslide victory for Nixon.**Huge landslide victory for Nixon.**540 to 17 in electoral college**540 to 17 in electoral college

Landslide VictoriesLandslide Victories

• 1920 - the greatest percentage point 1920 - the greatest percentage point margin in the popular vote (Harding margin in the popular vote (Harding 60.3% to Cox 34.1%).1936 - the 60.3% to Cox 34.1%).1936 - the greatest electoral votes difference greatest electoral votes difference between winner and opponent between winner and opponent (Roosevelt 523 to Landon 8).(Roosevelt 523 to Landon 8).

• 1964 - the highest percentage for 1964 - the highest percentage for winner (Lyndon Johnson 61.1%).winner (Lyndon Johnson 61.1%).

• 1984 - the highest number of 1984 - the highest number of electoral votes (Reagan 525).electoral votes (Reagan 525).

Shaky “Peace” in Shaky “Peace” in VietnamVietnam

• Nixon then ordered Nixon then ordered a bombing rampage a bombing rampage that eventually that eventually drove the North drove the North Vietnamese to the Vietnamese to the bargaining table bargaining table to agree to a to agree to a cease-fire, which cease-fire, which occurred on occurred on January 23, 1973.January 23, 1973.

• America’s way out America’s way out of Vietnamof Vietnam

• On a scorching hot day in 1964, Lt. Everett AlvarezOn a scorching hot day in 1964, Lt. Everett Alvarez was was shot down over Vietnam.  He was sent to the Hanoi Hilton shot down over Vietnam.  He was sent to the Hanoi Hilton and would not know freedom again for almost nine years, and would not know freedom again for almost nine years, earning the dubious honor of being the longest prisoner earning the dubious honor of being the longest prisoner of war in Vietnam.  Battling personal demons both in the of war in Vietnam.  Battling personal demons both in the Hilton and back home, Alvarez nevertheless overcame his Hilton and back home, Alvarez nevertheless overcame his obstacles, earning the respect of his fellow soldiers and obstacles, earning the respect of his fellow soldiers and becoming a true Legend. Photo Courtesy: Everett Alvarezbecoming a true Legend. Photo Courtesy: Everett Alvarez

Everett Alvarez Jr.

Gilligan’s IslandGilligan’s Island

Good TimesGood Times

All in the FamilyAll in the Family

Watergate Watergate

• On June 17, 1972, five men working for On June 17, 1972, five men working for the Republican Committee for the Re-the Republican Committee for the Re-election of the President were caught election of the President were caught breaking into the Watergate Hotel and breaking into the Watergate Hotel and fixing some bugs of the room.fixing some bugs of the room.

• Provoked the improper of illegal use of Provoked the improper of illegal use of the FBI and the CIA the FBI and the CIA

• Hearings proceeded, headed by Senator Hearings proceeded, headed by Senator Sam Erving, and John Dean III testified Sam Erving, and John Dean III testified about all the corruption, illegal about all the corruption, illegal activities, and scandal that took place.activities, and scandal that took place.

Watergate HotelWatergate Hotel

The break-in on June 17, 1972, at the Watergate office and apartment complex in Washington, D.C., led to the downfall of United States President Richard Nixon (1969-1974). Four Cubans and a member of the Committee to Reelect the President were arrested here burglarizing the national headquarters of the Democratic Party. Archive Photos

Deep ThroatDeep Throat• Deep Throat is the name that was Deep Throat is the name that was

given to a secret source who given to a secret source who leaked information about the leaked information about the involvement of U.S. President involvement of U.S. President Richard Nixon's administration Richard Nixon's administration in the events that came to be in the events that came to be known as the Watergate scandal. known as the Watergate scandal. "Deep Throat" was an important "Deep Throat" was an important source for source for Washington PostWashington Post reporters Bob Woodward and Carl reporters Bob Woodward and Carl Bernstein, who together wrote a Bernstein, who together wrote a series of articles on the series of articles on the scandal that played a decisive scandal that played a decisive role in exposing the misdeeds of role in exposing the misdeeds of the Nixon administration. The the Nixon administration. The scandal would eventually lead to scandal would eventually lead to the resignation of President the resignation of President Nixon Nixon

• In 2005,when Mark Felt admitted In 2005,when Mark Felt admitted to Vanity Fair magazine that he to Vanity Fair magazine that he was "Deep Throat," a source of was "Deep Throat," a source of Washington Post stories about Washington Post stories about the Watergate scandal that led the Watergate scandal that led to President Nixon's to President Nixon's resignation, years of resignation, years of speculation were put to rest. speculation were put to rest.

The Great Tape The Great Tape ControversyControversy

• For historical purposes Nixon recorded For historical purposes Nixon recorded everything that went on in the White everything that went on in the White House. He refused to give up the tapes House. He refused to give up the tapes which could have proved his guilt or which could have proved his guilt or innocense.innocense.

• Vice President Spiro Agnew was forced to Vice President Spiro Agnew was forced to resign in 1973 due to tax evasion.resign in 1973 due to tax evasion.

• ““Saturday Night Massacre”Saturday Night Massacre” (Oct. 20, 1973 (Oct. 20, 1973 - Archibald Cox, special prosecutor of - Archibald Cox, special prosecutor of the case who had issued a subpoena of the the case who had issued a subpoena of the tapes, was fired and the attorney general tapes, was fired and the attorney general and deputy general resigned because they and deputy general resigned because they didn’t want to fire Cox. didn’t want to fire Cox.

““I am Not a Crook”I am Not a Crook”• On November 17, 1973, On November 17, 1973, Nixon gave a televised Nixon gave a televised press conference urging press conference urging Americans to put Americans to put Watergate behind them, Watergate behind them, saying, "In my years of saying, "In my years of public life … I welcome public life … I welcome this kind of this kind of examination, because examination, because people have got to know people have got to know whether or not their whether or not their president's a crook. president's a crook. Well, I'm not a crook. Well, I'm not a crook. I've earned everything I've earned everything I've got. "I've got. "

The Unmaking of a The Unmaking of a PresidentPresident

• On July 24, 1974, the Supreme Court On July 24, 1974, the Supreme Court ruled that Nixon had to give all ruled that Nixon had to give all tapes to Congress.tapes to Congress.

• Late in July 1974, the House Late in July 1974, the House approved its first article of approved its first article of impeachment for obstruction of the impeachment for obstruction of the administration of justice.administration of justice.

• On August 5, 1974, Nixon finally On August 5, 1974, Nixon finally released the three tapes that held released the three tapes that held the most damaging information—the the most damaging information—the same three tapes that had been same three tapes that had been “missing.”“missing.”

Nixon’s ResignationNixon’s Resignation

• On August 8, On August 8, 1974, Nixon 1974, Nixon became the first became the first U.S. president U.S. president to resign to resign

Gerald FordGerald Ford

• Vice President Vice President Gerald Ford is Gerald Ford is sworn in as sworn in as president on president on August 9, 1974.August 9, 1974.

The Arab Oil Embargo and The Arab Oil Embargo and the Energy Crisisthe Energy Crisis

• An oil embargo which strictly An oil embargo which strictly limited oil in the U.S. was limited oil in the U.S. was enforced by OPEC after the enforced by OPEC after the U.S. backed Israel in its war U.S. backed Israel in its war against Syria and Egypt, against Syria and Egypt,

• OPEC lifted the embargo in OPEC lifted the embargo in 1974, and then quadrupled the 1974, and then quadrupled the price of oil.price of oil.

““I Can’t Drive 55”I Can’t Drive 55”

• A speed limit of A speed limit of 55 MPH was 55 MPH was imposed, and the imposed, and the oil pipeline in oil pipeline in Alaska was Alaska was approved in 1974 approved in 1974 despite despite environmentalistsenvironmentalists’ cries, and ’ cries, and other types of other types of energy were energy were pursued.pursued.

• The “Energy Crisis” The “Energy Crisis” of 1973-74 began of 1973-74 began when OPEC, the when OPEC, the Organization of Organization of Petroleum Exporting Petroleum Exporting Countries, Countries, instituted an oil instituted an oil embargo that reduced embargo that reduced the amount of oil the amount of oil provided to the provided to the United States. This United States. This embargo resulted in embargo resulted in long lines at gas long lines at gas stations and higher stations and higher prices for gasoline. prices for gasoline.

The First Un-elected The First Un-elected PresidentPresident

• Gerald Ford was Gerald Ford was the first un-the first un-elected president elected president ever, since his ever, since his name had been name had been submitted by Nixon submitted by Nixon as a VP candidate. as a VP candidate.

• In July 1975, Ford In July 1975, Ford signed the signed the Helsinki accords, Helsinki accords, which recognized which recognized Soviet boundaries.Soviet boundaries.

Defeat in VietnamDefeat in Vietnam

• Disastrously for Ford, South Disastrously for Ford, South Vietnam fell in 1975, and Vietnam fell in 1975, and American troops had to be American troops had to be evacuated, the last on April evacuated, the last on April 29, 1975, thus ending the 29, 1975, thus ending the Vietnam War.Vietnam War.

• Embarrassment for Ford and the Embarrassment for Ford and the U.S.U.S.

Evacuation of VietnamEvacuation of Vietnam

Mobs of Vietnamesee scale the wall of the U.S. Embassy in Saigon, trying to get to the helicopter pickup zone on

April 29, 1975. Neal Ulevich / AP

The last Huey out of Saigon, Vietnam War

1976 Election1976 Election

• Republicans – Republicans – Gerald FordGerald Ford

• Democrats – Democrats – Jimmy CarterJimmy Carter– ““I will never lie I will never lie to you.”to you.”

** Jimmy Carter ** Jimmy Carter barely squeezed barely squeezed by Gerald Ford by Gerald Ford 297 to 240. 297 to 240.

Jimmy CarterJimmy Carter

• Carter was a champion for human rights, Carter was a champion for human rights, and in Rhodesia, and South Africa, he and in Rhodesia, and South Africa, he stood up for black rights and privileges.stood up for black rights and privileges.

• Shining moment for Carter Administration Shining moment for Carter Administration was at Camp David when he brokered and was at Camp David when he brokered and agreement between Israel and Egypt.agreement between Israel and Egypt.– Anwar Sadat of Egypt and Menochim Begin of Anwar Sadat of Egypt and Menochim Begin of

IsrealIsreal

• Carter also pledged to return the Panama Carter also pledged to return the Panama Canal to Panama by the year 2000 and Canal to Panama by the year 2000 and resumed full diplomatic relations with resumed full diplomatic relations with China in 1979 China in 1979

Jimmy CarterJimmy Carter•   The Democrats reclaimed The Democrats reclaimed

the White House in the 1976 the White House in the 1976 election. The Governor from election. The Governor from Georgia defeated Gerald Georgia defeated Gerald Ford, who had become Ford, who had become President on August 9, President on August 9, 1974, upon the resignation 1974, upon the resignation of President Nixon. The of President Nixon. The oath of office was taken on oath of office was taken on the Bible used in the first the Bible used in the first inauguration by George inauguration by George Washington; it was Washington; it was administered by Chief administered by Chief Justice Warren Burger on Justice Warren Burger on the East Front of the the East Front of the Capitol. The new President Capitol. The new President and his family surprised and his family surprised the spectators by walking the spectators by walking from the Capitol to the from the Capitol to the White House after the White House after the ceremony.ceremony.

Camp David AccordsCamp David Accords• The U.S. presidential The U.S. presidential

retreat at Camp David, retreat at Camp David, Maryland, was the setting Maryland, was the setting for a historic moment in for a historic moment in September 1978. With the September 1978. With the help of U.S. President help of U.S. President Jimmy Carter, Egyptian Jimmy Carter, Egyptian President Anwar Sadat and President Anwar Sadat and Israeli Prime Minister Israeli Prime Minister Menachem Begin reached Menachem Begin reached agreements that would end a agreements that would end a 30-year state of war 30-year state of war between their countries. between their countries. Carter (center), Sadat Carter (center), Sadat (left), and Begin (right) (left), and Begin (right) are shown here at the White are shown here at the White House ceremony marking the House ceremony marking the Camp David Accords. (Jimmy Camp David Accords. (Jimmy Carter Library/National Carter Library/National Archives)Archives)

Carter’s DownfallCarter’s Downfall

• Double digit inflation – 13%Double digit inflation – 13%• High oil prices which led to high gas High oil prices which led to high gas prices, rations, and lines at the pump.prices, rations, and lines at the pump.

• Death of Isolationism due to the Death of Isolationism due to the realization that the U.S. could not use realization that the U.S. could not use oil as a weaponoil as a weapon

• High deficitHigh deficit• High interest rates – Federal Reserve High interest rates – Federal Reserve raised interest rates to 20+%raised interest rates to 20+%

• Energy woes due to lack of oil which Energy woes due to lack of oil which meant high energy costs.meant high energy costs.

SALT II TalksSALT II Talks• Carter signed the SALT II Carter signed the SALT II

agreements with Soviet agreements with Soviet Premier Premier Leonid BrezhnevLeonid Brezhnev, , but the U.S. senate but the U.S. senate wouldn’t ratify it wouldn’t ratify it

• An agreement to limit An agreement to limit strategic launchers was strategic launchers was reached in Vienna on June reached in Vienna on June 18, 1979, and was signed by 18, 1979, and was signed by Leonid Brezhnev and Leonid Brezhnev and President Jimmy Carter. Six President Jimmy Carter. Six months after the signing, months after the signing, the Soviet Union invaded the Soviet Union invaded Afghanistan, and as such Afghanistan, and as such the treaty was never the treaty was never ratified by the United ratified by the United States Senate. Its terms States Senate. Its terms were nonetheless honored by were nonetheless honored by both sides.both sides.

1980 Olympics1980 Olympics

• The Olympics as The Olympics as politicspolitics. .

• America led 62 nations America led 62 nations in boycotting the in boycotting the Games held in Moscow Games held in Moscow to protest the Soviet to protest the Soviet Union's invasion of Union's invasion of Afghanistan. Four Afghanistan. Four years later, the years later, the Soviets and their Soviets and their allies would boycott allies would boycott the Summer Olympics in the Summer Olympics in Los Angeles. Los Angeles.

Iranian Hostage Iranian Hostage SituationSituation

• In, in 1979, Iran’s In, in 1979, Iran’s shah Mohammed Reza shah Mohammed Reza Pahlevi, who had been Pahlevi, who had been installed by America in installed by America in 1953 and had ruled his 1953 and had ruled his land as a dictator, was land as a dictator, was overthrown and overthrown and succeeded by the succeeded by the Ayatollah Ruhollah Ayatollah Ruhollah Khomeini. Khomeini.

• Iranian fundamentalists Iranian fundamentalists were against Western were against Western customs, and Iran customs, and Iran stopped exporting oil; stopped exporting oil; OPEC also seized to OPEC also seized to hike up oil prices, hike up oil prices, thus causing another thus causing another oil crisis.oil crisis.

Ayatollah Khomeini returns from exile on an Air France plane from Paris. February 1, 1979.Photo by Mahmoud Mohammadi

Botched Rescue AttemptBotched Rescue Attempt• A daring US military rescue A daring US military rescue

operation codenamed Eagle operation codenamed Eagle Claw ended in further US Claw ended in further US humiliation in April 1980. humiliation in April 1980. The plan was to land The plan was to land aircraft covertly in the aircraft covertly in the desert allowing special desert allowing special forces to infiltrate Tehran forces to infiltrate Tehran and free the 52 hostages. and free the 52 hostages.

• But the planning was But the planning was flawed, and the mission had flawed, and the mission had to be aborted when two to be aborted when two helicopters were damaged in helicopters were damaged in a sandstorm and failed to a sandstorm and failed to reach the rendezvous point. reach the rendezvous point. Worse was to come when Worse was to come when another crashed into a another crashed into a transport plane as it was transport plane as it was pulling out.pulling out.

HostagesHostages• On November 4, 1979, On November 4, 1979,

anti-American Muslim anti-American Muslim militants stormed the militants stormed the U.S. embassy in U.S. embassy in Tehran and took Tehran and took hostages, demanding hostages, demanding that the U.S. return that the U.S. return the exiled shah who the exiled shah who had arrived in the had arrived in the U.S. two weeks U.S. two weeks earlier for cancer earlier for cancer treatments.treatments.

• The American hostages The American hostages languished in cruel languished in cruel captivity for 444 captivity for 444 daysdays