In January 1977 Jimmy Carter succeeded Gerald Ford as President after defeating the incumbent in a close election. The economy was in a recession when Carter came to Washington. Immediately upon taking office, he declared that his primary domestic goal was to create jobs for the unemployed. At his request, Congress passed an Economic Stimulus Appropriations Act to create jobs and help the economy. The Carter Administration also sought to make government more efficient and productive and less burdensome by continuing the task of reforming the regulatory system begun during the Nixon Administration. Also contributing to this goal was the Civil Service Reform Act passed by Congress at Carter's request. Unemployment declined, but massive cost-of-living increases stimulated by huge oil price hikes in the Middle East soon dominated the Administration's domestic agenda. There was little it could do to control inflation, which soon reached double-digit levels. The holding of American hostages taken by Moslem fundamentalists in Iran in November 1979 became the Administration's over-riding concern until Carter left office in January 1981, defeated by Ronald Reagan.

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