The recent Presidential scandals resulted in a number of comments referring to Jimmy Carter as our moral, but ineffective, President. I strongly object to the limitation. In fact, he was one of our most effective presidents in that his programs are largely responsible for the economic successes during the terms of succeeding Presidents including the incumbent. A review of the various biographies and memoirs of President Carter will show that on February 18, 1977, about a month after his inauguration, he spoke to the American people outlining a program designed to lessen our dependence on foreign oil. The nation was at that time suffering runaway inflation due to energy price increases started by OPEC and followed by the domestic suppliers. Two days later, exactly one month after his inauguration, he presented his energy plan to Congress. After two years of conflict with vested interests, through their legislators, an acceptable program was signed into law. It included many conservation initiatives such as mandatory reductions in gasoline mileage, efficient appliances, expansion of daylight saving, and the 55-mile speed limit. The plan introduced alternative energy programs and pollution control laws that actually reversed the growth of air pollution. Although that fight is not yet won.
Energy prices drive the prices of all goods and services. The oil price increases resulted in the inflation that is often inaccurately blamed on Carter. Their decline is responsible for the subsequent lowering of the inflation rate for which he should be given credit. In the early 70's oil was at $13/bbl, and by 1980, just two years after Carter's energy program became law, they peaked at $70/bbl, and then plunged due to an oil glut which resulted from excessive drilling by eager oil producers into a declining market that resulted from Carter's conservation program. By the mid 80's the price had settled at about $20/bbl where it has remained.
At that time the energy experts at SRI International predicted that the glut would stabilize prices until the millennium. What do you know? This trend has continued to the very low prices of less than $12/bbl that is below where it all started in the 70's. The long term increases of energy prices are actually less than inflation in that in 1944 I worked in a service station selling $0.18/gal gas for a wage of $0.75/hr. In January 1999 the attendant earned at least the minimum wage of $5.75 selling $1/gal gas. So in my one man economic survey covering 54 years energy prices have risen 5.15 times and wages 7.67.
How have Carter's accomplishments been responsible for the decline of inflation, and the current good economic environment, the super bull on Wall Street, and even the vanished deficit? All prices depend upon energy in a very fundamental way. Thus, as energy prices fell so did inflation. Of course, the multitrillion deficit of the 80's and early 90's were a factor. What family would not live high on a credit card binge? The Mexican financial crisis and their resultant need to produce oil regardless of price was important in recent years. The Federal Reserve's insistence on high interests to control prices was also important. When the working class has to pay rates amounting to usury to buy transportation and housing they cannot buy much else. Why is it that the affluent insist on controlling prices and protecting their fortunes by generating misery for those with less through high interest and engineered high unemployment? Still, energy prices are probably the most important factor. How else can we explain that the economy refuses to slow with the demon of low unemployment, the Asian financial crises, the Wall Street semi crash, and decreases in interest rates? Last year the inflation rate was the lowest in decades. Thank you President Carter.
Why is it that Carter is considered, in the words of Time Magazine and others, an ineffective President when he is responsible for the promotion of the general welfare that we experience today? Isn't that the reason the Preamble to the Constitution says we started the whole thing in the first place? Carter is blamed for the Iranian embassy capture, but that was no way near the disasters of the Viet Nam War and the death of hundreds of Marines in Lebanon. These do not seem to be as devastating to other President's reputations. He should also be given credit for the Middle East Peace Talks. As my friend Fr. Lance Tillman says, "He suffered from the politically fatal diseases of honesty and integrity." I think that Carter's failure was not as President, but as Public Relations Representative. He was a great President, but a lousy spin doctor.