Through Ford’s and Carter’s terms, a severe economic downturn took place. During Ford’s term, the worst economy since the Great Depression occurred due to unemployment and inflation. It continued in a state of stagflation through Carter’s term.
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Whip Inflation Now - When Ford took office, one of his primary concerns was the economy. He believed that the main cause of the unsteady economy was inflation, which was over twelve percent at the time, rather than rising unemployment, as his administration believed that controlled inflation would curb unemployment. In October 1974 the President started the Whip Inflation Now (WIN) campaign to call for the American public to reduce spending and consumption to attempt to stop high inflation. Americans would send in forms stating that they would “enlist” as inflation fighters and would receive WIN buttons in return. Over the course of nine days 101, 240 Americans sent in WIN forms. The campaign was ridiculed as a public relations gimmick that was unable to solve any of the issues brought up. The campaign was eventually seen as a failure as the United States went into the worst recession since the Great Depression, and the United States shifted its economic focus to stopping unemployment.
Tags: Economic, Political, Social
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Early 1980s Recession - During the first half of Carter’s term, the economy continually recovered from the recession during Ford’s term, with recovery in unemployment, business investment, and sales. However, the 1979 energy crisis caused a rise inflation and interest rates as growth and consumer confidence declined. Consequently, Carter tried to use an austerity program and credit control measures to control inflation. However, the policies and record interest rates led to a sharp recession in the spring of 1980. After the start of the recession, Carter phased out credit controls in May, and subsequently inflation fell to under 13% for the rest of the year. However, the recession happened too close to Carter’s reelection campaign, and was a major cause of Carter’s loss.
Tags: Economic, Political, Social
Artifacts:
2) Whip Inflation Now (Physical Button)
3) Early 1980's Recession (Graph)
2) Whip Inflation Now (Physical Button)
3) Early 1980's Recession (Graph)