Changes

The 1970s saw a series of severe political and economic problems that convulsed much of the United States. Richard Nixon became the first president to resign in office, Gerald Ford became the first unelected president, and Jimmy Carter appeared unable to cope with increasing problems. Fallout from the Vietnam War and Watergate scandals disrupted public trust in government while two oil shocks and outsourcing caused tremendous shocks to the economy.

In November 1976 Democratic Governor of Georgia Jimmy Carter defeated Ford in a surprisingly tight race. Carter came to the Presidency with the promise of never lying to the American people. Carter aimed to elevate human rights to the top of his agenda and sought a series of new agreements with the Soviet Union. However, Carter's vision was largely crushed by reality. The economy remained weak and deficit spending and the end of the peg of the U.S. dollar to gold led to massive inflation and slow growth, referred to as Stagflation.

Foreign policy realities began to weigh on American policy. American ally Shah Reza Pahlavi was overthrown and replaced by a hardline Islamic fundamentalist government in 1979. Oil shipments to the United States again slowed, leading to a second shortage and price hike. The Islamic Republic of Iran took Americans hostages from the U.S. embassy and held them for over a year. Later that same year, the Soviet Union invaded Afghanistan to prop up a puppet communist regime. The Soviets benefited from the stark rise in oil prices, and in 1980 became the world's largest oil producer. As the Soviets were awash in cash and increasingly aggressive, President Carter appeared lost and without control.<ref>Dumbrell, John, ''The Carter Presidency: A Re-Evaluation.'' Manchester and New York: Manchester University Press, 1995. Page 188.</ref>