Former President Jimmy Carter died Sunday at the age of 100. While in office, Carter led the country through challenging times that included economic turmoil, the bailout of a legacy automaker and an energy crisis.
Carter — elected 39th President of the United States in 1976 — leaves behind a legacy of diplomacy and humanitarian work. During Carter's presidency, the nation weathered tough economic conditions including rising inflation and high interest rates which contributed to his defeat in 1980.
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Inflation: According to data from the U.S. Bureau of Labor Statistics, Carter's administration saw the highest average year-over-year inflation rate of all U.S. presidents, at 9.9%. By the end of his presidency, inflation had surged to more than 13%.
Carter appointed Paul Volcker as chairman of the Federal Reserve Board in 1978 to combat the rising inflation. Volcker enacted a policy of dramatically increasing interest rates to slow economic activity and curb rising prices. This led to consumer loan interest rates as high as 18% by 1980, per the Bill of Rights Institute.
The combination of inflation and high interest rates led to "stagflation." It also pushed the economy into a recession as Carter ran for reelection in 1980. Ultimately, Carter lost the election to former President Ronald Regan.
Chrysler: In 1980, Detroit automaker Chrysler was on the verge of bankruptcy as the country faced high unemployment and economic stagnation. To avoid job losses and further damage to the economy, Carter signed the Chrysler Corporation Loan Guarantee Act on Jan. 7, 1980, which provided $1.5 billion in loan guarantees, as reported by NPR.
The Chrysler loan guarantee rescued the company from bankruptcy, stabilized the auto industry and saved thousands of jobs. This marked a shift toward more direct government involvement in the economy.
The Carter administration faced criticism from opponents of the Chrysler bailout. And Chrysler eventually filed for bankruptcy in 2009. It was bought by Fiat later that year.
Fiat Chrysler Automobiles N.V. repaid $12.5 billion of Chrysler's government loans and was renamed Stellantis N.V. STLA which continues to operate today.
Energy Crisis: Carter also led the U.S. through a major energy crisis during his term in office. The Iranian Revolution in 1979 led to a significant drop in global oil production. Oil prices spiked from $13 per barrel in mid-1979 to $34 per barrel in mid-1980, according to the Center for Global Energy Policy.
Drivers waited in long lines at gas stations amid fuel shortages in the summer of 1979 and Carter responded with calls for energy conservation and alternative energy development.
"Our decision about energy will test the character of the American people and the ability of the president and the Congress to govern. This difficult effort will be the ‘moral equivalent of war' — except that we will be uniting our efforts to build and not destroy," Carter said in a speech on the energy crisis.
He encouraged energy conservation and efficiency and created the Department of Energy to centralize energy policy. Carter's focus on energy efficiency led to improvements in household appliances, with programs like the Appliance Standards Program, and his emphasis on renewable energy laid the groundwork for future developments in solar and other alternative energy sources.
Carter even had 32 solar thermal panels installed on the White House roof to underscore the administration’s commitment to renewable energy and reduce reliance on fossil fuels.
When the panels were unveiled, Carter predicted renewable energy would be critical to the future of the United States.
By 1986, under the Reagan administration, the solar panels were removed and funding for renewable energy initiatives were significantly reduced.
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