History of the United States (1964–1980) facts for kids

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The United States of America
1964–1980
Buzz Aldrin in 1969 as part of NASA's Apollo 11 spaceflight that was the first to land humans on the Moon.
Preceded by	History of the United States (1945–1964)
Including	Late New Deal Era Cold War Fourth Great Awakening Second Great Migration Third Industrial Revolution
Followed by	History of the United States (1980–1991) - Reagan Era

The history of the United States from 1964 to 1980 was a time of big changes. It saw the end of the Civil Rights Movement and the Vietnam War. The Cold War continued, including the exciting Space Race to the Moon.

The economy was doing well at first. But then it faced new challenges from other countries. The 1973 oil crisis also caused problems. American society felt divided by the Vietnam War. Many people protested against the war. The Watergate affair also shocked the nation. It showed serious problems in the government. By 1980, with the Iran hostage crisis, many felt a sense of national sadness.

This period ended with the election of Ronald Reagan. He was a conservative Republican. His win started the "Reagan Era" and a new direction for the country. The Democratic Party had disagreements. Many younger voters wanted peace. Some Democrats even joined the Republican Party. They liked Reagan's strong foreign policy. Republicans generally agreed on being tough against Communism. They also supported democracy and Israel.

Memories of the 1960s and 1970s shaped politics for a long time. President Bill Clinton once said that if you thought the 1960s had more good than bad, you were likely a Democrat. If you thought there was more harm, you were likely a Republican.

Johnson Administration: Big Changes in America (1964-1968)
Nixon Administration: New Directions and Challenges (1969-1974)
Ford Administration: Healing the Nation (1974-1977)
Carter Administration: A Focus on Human Rights (1977-1981)
- Foreign Affairs: Hostages and a New Cold War
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Johnson Administration: Big Changes in America (1964-1968)

The "Great Society" and New Laws

The mid-1960s saw many new ideas for social change. President Lyndon B. Johnson (1963–69) led these efforts. He passed his "Great Society" programs. These included important civil rights laws. They ended segregation, which was the separation of people by race.

Other programs helped with healthcare for older people (Medicare). They also expanded aid for those in need (welfare). There was federal help for education and support for the arts. New laws aimed to protect the environment. Many programs worked to end poverty.

Johnson believed these programs would help everyone. He won a huge election in 1964. He beat Barry Goldwater, a conservative. This win changed how Congress worked. But Republicans gained power again in 1966. Richard Nixon won the presidency in 1968. Nixon kept many of Johnson's programs. A bigger shift to conservative ideas came later with Ronald Reagan in 1980.

The "Sixties" Culture and Social Shifts

The term "The Sixties" describes a time of big cultural changes. These changes happened worldwide. This period started around 1963. It ended around 1974 with the Watergate scandal.

Growing Distrust in Government

People started to trust the government less. This was a common feeling in America. The Watergate scandal in 1973–1974 made it worse. President Richard Nixon had to resign. Many of his top helpers faced criminal trials. The news media looked for more scandals. This affected both major political parties.

People also started to distrust big businesses and labor unions. Some questioned if technology could solve all problems. This included concerns about nuclear power.

Conservatives argued that rising crime rates showed that liberal policies in cities were failing. Meanwhile, new groups challenged older liberal ideas. The "New Left" questioned the Vietnam War. They gained support from college students and younger voters. A "cultural war" began. It was a fight between conservatives, liberals, and the New Left. It involved ideas about freedom, divorce, and even fashion.

A new group also became important: the religious right. They strongly supported conservative ideas.

A big success for liberals was the civil rights laws. These laws helped African Americans. They also created new black voters in the South. But some white working-class people felt left out. Many conservative white Southerners then joined the Republican Party.

In foreign policy, the Vietnam War caused many disagreements. Nixon tried to ease tensions with the Soviet Union. This was called "détente." But Reagan and conservatives disagreed. Reagan saw the Soviet Union as an enemy. He believed it had to be defeated.

A new problem arose in Iran. The pro-American government was overthrown. New hostile leaders took over. Students took over the American Embassy. They held American diplomats hostage for over a year. This showed weaknesses in President Jimmy Carter's foreign policy.

The economy was also struggling. Prices were rising fast (inflation). This hurt millions of Americans' savings. Unemployment was high, and growth was slow. Gas shortages made the energy crisis very real.

Ronald Reagan became a leader of a big conservative shift. This shift changed many policies that had been in place for decades.

The Civil Rights Movement: Fighting for Equality

Electoral College 1964

The 1960s saw many protests. There were demonstrations, and sometimes riots. African American youth protested for civil rights. Leaders like Dr. Martin Luther King Jr., James Bevel, and the NAACP led these protests. King and Bevel used the media to show the public the unfair treatment of peaceful protesters. This helped change public opinion.

This activism led to important political changes. The Civil Rights Act of 1964 was passed. It ended segregation in public places. The Voting Rights Act of 1965 also had a big impact. It helped many new black voters register. Within months, a quarter-million new black voters registered. Within four years, voter registration in the South more than doubled.

The 1964 Presidential Election

In the 1964 election, Lyndon Johnson presented himself as a moderate leader. He ran against Republican Barry Goldwater. Johnson's campaign showed Goldwater as very conservative. A famous ad, "Daisy Girl," showed a little girl and then a nuclear explosion. This ad suggested Goldwater was dangerous.

Johnson won by a lot. He got 61.1% of the popular vote. He lost only five states in the Deep South and Goldwater's home state of Arizona. In the Deep South, black people were not yet allowed to vote.

Goldwater's campaign energized the conservative movement. This movement grew within the Republican party. They found a new leader in Ronald Reagan. He became governor of California in 1966. He ran for president in 1976 but lost. But he was ready for 1980.

Programs to Fight Poverty

The "Great Society" reforms had two main goals. They wanted to end poverty and racial injustice. New programs were started for education, healthcare, and city problems.

The biggest programs were Medicare and Medicaid. They started in 1965. Medicare helps older people with medical costs. Medicaid helps people who are poor.

The main part of the "War on Poverty" was the Economic Opportunity Act of 1964. This law created the Office of Economic Opportunity (OEO). The OEO oversaw programs to help people improve their lives. These programs focused on education, job training, and community development. A key idea was "community action." This meant poor people helped plan and run the programs designed to help them.

The End of the Space Race

The Space Race began in 1957. That's when the Soviet Union launched Sputnik 1, the first satellite. The United States and the Soviet Union competed to be first in space. After the Soviets put the first man, Yuri Gagarin, in space in 1961, President John F. Kennedy pushed NASA to catch up. He famously said the U.S. should land a man on the Moon before 1970.

This effort led to Project Gemini (1965–1966) and the Apollo program. Despite the sad loss of the Apollo 1 crew, Kennedy's goal was met. The Apollo 11 mission landed the first astronauts on the Moon in 1969.

After losing the Moon race, the Soviets focused on space stations. They launched Salyut 1 in 1971. The U.S. built Skylab, an orbital workstation, used from 1973 to 1974. Later, during a time of better relations called "détente," the U.S. and Soviets worked together. The Apollo–Soyuz Test Project in 1975 was a joint mission. It was the last U.S. crewed space flight until the Space Shuttle in 1981. This mission is seen as the end of the Space Race. The Space Race led to huge increases in spending on education and research. This sped up scientific discoveries and created new technologies.

The Vietnam War: A Divisive Conflict

The U.S. policy of Containment meant fighting communism everywhere. The Communists often targeted weaker allies. President Johnson focused on his domestic policies. So, he tried to keep the Vietnam War quiet. Most of his advisors were not hopeful about the war. Johnson feared Congress would demand a full victory.

In August 1964, Johnson got Congress's support. The Gulf of Tonkin Resolution gave him broad power to use military force. In July 1965, Johnson greatly increased U.S. involvement. He sent American combat troops to fight the Viet Cong. The U.S. Air Force bombed supply lines. By 1968, half a million American soldiers were in South Vietnam.

In February 1968, the Viet Cong launched the Tet Offensive. This was a big attack across South Vietnam. The South Vietnamese army fought them off. The Viet Cong became less effective. After this, the main enemy was North Vietnam's army. However, the Tet Offensive was a public relations disaster for Johnson. People realized the U.S. was deeply involved in a war few understood. Republicans demanded victory or withdrawal. On the left, calls for immediate withdrawal grew louder. Many soldiers came from poorer backgrounds.

The Antiwar Movement

The antiwar movement began in 1964. Some people opposed the war for moral reasons. They supported the Vietnamese peasants against the Americans. Opposition was strong among black civil rights activists and college students.

The Vietnam War was heavily covered by the media. It was called the first "television war." The "New Left" strongly opposed the war.

Despite media attention, antiwar activists were a minority. Most were college-educated and from higher income families. Polls showed most Americans wanted to win the war. But few wanted a full mobilization or a bigger draft. Even Republican candidates in 1968, like Nixon, did not call for nuclear weapons. They remembered that Barry Goldwater's strong stance might have cost him the 1964 election.

The Vietnam draft had problems. It relied heavily on lower-middle-class Americans. It often exempted college students and others. However, most draftees were not poor. The average draftee was white and from a blue-collar background. Few Ivy League graduates were among the 58,000 U.S. servicemen killed or wounded.

The Vietnam draft took fewer men than the Korean War draft. The war caused little disruption to most Americans' lives. The U.S. economy was booming in the late 1960s. Unemployment was low, and GDP grew fast.

1968: A Tumultuous Year for Democrats

In 1968, Johnson's strong support from 1964 fell apart. Many Republicans returned to their party. They supported Richard Nixon. George Wallace gained support from most Southern white voters. This group had been a core part of the Democratic Party for a century. Blacks, students, and intellectuals strongly opposed Johnson's policies.

Senator Eugene McCarthy ran for president on an antiwar platform. He gained support from intellectuals and college students. McCarthy was not well-known. But he almost beat Johnson in the New Hampshire primary. Thousands of students campaigned for him. Johnson no longer had majority support in his party. So, he dropped out of the race. He promised to start peace talks.

Robert F. Kennedy then joined the race. He also ran on an antiwar platform. He gained support from different ethnic groups and black voters. Vice President Hubert Humphrey entered the race late. But he had strong support from traditional Democrats. Humphrey supported Johnson's war policy. In April 1968, there were huge riots. This happened after the assassination of Martin Luther King Jr..

Kennedy won the California primary. But he was assassinated that night. McCarthy could not overcome Humphrey's support. The Democratic convention in Chicago was chaotic. Police clashed with antiwar protesters. The party's deep divisions were clear. Humphrey won the nomination. He ran against Republican Richard Nixon and independent George Wallace.

Nixon appealed to the "silent majority." These were moderate Americans who disliked the "hippie" counterculture. Nixon promised "peace with honor" in Vietnam. He proposed the Nixon Doctrine. This plan aimed to let the Vietnamese fight their own war. He called it "Vietnamization." Nixon won the presidency. But Democrats kept control of Congress. The deep divisions in the Democratic Party lasted for decades.

Changes in Gender Roles: The Women's Movement

The Women's Movement (1963–1982)

Gloria Steinem at a meeting of the Women's Action Alliance, 1972

A new awareness of inequality for American women began. It started with Betty Friedan's book, The Feminine Mystique, in 1963. The book explained how many housewives felt unhappy. It criticized American culture for saying women could only find happiness as wives and mothers. Friedan argued that women could do any job men could. In 1966, Friedan and others started the National Organization for Women (NOW). It was like the NAACP, but for women.

Protests began, and the "Women's Liberation Movement" grew. It gained a lot of media attention. By 1968, it was a major social movement in the U.S. Marches, parades, and boycotts drew thousands, sometimes millions. Friedan's Women's Strike for Equality (1970) was a national success. The movement had different groups with different ideas. NOW was more liberal. The Women's Equity Action League (WEAL) was more conservative. The National Women's Political Caucus (NWPC) was in the middle. Younger women formed more radical groups.

Gloria Steinem was another important feminist leader. She helped start the NWPC and the Women's Action Alliance. She also edited the movement's magazine, Ms.. The proposed Equal Rights Amendment (ERA) to the Constitution was passed by Congress in 1972. About 70% of Americans supported it. But it failed to be ratified in 1982. It needed only three more states to become law.

Conservative women, led by Phyllis Schlafly, fought against the ERA. They argued it would hurt the role of housewives. They also said it could make young women eligible for the military draft. There were also differences between older feminists like Betty Friedan and younger, more radical feminists. Friedan focused on workplace and income equality. The movement was mostly led by well-off white women. It did not attract many African-American women. They often felt their race, not their gender, was their biggest challenge. The women's liberation movement largely ended with the ERA's failure in 1982. The country also became more conservative during the Reagan years.

Despite the ERA's failure, many laws were passed. These laws made pay, employment, and education equal for women. They also ended pregnancy discrimination. The Supreme Court ruled that the Fourteenth Amendment applied to women. Social customs also began to change. People started to accept women's equality.

Nixon Administration: New Directions and Challenges (1969-1974)

President Richard Nixon was seen as a conservative. But he took many liberal stances. This included healthcare, welfare spending, and environmental protection. He kept high taxes and strong economic rules. In August 1971, he took the U.S. off the gold standard. He also put controls on prices and wages for a time. In his last year, Nixon even suggested a national healthcare system.

Nixon changed U.S. foreign policy. He moved away from containment of communism. He aimed for "detente" with the Soviet Union and China. This meant easing tensions. He played them against each other. This policy with China is still used today. The Soviet Union, however, expanded its influence. Both China and the Soviet Union allowed U.S. involvement in Vietnam. This left North Vietnam on its own.

Nixon promoted "Vietnamization." This meant strengthening South Vietnam's military. So, U.S. forces could leave. Combat troops were gone by 1971. Nixon announced a peace treaty in January 1973. He had promised to help South Vietnam if North Vietnam attacked. But his promise became worthless when he resigned in August 1974.

In May 1970, antiwar protests became violent. National Guard troops shot student demonstrators at the Kent State shootings. Many colleges, especially top ones, closed down.

In 1972, Nixon ended mandatory military service. This had been in place since the Korean War. The last American was drafted in June 1973. The 26th Amendment was also passed. It lowered the voting age from 21 to 18.

The Nixon administration used student protests to gain support. They appealed to middle-class suburbanites and working-class whites. These groups disliked radical extremists. The economy also played a role. The Vietnam War caused inflation. This meant real incomes went down. Many lower-middle-class whites felt that federal programs helped black people and the poor more. They felt their own wages were just above welfare payments.

Many articles at the time showed this discontent. A 1969 Newsweek poll found that many middle-class Americans believed black people had better chances. They thought black people had better schooling, homes, and jobs. The same poll showed that most believed black militants and campus protesters were treated too easily. They also thought most welfare recipients could help themselves. Analysts linked these feelings to the economic worries of "middle Americans." These were people earning between $5,000 and $15,000 a year. They included many white ethnic groups. They made up 55% of the U.S. population. Most were blue-collar workers, office workers, and teachers. They were not poor, but they worried about debt and inflation. They feared losing what they had worked for. From 1956 to 1966, income rose by 86%. But the cost of borrowing rose even more, by 113%. Many families struggled to keep their "middle-class" status. Rising inflation meant real incomes stopped growing. Struggling to get by, many middle Americans saw anti-poverty spending as a threat.

Irregular employment was also a problem. In 1969, 20% of workers were unemployed at some point. This rose to 23% in 1970. Many people had little or no savings. In 1969, a fifth of the population had no liquid assets. Nearly half had less than $500.

Nixon was re-elected in 1972. He beat the liberal, anti-war George McGovern by a landslide. He won every state except Massachusetts. But Nixon also faced much anger over the Vietnam War. Incidents like the My Lai Massacre further hurt support for the war. This increased efforts to "Vietnamize" the conflict.

The growing Watergate scandal was a huge problem for Nixon. It hurt his public support. The House Judiciary Committee began impeachment hearings in May 1974. New information showed Nixon had planned to cover up the burglary. He did this to protect his re-election campaign. Instead of facing impeachment, he resigned on August 9, 1974. His successor, Gerald R. Ford, pardoned Nixon. This ended the investigations into Nixon. But it hurt Ford's own popularity.

South Vietnam quickly fell as the North invaded. Saigon fell on April 30, 1975. Nearly a million Vietnamese fled to the U.S. as refugees. The impact on the U.S. was not huge. But it left a "Vietnam Syndrome." This made the U.S. careful about getting involved in other military conflicts. Nixon and his next two successors, Ford and Carter, avoided military interventions.

"Stagflation": Economic Troubles

Percent annual change in the US Consumer Price Index, a measure of inflation, 1952–1993

When President Johnson cut taxes in 1964, he also increased spending. He spent more on domestic programs and the Vietnam War. This led to a big increase in the money supply. This caused prices to rise quickly. Inflation also came from the U.S. losing its top spot in international trade. Other countries were catching up. After World War II, the U.S. had easy access to raw materials. It also had big markets for its goods. The U.S. made about a third of the world's industrial goods. This was because Europe was damaged by the war. By the 1960s, industrialized nations competed for scarce raw materials. Developing countries also demanded higher prices.

U.S. industries like cars, steel, and electronics faced tough competition. Foreign companies had newer factories and better products. Inflation had been low (3% a year) from 1949 to 1969. But in the 1970s, energy and consumer product costs rose steadily. The U.S. also faced problems from being too comfortable. Many Americans thought good times would last forever. There was little investment in new factories or infrastructure. The optimism of the 1950s and 60s faded. People became more cynical about technology. They worried about pollution from cars and factories. Events like the Cuyahoga River Fire in 1969 and the Three Mile Island nuclear accident in 1979 fueled these concerns.

Nixon promised to fix slow growth and inflation, called "stagflation." He suggested higher taxes and less spending. But Congress resisted. So, Nixon tried to control the currency. His appointees at the Federal Reserve tried to reduce the money supply. They raised interest rates. But it didn't stop inflation much. The cost of living rose 15% in Nixon's first two years.

Nixon was most interested in foreign policy. He admitted domestic affairs bored him. His first Treasury Secretary, David M. Kennedy, was quiet. Nixon didn't pay much attention to him. In January 1971, John Connally became Treasury Secretary. By summer 1971, Nixon was under pressure to act. On August 15, 1971, he ended the U.S. dollar's link to gold. This ended the Bretton Woods system from World War II. The U.S. dollar fell in world markets. This helped American exports. But it also made imports more expensive. Nixon was hesitant to do this. He worried it would make the Soviet Union think capitalism was failing.

Also on August 15, 1971, Nixon froze all wages and prices for 90 days. This was "Phase I" of his economic plan. In November, "Phase II" set rules for wage and price increases. Inflation slowed for a while. But the recession continued with rising unemployment. To fight the recession, Nixon changed course. He increased spending and the money supply. In "Phase III," strict controls were lifted. As a result, inflation rose again. The administration mostly ignored this. White House press conferences focused on foreign policy. But polls showed 80% of Americans worried about the economy. Connally left in 1973. George Shultz became Treasury Secretary.

The administration kept focusing on foreign policy. But polls showed the economy was the main concern for most Americans. White House press conferences in 1973 were mostly about Vietnam and Watergate. They ignored economic issues that affected Americans daily.

Inflation led to big changes in economic policies. After the Great Depression, recessions were seen as the biggest threat. They were fought with government spending or tax cuts. In the 1970s, big price increases, especially for energy, caused fear of inflation. So, leaders focused on controlling inflation. They limited spending, resisted tax cuts, and controlled the money supply. Rising meat prices led to the 1973 meat boycott. Nixon's economic programs showed confusion about America's future prosperity. Nixon and his advisors didn't fully understand the global economy. They believed in government intervention. They preferred quick fixes. These problems set the stage for conservative changes. They also led to a tougher foreign policy. And they led to a move away from welfare solutions for minorities and the poor.

The 1973 Oil Crisis

Line at a gas station, June 15, 1979.

The Organization of Petroleum Exporting Countries (OPEC) became very powerful. Oil became a tool for developing nations. After the 1973 Yom Kippur War, Arab OPEC members stopped shipping oil. They stopped sending it to nations supporting Israel, like the U.S. and Western Europe. Other OPEC nations raised their prices by 400%. This caused the 1973 world oil shock. U.S. drivers faced long lines at gas stations. Public and private buildings closed to save heating oil. Factories cut production and laid off workers. The oil embargo was a major cause of the high inflation in the 1970s. This was part of a larger energy crisis that lasted the whole decade.

The U.S. government reacted quickly but with limited success. A national maximum speed limit of 55 mph was set. This aimed to reduce gas use. President Nixon named William E. Simon "Energy Czar." In 1977, a Department of Energy was created. This led to the U.S. Strategic Petroleum Reserve. The National Energy Act of 1978 also responded to this crisis. Gas rationing became unpopular.

Tens of thousands of local gasoline stations closed during the fuel crisis. This station at Potlatch, Washington was turned into a religious meeting hall.

U.S. carmakers, the "Big Three," had to make smaller cars. This was due to new fuel economy standards. By the late 1970s, huge, heavy cars were gone. After 1980, many Detroit carmakers switched to front-wheel drive. This was to meet the 27.5 mpg fuel economy rule. The car industry faced a big decline in the 1970s. This was due to inflation, high energy prices, and being too comfortable. Interest in sports cars dropped after 1972. New safety and emissions rules made American cars heavy. They also had driving problems.

Chrysler, the smallest of the Big Three, faced money problems starting in 1976. President Carter refused to give them federal aid. He said he would not help if the current management stayed. In 1978, Lee Iacocca became Chrysler president. He inherited a company close to bankruptcy. Iacocca convinced Congress to approve federal loan guarantees. Ford was also struggling and almost bankrupt by 1980. Only General Motors, a huge company, continued as usual.

From 1972 to 1978, industrial productivity grew by only 1% a year. This was much lower than the 3.2% growth from 1948 to 1955. The U.S. standard of living fell to fifth in the world. Denmark, West Germany, Sweden, and Switzerland moved ahead.

Détente with the Soviet Union and China

Nixon's main goal was to change relations with the Soviet Union and China. He wanted to move from containment to "detente." In February 1972, Nixon made a historic visit to China. It was shown on national TV. He wanted to start diplomatic relations. Relations with China had been hostile since the Korean War. The U.S. still said Taiwan's government was the real China. But Nixon believed in restoring ties with China. This was because China's relationship with the Soviet Union had become hostile. After his China trip, Nixon met Soviet leader Leonid Brezhnev. They signed the SALT Treaty in Vienna.

Watergate: A Scandal That Shook the Nation

After much debate, Democrats chose liberal South Dakota Senator George McGovern for president. Nixon removed many issues McGovern could use. He ended the draft, started withdrawing from Vietnam, and restored ties with China. On Election Day, Nixon won every state except Massachusetts. But Democrats still controlled Congress.

Nixon was investigated for a burglary and cover-up. This happened at the Democratic National Committee offices in the Watergate complex in Washington. The House Judiciary Committee started public impeachment hearings against Nixon on May 9, 1974. More and more shocking facts came out. They showed strong evidence that Nixon planned the cover-up. He did this to protect his re-election campaign. Instead of facing impeachment by the House and possible removal by the Senate, he resigned. His resignation was effective August 9, 1974. His successor, Gerald R. Ford, a moderate Republican, pardoned Nixon. This ended the investigations into Nixon. But it hurt Ford's own popularity.

Ford Administration: Healing the Nation (1974-1977)

Gerald Ford's official portrait.

Gerald Ford knew he had not been elected president or vice-president. He spoke to the nation right after taking office. He promised to be "President of all the people." He asked for their support and prayers. He said, "Our long national nightmare is over."

Ford's time in office saw the final collapse of South Vietnam. This happened after the Democrat-controlled Congress stopped all aid to that country. Ford tried to control inflation. But he had little success. His only idea seemed to be encouraging people to wear "WIN" (Whip Inflation Now) buttons. He also appointed a Supreme Court justice, John Paul Stevens.

During Ford's presidency, the nation celebrated its 200th birthday on July 4, 1976. This event brought some excitement. Americans had felt cynical and disappointed. This was due to Vietnam, Watergate, and economic problems. Ford's pardon of Richard Nixon before the 1974 elections was not popular. Democrats gained many seats. This brought in many young liberal activists. Many of them were suspicious of the military and the CIA.

Carter Administration: A Focus on Human Rights (1977-1981)

Jimmy Carter's official portrait.

The Watergate scandal was still fresh in voters' minds. Former Georgia governor Jimmy Carter won the Democratic presidential primaries in 1976. He was known for his honesty. He was also seen as an outsider from Washington, D.C.. Trust in government was low. Voter turnout was also low. Carter became the first president elected from the Deep South since the American Civil War. He stressed that he was an outsider. He was not part of the Washington political system. He also said he was not a lawyer.

Carter took steps to show he was a common person. He walked to the Capitol for his inauguration. He wore a sweater in the Oval Office to encourage saving energy. The new president started his term with a Democratic Congress. Democrats had a large majority in both the House and Senate. This was the first time since 1965. Carter's main achievements included creating a national energy policy. He also combined government agencies. This led to two new cabinet departments. These were the United States Department of Energy and the United States Department of Education. Congress also removed rules for trucking, airlines, and other industries. They also strengthened the social security system.

Carter appointed many women and minorities to important government jobs. But he still had disagreements with feminist leaders. Environmentalists pushed for strong laws to protect the environment. They expanded the National Park Service in Alaska. This protected 103 million acres of land. Carter failed to create a national health plan. He also did not reform the tax system, as he had promised. Republicans won the House in the midterm elections.

After the 1974–75 oil embargo recession, the economy grew again. This lasted through 1978. But inflation and interest rates remained a problem. After the Iranian Hostage Crisis began in spring 1979, the U.S. economy entered a deep recession. It was the worst since the Great Depression.

President Carter emphasized the energy crisis. He ordered speed limit restrictions. He also limited heating in buildings. In 1979, Carter gave a TV speech. He blamed the nation's problems on a "crisis of confidence" among Americans. This "malaise speech" hurt his re-election chances. It seemed pessimistic. It also seemed to blame Americans for his own failed policies.

Foreign Affairs: Hostages and a New Cold War

Carter's term is best known for the 444-day Iranian hostage crisis. It also saw a shift away from easing tensions with the Soviet Union. The Cold War heated up again.

In foreign affairs, Carter achieved several things. He mediated the Camp David Accords. He also signed the Panama Canal Treaties. He created full diplomatic relations with the People's Republic of China. He also negotiated the SALT II Treaty. He strongly supported human rights worldwide. He made human rights central to his foreign policy.

Foreign policy was quiet during Carter's first two years. But the Soviet Union seemed to be getting stronger. It expanded its influence in developing countries. It had help from allies like Cuba. Soviet military spending also rose steadily. In 1979, Soviet troops invaded Afghanistan. They did this to support a Marxist government there. In protest, Carter announced the U.S. would boycott the 1980 Summer Olympics in Moscow. After nine years, the Soviets could not defeat Afghan rebels. They pulled out of the country. Soviet spying on the U.S. government and military was constant. Little was done to stop it. In June 1978, Soviet writer Alexander Solzhenitsyn gave a speech at Harvard. He criticized the U.S. for not standing up to communism. His speech shocked America. The country was suffering from "post-Vietnam syndrome." It preferred to forget the war.

Meanwhile, American forces in Europe were neglected during the Vietnam War. They were expected to face the powerful Warsaw Pact with older weapons. The U.S. military faced a crisis after Vietnam. Morale was low, and there were racial tensions. New ways of recruiting were tried.

The Carter Administration saw the sudden end of Iran's monarchy. This monarchy was 2500 years old. In 1953, the CIA helped restore Shah Reza Pahlavi to power. He was seen as a U.S. ally for 25 years. He was called a "champion" of the free world. But he ran a police state. There were huge differences between rich and poor. A small, Westernized middle class lived in Tehran. But whole provinces lacked running water or electricity. Traditional ways of life continued there.

Before 1970, the U.S. limited weapons sales to its Middle Eastern allies. These were mainly Iran and Israel. This was to prevent an arms race. The Nixon Administration lifted these limits that year. The Shah bought expensive new military items. This included F-14 fighter jets. Defense officials worried Iran didn't need them. They also worried about sensitive information being compromised. Pahlavi said he needed the weapons to defend against Iraq. But in 1975, he signed a peace agreement with Iraq. Then both countries attacked the Kurds, who were also U.S. allies. The Shah owed his power to Washington. But he still joined other Middle Eastern states in raising oil prices in 1973.

The 2500th anniversary of the Iranian monarchy was celebrated in 1975. It was a huge, expensive event in a very poor country. Growing anger against the Shah erupted a few years later. Until 1979, the U.S. State Department believed that if the Shah was overthrown, it would be by the Soviet-backed Tudeh Party. People who knew Iranian society could have predicted the Islamic Republic. But few in the U.S. government knew enough.

The high point of Carter's foreign policy came in 1978. He helped mediate the Camp David Accords. This was an agreement between Egypt and Israel. It ended the state of war between them since 1967.

In 1979, Carter finished what Nixon started. He restored ties with China. Full diplomatic relations began on January 1. This was despite protests from Senator Barry Goldwater and other conservatives. Unofficial relations with Taiwan continued. Chinese leader Deng Xiaoping visited the U.S. in February 1979.

Carter also tried to limit the arms race with a SALT II agreement in 1979. He faced the Islamic Revolution in Iran. He also faced the Nicaraguan Revolution and the Soviet Invasion of Afghanistan. In 1979, Carter allowed the former Iranian Shah Mohammad Reza Pahlavi into the United States for medical treatment. In response, Iranian militants seized the American embassy. This started the Iranian hostage crisis. They took 52 Americans hostage. They demanded the Shah's return to Iran for trial. The hostage crisis lasted 444 days. It dominated the last year of Carter's presidency. It hurt his reputation for handling foreign affairs. Carter's responses, from staying in the White House to a failed military rescue, did not inspire confidence.

Images for kids

Electoral College 1964
Percent annual change in the US Consumer Price Index, a measure of inflation, 1952–1993
Line at a gas station, June 15, 1979.
Tens of thousands of local gasoline stations closed during the fuel crisis. This station at Potlatch, Washington was turned into a religious meeting hall.