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Line 157:
Line 157: − + + + − [[Image:001carter.jpg|thumb|250px|left|President Carter during White House Press Conference.]]Carter inherited a [[recession]] when taking office. First he tried to reduce unemployment by both increasing government spending and cutting [[tax]]es. However, when [[inflation]] skyrocketed in 1978 he changed his mind. He delayed tax cuts and vetoed the spending programs that he himself proposed to the [[Congress]]. Carter then tried to ease inflation by reducing [[money]] supply and raising [[interest rates]]. All of his efforts proved to be unsuccessful. Inflation and interest rates soon reached their highest levels since [[World War II]].+ − −
→Economic Crisis: Totally not true. The 173-74 recession ended two years earlier. Carter inherited a good recovery, left with a double dip recession.
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=== Economic Crisis ===
=== Economy and budget ===
[[Image:001carter.jpg|thumb|250px|left|President Carter during White House Press Conference.]]
Carter increased government spending. However, when [[inflation]] skyrocketed in 1978 he changed his mind. He delayed tax cuts and vetoed the spending programs that he himself proposed to the [[Congress]]. Carter then tried to ease inflation by reducing [[money]] supply and raising [[interest rates]]. All of his efforts proved to be unsuccessful. Inflation and interest rates soon reached their highest levels since [[World War II]].
The rapid change in interest rates led to disintermediation of bank deposits, which sowed the seeds of the Savings and Loan crisis. Investments in fixed income were becoming less valuable. Holders of both bonds, and pensions being paid to retired people had their life savings wiped out. The stagnant growth of the economy (causing unemployment), in combination with a high rate of inflation, has often been called stagflation, an unprecedented situation in American economics. By 1979, public opinion polls had Carter's popularity lower than [[Richard Nixon]]'s during Watergate, partly because of his inexperience and difficulties working with [[Congress]].
The rapid change in interest rates led to disintermediation of bank deposits, which sowed the seeds of the Savings and Loan crisis. Investments in fixed income were becoming less valuable. Holders of both bonds, and pensions being paid to retired people had their life savings wiped out. The stagnant growth of the economy (causing unemployment), in combination with a high rate of inflation, has often been called stagflation, an unprecedented situation in American economics. By 1979, public opinion polls had Carter's popularity lower than [[Richard Nixon]]'s during Watergate, partly because of his inexperience and difficulties working with [[Congress]].
=== Energy Crisis ===
=== Energy Crisis ===