The massive inflation and oil crisis of the 1970s damaged Jimmy
Carter's presidency. In
Jimmy Carter's Economy, Carl Biven
traces how the Carter administration developed and implemented
economic policy amid multiple crises and explores how a combination
of factors beyond the administration's control came to dictate a
new paradigm of Democratic Party politics.
Jimmy Carter inherited a deeply troubled economy. Inflation had
been on the rise since the Johnson years, and the oil crisis Carter
faced was the second oil price shock of the decade. In addition, a
decline in worker productivity and a rise in competition from
Germany and Japan compounded the nation's economic problems. The
resulting anti-inflation policy that was forced on Carter included
controlling public spending, limiting the expansion of the welfare
state, and postponing popular tax cuts. Moreover, according to
Biven, Carter argued that the ambitious policies of the Great
Society were no longer possible in an age of limits and that the
Democratic Party must by economic necessity become more
centrist.