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Carter Takes On An Economic Nightmare

1298 words - 5 pages

IntroductionWhen Carter entered presidency, he was faced with many problems within his first two months until the very end of his presidency. The main preoblems Iwish to focus on are as follows: The rise of unemployment, The increase ofinflation, and the energy crisis.All of these problems were very difficult to handle, because each of themwere linked in one way or another to each other. The way Mr. Carter handledthese things were indeed the reason he was beaten out of office in 1980 byReagan and Bush.Many of the domestic problems were ignored by Carter at first, because afocus on foreign affairs was being established. Within a short period of timepeople were complaining that he was 'too heavily occupied with foreign affairs'.They claimed that he was neglecting the increasingly seriou domestic problems,particularly unemployment, inflation, and energy, although there were othereconomic problems at the time as well.The Reason's for the Economy's ConditionThere were several reason's for the economy's situation.As I stated earlier, all three of these problems are linked. One influencingboth of the others, and vice versa. It was almost as though one small economic flaw created a much larger problem in many other areas.We could say that the recession of 1972 was the main cause, because that was a period of time in which the nation never really recovered from up to Carter's presidential term.When Carter entered office, he entered it while the nation was on adownslide. This resulted in somewhat of a snowball effect, and happened morerapidly because Carter had not had plans of solving individual problems uponentering his presidency. The snowball effect happened as the unemployment went up. This caused lack of gasoline and other resources. The two of these in turncaused an uprising of the already present inflation.'The synfuels program would also have enormous social and environmental costs. Major adverse impacts would be felt on both the domestic level as well as on trade.' -EDF Column 'energy crisis'That statement was made referring to synthetic fuels program as analternate, which would cut the demand for gasoline, but still have an effect on other areas of the economy.As you can see, during this time period, these problems were alreadypresent, but certainly not as out of control as they later became; therefore, we can say that each problem caused one another to heighten up to the point where they were very severe.Carter's SolutionsCarter made a desperate attempt to put an end to all of these problemsbefore it would take even more drastic measures for a solution.In an attempt to take on unemployment, which was one of the first thingsCarter tried to battle, he sent Congress a plan designed to stimulate theeconomy and to provide more jobs. The plan called for fifty dollar rebate on1976 taxes for every American citizen. He also wanted tax cuts to encouragebusiness to increase capital investments. This would then open newemployment opportunities.This plan to...

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