AP Syllabus focus:
‘Trust in government declined in the 1970s amid economic problems, political scandals, and foreign policy crises.’
The 1970s Crisis of Confidence emerged as Americans confronted economic stagnation, political scandal, and foreign policy setbacks, eroding trust in government and reshaping national debates about leadership.
The Roots of Declining Public Trust
Multiple developments converged to undermine Americans’ long-standing faith in political institutions. Economic turbulence, presidential abuses of power, and international instability created persistent uncertainty.
Economic Disruption and Stagflation
During the 1970s, the United States faced stagflation, a rare condition of simultaneous inflation and unemployment.
This graph depicts U.S. economic growth, inflation, and unemployment from the early 1970s through the 1980s. The mid-1970s rise in both inflation and unemployment illustrates the stagflation that undermined confidence in federal policy. The chart continues beyond 1980 and includes a growth line, providing additional but relevant context on how economic instability evolved. Source.
Stagflation: A combination of high inflation and high unemployment occurring at the same time, defying conventional economic expectations.
A series of economic pressures intensified this trend:
Oil shocks in 1973 and 1979 raised energy prices and slowed production.
Rising global competition cut into U.S. manufacturing strength.
Federal spending from the Vietnam War and Great Society reforms contributed to persistent inflation.
These factors weakened consumer confidence, strained family budgets, and generated new skepticism about the government’s ability to manage the economy effectively.
The Energy Crises and Policy Failures
Oil embargoes by the Organization of Petroleum Exporting Countries (OPEC), particularly the 1973 embargo following U.S. support for Israel, exposed U.S. dependence on foreign energy. Gas lines, fuel rationing, and price spikes dominated daily life.
Political leaders debated solutions, but none provided immediate relief. Efforts included:
Calls for conservation and reduced consumption.
New federal agencies such as the Department of Energy.
Proposals for alternative fuels and strategic reserves.
Public frustration grew as official responses appeared fragmented and inconsistent, reinforcing perceptions of governmental ineffectiveness.
Political Scandals and the Erosion of Authority
Political legitimacy suffered severe blows during the decade, particularly through high-profile abuses of power.
Watergate and Its Aftermath
The Watergate scandal became a defining symbol of political corruption.
This cartoon portrays President Richard Nixon struggling as water floods the Oval Office, symbolizing the growing Watergate revelations engulfing his administration. The imagery highlights how scandal eroded trust in government. The symbolic elements go beyond syllabus requirements but reinforce the decline in public confidence. Source.
Executive privilege: The assertion that the president may withhold information from other branches of government to preserve confidentiality or national security.
Congressional investigations, media scrutiny, and Supreme Court rulings forced the release of incriminating tapes, culminating in President Richard Nixon’s resignation in 1974.
The scandal intensified public doubts about honesty in government, prompting:
New campaign finance regulations.
Stronger oversight of intelligence agencies.
Renewed insistence on transparency and accountability.
In the years following Watergate, Americans across the political spectrum described a profound loss of confidence in elected officials.
The Ford and Carter Presidencies
President Gerald Ford’s decision to pardon Nixon aimed to heal national divisions but instead fueled accusations of political favoritism. Although Ford worked to restore trust, the economic downturn limited his effectiveness.
Jimmy Carter entered office in 1977 promising integrity and moral leadership. Yet economic instability, bureaucratic challenges, and foreign policy crises—most notably the Iran Hostage Crisis—undermined his administration’s credibility.
This photograph shows two American hostages with their hands on their heads under guard during the Iran Hostage Crisis of 1979. It conveys the severity of a foreign policy crisis that dominated U.S. media and public consciousness. The image includes additional detail beyond syllabus requirements but deepens understanding of how the crisis strained confidence in national leadership. Source.
Public perception increasingly painted government as unable to address urgent national problems.
Foreign Policy Crises and Global Uncertainty
International events further strained American confidence in national direction.
The End of the Vietnam War
The fall of Saigon in 1975 intensified national reflection on the limits of American military power. Many questioned whether policymakers had misled the public during the conflict.
Shifting Cold War Dynamics
Detente with the Soviet Union raised hopes for stability, but renewed tensions—particularly the Soviet invasion of Afghanistan in 1979—revived fears about national security. Americans saw inconsistencies between diplomatic rhetoric and international outcomes.
The Iran Hostage Crisis
When Iranian revolutionaries seized the U.S. embassy in Tehran and held 52 Americans hostage for 444 days, the crisis captured national attention. Failed rescue attempts deepened public frustration and symbolized perceived governmental helplessness.
Cultural and Political Consequences
Eroding trust affected the way Americans viewed leadership, institutions, and national purpose.
Rise of Cynicism and Institutional Critique
Polls throughout the decade showed declining confidence in:
The presidency
Congress
Corporations
The media
Americans increasingly questioned the motives and competence of political elites. Popular culture reflected this disillusionment through investigative journalism, political thrillers, and social commentary that highlighted corruption or incompetence.
Shifts in Political Ideology
The crisis of confidence helped reshape political debates. Critics of federal power argued that government intervention produced inefficiency, waste, and dependency. These views supported growing conservative movements that demanded:
Reduced federal regulation
Lower taxes
Stronger national defense
Restoration of traditional values
This ideological shift contributed directly to the political changes that defined the late 1970s and early 1980s, setting the stage for new leadership and transformed expectations of government performance.
FAQ
Many households faced reduced purchasing power, forcing changes in consumption habits such as buying smaller cars, cutting discretionary spending, or delaying home improvements.
Long queues at petrol stations during oil shortages created visible reminders of economic vulnerability.
Families increasingly turned to part-time work, couponing, and budgeting tools as a way to cope with financial instability, contributing to a broader sense of national anxiety.
Different political factions disagreed over the causes of inflation, with some blaming excessive federal spending and others pointing to supply shocks or wage–price dynamics.
Several administrations experimented with contrasting policy tools, including wage and price controls, deregulation, and energy conservation initiatives.
The absence of consensus created inconsistent strategies, reinforcing public perceptions that leaders lacked a coherent plan.
Television and investigative journalism highlighted political scandals and economic distress more rapidly and vividly than in previous decades.
Continuous reporting on issues such as fuel shortages or the hostage crisis amplified the sense of ongoing dysfunction.
The emergence of more adversarial journalism encouraged scepticism toward official statements, reshaping expectations of transparency and accountability.
Candidates increasingly emphasised personal honesty, moral integrity, and distance from Washington insiders as key campaign themes.
Voters began judging leaders not only by policy outcomes but by perceived authenticity, humility, and decisiveness.
This shift laid groundwork for later political messaging that framed government as inefficient or overly intrusive.
The period contributed to the rise of a more distrustful, issue-driven electorate willing to shift party allegiances based on performance rather than tradition.
Key developments included:
• Greater scrutiny of executive power
• Growing appeal of outsider candidates
• Strengthening of conservative arguments for limiting federal authority
These trends shaped debates well into the 1980s and beyond, influencing attitudes toward taxation, national security, and economic intervention.
Practice Questions
Question 1 (1–3 marks)
Identify and briefly explain one factor from the 1970s that contributed to the decline in Americans’ trust in the federal government.
Question 1
• 1 mark for identifying a relevant factor (e.g., Watergate scandal, stagflation, Iran Hostage Crisis).
• 1 mark for providing a clear explanation of how this factor undermined public trust.
• 1 mark for demonstrating specific contextual understanding (e.g., mention of unemployment and inflation trends, Nixon’s resignation, or the prolonged hostage standoff).
(Max 3 marks)
Question 2 (4–6 marks)
To what extent did foreign policy crises, rather than domestic issues, drive the broader ‘crisis of confidence’ in the United States during the 1970s?
Question 2
• 1–2 marks for describing at least one foreign policy crisis and its impact (e.g., Vietnam’s end, Iran Hostage Crisis, Soviet invasion of Afghanistan).
• 1–2 marks for describing at least one domestic issue contributing to declining confidence (e.g., economic stagnation, Watergate, rising inflation).
• 1 mark for analysis comparing the relative significance of foreign policy versus domestic causes.
• 1 mark for a historically supported judgement addressing “to what extent”.
(Max 6 marks)
