https://historicalreview.yale.edu/sites/default/files/files/mirzadegan.pdf
NIXON’S FOLLY
THE WHITE HOUSE AND
THE 1970S OIL PRICE CRISIS
AMIN MIRZADEGAN
41
“I will do everything I can to hold down the price of foreign oil. The American
people cannot aford to pay such prices, and I can assure you that we will not have to pay
them.”1
President Richard Nixon’s address from the White House about the national energy
crisis on January 19, 1974 called upon millions of Americans to have faith in their
president’s eforts to curtail the skyrocketing price of oil and end its ravaging of the American
consumer’s wallet. Just a few weeks earlier on October 20, 1973, the Organization
of Petroleum Exporting Countries (OPEC) had declared an oil embargo on America and
much of the Western world while also instating massive production cuts that quadrupled
the price of oil by 1974.2
Nixon’s eforts to hold down oil prices were ultimately futile: by
the time he lef ofce in August 1974, prices were still 215 percent above the pre-embargo
level, even though the embargo ended in March 1974.3
Oil prices continued to increase
from 1974 to 1978, rising by 18 percent during President Gerald Ford’s time in ofce.4
There were, of course, limits on the extent to which the president could control foreign oil
prices. But did Nixon and Ford do everything in their power to attempt to lower prices?
This paper will argue that Nixon’s claim that he would do anything he could to decrease
oil prices was disingenuous and that he did not in fact consider lowering oil prices an immediate
strategic objective. Internal correspondence and meeting records from the Ford
Memoranda of Conversations show that the White House carefully weighed the value of
pressuring Iran to lower oil prices against the benefits of maintaining strong relations with
Iran for the sake of fighting c*******m in the Middle East.
Nixon and Ford, along with Secretary of State Henry Kissinger, possessed the power
to exert pressure on the Shah and fight the oil price increases from 1974 to 1976. Yet
both administrations abstained due to political calculus: to them, the value of maintaining
positive relations with the Shah of Iran outweighed the adverse economic efects of higher
oil prices. These men believed that a short-term increase in oil price was a necessary trad
https://estore.archives.gov/Carter/ProductInfo/C1008.aspxJimmy Carter inherited a deeply troubled economy. The "great inflation" that is associated with his presidency in fact began in the latter part of 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.
These economic pressures created a crisis of political identity for the Democratic Party, moving it toward the political center. Full employment, the traditional priority of Democratic policy, requires an activist government willing to increase public spending and cut taxes. The anti-inflation policy that was forced on Carter by the economic realities of the day 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. Although he faced severe criticism during his term, says Biven, Carter accurately perceived the changed fiscal landscape and the need for a shift in Democratic policy.
https://www.cnn.com/2014/10/27/world/ac-six-things-you-didnt-know-about-the-iran-hostage-crisis/index.html4) The hostages were released only after President Reagan was sworn in.
Ted Koppel described this as the Iranians' last act of cruelty toward President Carter. Even though the United States and Iran had come to an agreement to free the hostages in December, the Iranians waited literally until the hour President Reagan was sworn in before allowing the plane with the hostages to take off. The Iranians had a deep hatred of Carter and wanted to deny him this last moment of victory as President.
. (