Changes

Oil prices were also a major concern. Congress turned down Ford's proposals for phasing out the federal ceilings on the price of most domestic oil. Senate Majority Whip, the Exalted Cyclops [[Robert Byrd]] (D-West Virginia) explained why Democrats rejected Ford's plans: "After all, he doesn't have a national constituency, his is an inherited Presidency." Ford and Congressional Democrats finally reached a compromise with the Energy Policy and Conservation Act of 1975. "Half a loaf was better then none, so I decided to sign it," Ford explained.  

Oil prices were also a major concern. Congress turned down Ford's proposals for phasing out the federal ceilings on the price of most domestic oil. Senate Majority Whip, the [[Exalted Cyclops]] [[Robert Byrd]] (D-West Virginia) explained why Democrats rejected Ford's plans: "After all, he doesn't have a national constituency, his is an inherited Presidency." Ford and Congressional Democrats finally reached a compromise with the Energy Policy and Conservation Act of 1975. "Half a loaf was better then none, so I decided to sign it," Ford explained.  

The initial goodwill toward Ford steadily eroded as the numbers turned sour.  Unemployment went from 4.8% in 1972 to 8.0% when he took office; consumer price inflation jumped from 3.4% to 11.0%.  Unexpectedly high inflation, fueled by soaring oil prices, made it difficult to plan for the future; cheap imports from Germany and Japan for the first time became a threat to autos and electronics; high unemployment troubled industrial areas.  By early 1975 the jobless rate was the worst since the [[Great Depression]]. Ford insisted that inflation was the greater problem. He sought to slow it, as Nixon had, by severe restraints on government spending for social programs. He also tried to curb private spending by asking Congress to raise the taxes on personal incomes. But the Democratic majority refused, and in congressional elections in November 1974 Democrats increased their majorities to three-fifths in the Senate and two-thirds in the House. In January 1975 Ford finally yielded to liberals' demands for a program to stop the economic slump and promote hiring. He proposed personal [[income tax]] rebates, especially to higher-income people, who might spend extra money on durable goods such as automobiles. Liberals criticized Ford's proposal for offering little relief for the poor, so they pushed through Congress a modified, though modest, tax rebate bill favoring lower-income people. Ford signed it reluctantly. He continued to resist liberal demands for massive public works spending to employ the jobless, and vetoed many bills.

The initial goodwill toward Ford steadily eroded as the numbers turned sour.  Unemployment went from 4.8% in 1972 to 8.0% when he took office; consumer price inflation jumped from 3.4% to 11.0%.  Unexpectedly high inflation, fueled by soaring oil prices, made it difficult to plan for the future; cheap imports from Germany and Japan for the first time became a threat to autos and electronics; high unemployment troubled industrial areas.  By early 1975 the jobless rate was the worst since the [[Great Depression]]. Ford insisted that inflation was the greater problem. He sought to slow it, as Nixon had, by severe restraints on government spending for social programs. He also tried to curb private spending by asking Congress to raise the taxes on personal incomes. But the Democratic majority refused, and in congressional elections in November 1974 Democrats increased their majorities to three-fifths in the Senate and two-thirds in the House. In January 1975 Ford finally yielded to liberals' demands for a program to stop the economic slump and promote hiring. He proposed personal [[income tax]] rebates, especially to higher-income people, who might spend extra money on durable goods such as automobiles. Liberals criticized Ford's proposal for offering little relief for the poor, so they pushed through Congress a modified, though modest, tax rebate bill favoring lower-income people. Ford signed it reluctantly. He continued to resist liberal demands for massive public works spending to employ the jobless, and vetoed many bills.