Abstract
During the 1950's and 1960's the United States enjoyed their position of Free Leader of the world implying a spectacular economic growth with a low unemployment rate and a dominant position in international debates. The Watergate crisis and the Vietnam war's bog cast a chill into the prosperous cycle of the US.
Ford came into office on August 9th, 1974 after Nixon's resignation. Following the Watergate scandal, Ford embodied the hope for transparency and honesty. But Ford's pardon former president «Now, therefore, I, Gerald R. Ford, President of the United States (...) do grant a full, free, and absolute pardon unto Richard Nixon for all offenses against the United States» as an intent to unite the nation made his approval rating plunging from 71% to 50% in a night.
Still more troubles were coming for Ford with the Arab oil crisis of 1973. Lead by the Organization of Petroleum Exporting Countries, the world oil prices increased by 70% putting an end to the era of cheap energy. This event entailed a series of terrible effects on the American economy. Indeed, the already profound inflation deepened at 12% annual rate while Ford tried to reduce it with his «Whip inflation Now» plan, an attempt to reduce taxes and spending's. As the consumer prices increased by 23 percents in the direct aftermath of the crisis, the United States witnessed a fall in their demand bringing down the employment rate with it. The increasing commercial competition coming from Europe and the Japan, as well as the large American baby boom workforce contributed to heighten the unemployment rate. Ford's presidency marked the beginning of the American recession.
