Carter's Domestic Policies

1
Carter's Domestic Policies

• Elizabeth von Haunalter
• Period 3

2
Key Terms

• Prime Rate
• Fiscal Conservatism
• Zero-based Budgeting
• PBJI
• Double Digit Inflation
• NHI

3
Outline

• I. Introduction
• II. Fiscal Conservatism
• III. Economic Downfall
• IV. Political Divisions
• V. Energy Crisis
• VI. Other Carter Policies
• VII. Summary

4
Introduction

• Governor in Georgia previously
• Much of his cabinet made up of Georgian
  politicians
• Elected under premise that he would Never tell a
  lie. Promoted frugality and was
  anti-establishment.
• Economy already in a downturn when elected.
• Watergate Scandal had just occurred. Many
  citizens felt bitter towards government

5
Fiscal Conservatism

• Carter had little congruence to his policies,
  except regarding his budget.
• He was a fiscal conservative, meaning he did not
  believe in big government spending nor deficits.
• Consistently favored fiscal conservatism over
  social or political justice.
• Ex When agriculture was struggling, Carter chose
  to keep a balanced budget at price of farmers.
  Wanted to put in a support on products that was
  even lower than existing prices.

6
Fiscal Conservatism

• Zero-based Budgeting every fiscal year,
  budgets rebuilt from zero without expectation of
  funding increases.
• PBJI Program for Better Jobs and Income.
• Basically a welfare reform act. Failed to achieve
  its goals and repealed within ten months. Carter
  could not please the people without increasing
  government spending.

7
Economic Downfall

• Unemployment in 1976 8. In 1978 6. In 1979
  9
• 34 Million tax reduction for corporations
• Focused on prices and wages to help economy
• Inflation near 20 in 1980. Throughout Carter's
  time in office, inflation was consistently in
  double digits. Termed Double-digit inflation
• Housing and automobile markets crashed
• Prime Rate interest rate of the banks best
  customers- rose to nearly 20 during Carter
  administration

8
Political Divisions

• Carter was anti-establishment. He criticized the
  IRS and federal bureaucracy.
• Carter promised to curb federal spending- yet was
  part of the Democratic party who believed in
  increased spending to help the economy.
• Much of Congress was newly elected when Carter
  cameto office. That, combined with Carter's
  professed dislike of big government and
  persistent failure to consult with the
  Congressmen on important issues, created a weak
  relationship between the legislative and
  executive branches of government

9
Political Divisions

• Carter had a hard time getting his many of his
  bills passed.
• Example National Health Initiative (NHI) was a
  national health care bill. It failed to pass
  after disagreements within Congress
• There were also divisions within the Democratic
  Party over welfare (Entitlement vs. New Deal
  policies). One reason why the welfare bill was a
  failure.
• After receiving advice that he should rethink
  his administration Carter fired five key cabinet
  members. Began to rely even more heavily on his
  circle of Georgian officials.

10
Energy Crisis

• There was a severe energy crisis already brewing
  when Carter came into office. Shortages and
  rising oil prices led to energy riots.
• Carter believed conservation and alternative
  energy was key. Tried to pass bill with gas
  taxes, incentives for conservation, etc. but only
  got a gas guzzler tax passed.
• Critics saw this as the administration giving in
  to big oil and increasing inflation while not
  reducing dependence on foreign oil.

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Other Policies

• Carter put 1.6 billion towards cleaning up toxic
  wastes.
• Signed bill preserving 100 acres of Alaskan land
• Pardoned 10,000 draft evaders- mixed response
• Rescinded 19 water projects from national budget.
  Alienated Congressmen and showed Carter was
  hapless with budget cuts
• Reorganized Social Security to avoid bankruptcy
• Created separate Department of Energy

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Summary

• At end of term, Carter's approval rating was
  lower than that of Nixon's during Watergate
  Scandal
• Carter had no overarching vision or definition to
  his policies. The effect was that he pleased no
  one he appeared contradictory.
• Created divisions, even within his own government
• Carter's term was marked with inflation,
  unemployment, and energy crises.

13
Summary

• Failed to enact his agenda or achieve his
  promises.
• Promised to curb federal spending, but 60
  billion deficit by end of his term
• Alternative perspectives Hargove- non-political
  politician. Carter was not appreciated in his
  time. Jones- trustee president. Carter was
  willing to sacrifice his political image for the
  good of the people.
• Restored faith in the integrity of American
  politics, failed president Randall Woods