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25 2 White South Goes Republican
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so carter won a close victory in the
november election with large majorities
in congress
and he promptly put his peanut farm into
a blind trust to avoid
any possible conflict of interest so no
one would think
that they could you know get a favor out
of him by buying a bunch of peanuts
because he had no direct knowledge of
what was going on there and didn't
directly benefit
so democrats hoped that carter would
expand the new deal programs
or the great society programs but carter
was more moderate
organized labor felt abandoned by carter
and his conservatism after he declined
to lobby aggressively for modest labor
law reforms the president offered only
tepid support for a national health
insurance policy
which failed his lackluster support for
the humphrey hawkins full employment and
training act let republican and
democratic conservatives water down the bill
bill
to a purely symbolic gesture and at the
same time carter also came under fire
from the religious right which is a bit
unusual because he's a baptist sunday
school teacher
christian conservatives felt themselves
under siege from
liberalism that it was challenging all
of these kind of conservative ways of life
life
in 1978 the internal revenue service the
irs had established new rules revoking
the tax-exempt status
of racially segregated private christian schools
schools
and these rules only strengthened a
policy instituted by the nixon administration
administration
but the religious right accused carter
of singling out christian institutions
so carter is a christian himself that's
not what this is about
but it's a way to fight these policies
that are forcing
white southerners especially to
integrate their schools
by claiming it's a religious issue and
it's not really about race which kind of
makes it safer on the national level
republican activist richard vigary
described the irs controversy as the
quote spark that ignited the religious
rights involvement in real politics
rey sat just below the surface of this irs
irs
fight many of these private schools had
been founded to circumvent court-ordered
desegregation of public schools
if the white community couldn't
segregate public schools they would pull public
public
funding for schools and open private
white only schools instead
the so-called segregation academies and
because of this
several school districts counties even
whole cities were without public school systems
systems
sometimes for six to ten years during
this fight
over integrated public education
carter's enforcement of nixon statute
threatened the tax-exempt status of the
segregation academy so they claimed
this was a religious issue because
they're christian schools and they don't
want to admit that they're segregation
academies and the whole point has been
to keep black students out of their schools
schools
the new right criticized the ruling as a
big government attack on conservative
christians again
civil rights will be seen as this big
government threat how dare big
government make us treat everyone equally
equally
and they downplayed the racial exclusion
that lay at the heart of the case even
though the case was all about
racism carter became president in the
midst of an economic turmoil caused by those
those
oil shocks inflation stagnant growth unemployment
unemployment
and sinking wages so we've got those oil
shocks that have
seriously damaged the american economy
at the same time those nations that
hadn't been as competitive after world war
war
ii are now starting to compete with the
united states again and so
it were just not as competitive as as
the nation was
at the end of world war ii by 1970 the
us began to run massive trade deficits
the value of american exports dropped
while the price of its imports skyrocketed
skyrocketed
the massive cost of the vietnam war
which was largely put on a credit card
and the rise of opec didn't help so the
result of all of this is that carter
like ford before him
had to deal with the simultaneous onset
of inflation
and economic stagnation so we call this stagflation
stagflation
so inflation means that things are
costing more money so your money is
actually worth less
and economic stagnation means basically
the economy is not growing
things aren't getting better and
anything you do that will help one of
these problems will make the other one
worse unemployment reached 7.8 percent
in may of 1980
up from 6 and 77 and remember we want
unemployment to be between five and six
percent anything more than that we start
to get very nervous anything over seven
we're talking recession
inflation the rate at which the cost of
goods and services increases jumped from
six percent in 1978 to a staggering
20 by the winter of 1980. so that would
mean that if you had gone to buy
groceries you know a year before and you
went back in december about the exact
same number of groceries and types of things
things
it would cost you twenty percent more
but your paycheck is not twenty percent bigger
bigger
in fact because of economic stagnation
it's actually worth even less than that
so this is going to squeeze the american
family really tightly
carter responded to these challenges in
fundamentally conservative ways which is
really going to frustrate democrats who
would have preferred having a
stronger liberal in office first carter
proposed and got a tax cut for the upper
middle class in 1978
and taxes were still pretty high so that
could be considered
you know in line with democratic
policies second
carter deregulated the airline and
trucking industries which seems pretty
conservative today
and third carter proposed balancing the
federal budget much to dismay of
liberals who would have preferred that
he used deficit spending to fund a new
new deal so balancing the federal budget
that was hoover's idea
during the great depression that if you
could balance the federal budget that it would
would
you know spur confidence in the economy
finally to halt inflation carter appointed
appointed
chair of the federal reserve paul
volcker who raised interest rates
and tightened the money supply now that
is going to slow down the growth of the
economy and we already have economic
stagnation so we're going to make that worse
worse
but those policies were designed to
reduce inflation in the long run
but because they're going to make the
economy worse in the short run they're
going to increase unemployment so it is
tough medicine but it's basically the
only thing we know to do with stagflation
stagflation
we still don't have a good solution for
that economic problem
but if you take this hard medicine after
a couple of years it will begin to turn around
around
in a nationally televised speech on
energy policy on july 15
1979 carter discussed a crisis of
confidence in the united states
now oddly enough his speech has come to
be known as the malaise
speech even though he never uses that
word in the speech
he sidesteps deeper questions of
large-scale economic changes that are actually
actually
causing the economic problems the nation
was seeing
in 1976 carter had touted the misery
index the addition of the unemployment
rate to the inflation rate as an
indictment of republican rule
and yet carter was failing to do any
better against stagflation it's a tough
problem to fix so it's easy to blame the
person in the white house for it
it's much harder once you are the person
in the white house to fix
it so take a moment and go listen to
carter's short malay speech he
his background as a sunday school
teacher will surely come through
and then move on to the final clip of
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