157 The Conservatism of Carter Years
The election of Jimmy Carter in 1976 brought a Democrat to the White House for the first time since 1969. Large Democratic majorities in Congress provided the new president with an opportunity to move aggressively on the legislative front. With the infighting of the early 1970s behind them, many Democrats hoped the Carter administration would update and expand the New Deal. But Carter won the presidency on a wave of post-Watergate disillusionment with government that did not translate into support for liberal ideas. Events outside Carter’s control helped discredit liberalism, but the president’s own policies also pushed national politics further to the right. In his 1978 State of the Union address, Carter lectured Americans that “[g]overnment cannot solve our problems…it cannot eliminate poverty, or provide a bountiful economy, or reduce inflation, or save our cities, or cure illiteracy, or provide energy.” The statement neatly captured the ideological transformation of the county. Rather than leading a resurgence of American liberalism, Carter became, as one historian put it, “the first president to govern in a post-New Deal framework.”
In its early days the Carter administration embraced several policies backed by liberals. It pushed an economic stimulus package containing $4 billion in public works, extended food stamp benefits to 2.5 million new recipients, enlarged the Earned Income Tax Credit for low-income households, and expanded the Nixon-era Comprehensive Employment and Training Act (CETA). But the White House quickly realized that Democratic control of Congress did not guarantee support for the administration’s left-leaning economic proposals. Many of the Democrats elected to Congress in the aftermath of Watergate were more moderate than their predecessors who had been catechized in the New Deal gospel. These conservative Democrats sometimes partnered with Congressional Republicans to oppose Carter, most notably in response to the administration’s proposal for a federal office of consumer protection.
At a deeper level, Carter’s own temperamental and philosophical conservatism hamstrung the administration. Early in his first term, Carter began to worry about the size of the federal deficit and killed a tax rebate he had proposed and Congressional Democrats had embraced. The president’s comprehensive national urban policy veered to the right by transferring many programs to state and local governments, relying on privatization, and endorsing voluntarism and self-help. Organized labor felt abandoned by Carter, who remained cool to several of their highest legislative priorities. The president offered tepid support for national health insurance proposal and declined to lobby aggressively for a package of modest labor law reforms. The business community rallied to defeat the latter measure, in what AFL-CIO chief George Meany described as “an attack by every anti-union group in America to kill the labor m