13. Draw evidence from unemployment statistics and economic appraisals of the Ford and Carter administrations to address such questions as:
? What factors contributed to the high inflation rates in the 1970s?
? What factors contributed to the high unemployment of the period?
? How did Presidents Ford and Carter attempt to deal with the problem of "stagflation"?
? What political factors underlined their approaches?
? Were their programs successful? Why or why not?
 

Numerous factors had led to the high inflation rates in the 1970’s.  The war effort towards Vietnam had left the United States greatly in debt and in turmoil.  Another major factor was the situation with foreign oil companies.  The Nation's dependence on foreign oil imports increased even as the energy crisis eased and gasoline supplies became relatively plentiful.  Oil imports had climbed modestly from 35.4 percent in 1974 to 35.8 percent in 1975, but oil imports accounted for 40.6 percent of the United States’ supply in 1976 and an alarming 46.5 percent in 1977.  Meanwhile, domestic oil production declined slightly.  In addition, natural gas supplies remained precarious, and the threat of serious shortages loomed in the future.
 Therefore, energy had remained a main priority in the midst of the Ford Administration.  Citing the need for a national energy plan, President Ford called for decontrol of domestic oil prices.  Price controls had been imposed by Nixon in 1971 and extended by Congress in 1973 and 1974.  Ford had also asked for an increase in fees on imported oil and a comprehensive program of conservation taxes to reduce consumption.
On January 31, 1975, Ford sent to Congress a proposed thirteen-part Energy Independence Act. Following nearly a year of deliberation, Congress had agreed to produce the Energy Policy and Conservation Act.  The act continued price controls on domestic oil into 1979, created federal fuel economy standards for new automobiles, and authorized the creation of a one-billion-barrel strategic petroleum reserve.  Describing the act as “by no means perfect,” Ford stated that it did provide a foundation upon which the United States could build a more comprehensive program.  The time had come, he added, to end the long debate over national energy policy.
President Carter had also played an important role in working hard to combat the continuing economic problems, dealing with both inflation and unemployment.  By the end of his administration, he could claim an increase of nearly eight million jobs and a decrease in the budget deficit, measured in percentage of the gross national product.  However, inflation and interest rates were at near record highs, and efforts to reduce them caused a short recession.
Carter could point to a number of achievements in domestic affairs. He dealt with the energy shortage by establishing a national energy policy and by decontrolling domestic petroleum prices in order to stimulate production.  He prompted Government efficiency through civil service reform and proceeded with deregulation of the trucking and airline industries.  Carter also sought to improve the environment.  His expansion of the national park system included protection of 103 million acres of Alaskan lands.  To increase human and social services, he created the Department of Education, bolstered the Social Security system, and appointed record numbers of women, blacks, and Hispanics to Government jobs.  His programs, which intended to bring about a better economy, were proven quite successful.