Skip to main content icon/video/no-internet

IN 1976, JIMMY Carter, a peanut farmer and the former governor of Georgia, became the 39th president of the United States in the wake of the Watergate scandal when American trust in government was at an all-time low. In the election, Carter had challenged Republican Gerald Ford (1913–) who had succeeded to the presidency only two years before when Richard Nixon resigned after being identified as an “un-indicted coconspirator” in the Watergate trials. Carter won the election because he was an outsider with a “squeaky-clean” reputation who was not involved in the Washington political scene.

Carter's Department of Justice (DOJ) was heavily involved in policing government ethics in wake of the Watergate scandal. Griffin Bell, Carter's first attorney general, restructured DOJ to serve as a neutral legal entity to ensure that the department was not seen as a tool of the president as it had been under Nixon. Bell also worked with the Federal Bureau of Investigation and the Central Intelligence Agency to improve their efforts at catching whitecollar criminals and in polishing their agencies' tarnished images. Both Bell and Benjamin Civiletti who succeeded him were also involved in pursuing other white-collar criminals for crimes such as securities fraud and money laundering.

The Carter Presidency

In his Inaugural Address in January 1977, Carter promised the American people that his administration would be both competent and compassionate. He set out almost immediately to accomplish competency through reorganizing the executive branch of government and by reducing waste and inefficiency. While both inflation and the deficit did increase dramatically under Carter, he managed to contain unemployment. In a concentrated effort to control inflation Carter introduced an anti-inflation program that included: decreased federal spending, streamlining of the regulatory process, voluntary wage and price standards, and a tax-based incomes program. The press criticized Carter for not making more of an issue of the voluntary wage and price standards with the public by constant hammering about the importance of compliance. A Price Committee and a Pay Advisory Committee were created to bring business and labor into the effort to control inflation, but little was accomplished.

When Carter's first major effort at anti-inflation failed, he submitted another bill to Congress that contained: selective credit controls, a balanced budget, a gasoline conservation fee, monetary restraints, cuts in regulatory costs, and increased emphasis on wage and price controls. One of Carter's most successful appointments was also aimed at improving the economy. He chose Paul Volker as Chair of the Federal Reserve Board, a position that Volker held for eight years.

While Carter's outsider status was an asset as a candidate in the 1976 election, it was a drawback as president because he was unwilling to play the political games that are so much a part of being a successful politician. Carter always tried to do the “right thing,” and he honestly believed that members of Congress should do the same without having their egos stroked on a regular basis. As a result, even the Democrats, who controlled both houses of Congress, refused to back many of his proposals. Carter's efforts at establishing successful liaisons between members of his staff and Congress were also generally unsuccessful. Carter's dislike of pork barreling, the practice that allows members of Congress to win support for their own pet projects, was another constant source of irritation with Congress.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading