is that jason says smerconish, another petty and liberal moron who knows best for us all. and i don't mean to be betty, but i think you mean for all of us. see you next week. i must say to you that the state of the union is not good. >> will these people translate politics into power and make the government work. >> we are privileged to witness a significant treatment in the cause of peace. >> what was once a distant foreign policy issue has become a domestic issue. >> there is no delays -- >> we can turn this country around and our economy around and the time to do it is now.

♪ ♪ in just a few moments now, president nixon will be appearing before the people perhaps for the last time as president of the united states. >> good evening.

i shall resign the presidency effective at noon tomorrow. i am turning over the direction of the vice president ford, i know the leadership of america will be in good hands. >> in those first few days and weeks, when gerald ford ascended to the presidency, you could say if you were casting somebody for the role of a president to heal the nation, gerald ford would have been that person. >> gerald ford was one of the most popular people in congress, conservative and republican to the core, but always willing to talk, always willing to compromise. >> my fellow americans, our long national nightmare is over. >> part of what gerald ford wanted to do was move beyond watergate, and so to say our

long national nightmare is over was to try and tell the nation, my main job as president will be to heal this country. >> my our former president, who brought peace to millions find it for himself. >> david, what do you think? >> i would guess that in his term we may see a little of what we were promised in the preamble to the constitution but seldom see and that's a little bit of domestic tranquility. >> when gerald ford became president he understood the public needed something completely different. he seemed to be the right man for those times. >> a change from nixon to ford is likely to give the nation's economy a psychological lift, but it's going to take more than a new president to cure the economy. >> it was an extremely difficult time. ford inherited the deepest recession since the 1930s but he was spending 25% of his time on

leftover nixon matters. >> ford is in a brand-new job, and he faces to pardon nixon or let the investigation run it's course. >> today was another one that historians will be writing about and thinking about for years to come. >> 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. >> you think president ford's actions were wrong? >> wrong, absolutely wrong. >> ford did the generous thing and i think the american people must forget about nixon. >> it raises as a political issue what is under the law except for presidents that get different treatment. >> a sitting president of the

united states testifying before a congressional committee. >> the sub committee will inbound order. >> i had just been out of law school for a few years and i was the last person on the sub committee to ask a question and i thought for sure somebody on the sub committee would ask president ford the tough questions about the pardon. nobody asked the questions. >> i would like to point out, mr. president, the circumstances in which the pardon in which you issued and the secrecy in which it was issued made people question whether it's was a secret deal? >> i repeated with emphasis, whether we had an indictment, the trial, a conviction, the attention of congress would have been diverted from the problems we have to solve. >> ford looks smart in history, and it did not look that great at the time. he took a beating for it.

>> if we had a trial of nixon, the country would have been stopped. you got to remember, presents are there to govern, and we had not had much governing. >> at least 6 million people are out of work and unemployment in the united states was at its highest level in 13 years. >> economically, the country began to pay a heavy price for the long vietnam war for which tax increases had not been passed to pay for it. >> we have stagflation, it's a new disease, it's stagnation with deflation. >> the steaks have gone up, and i can't afford it. >> for many pensioners, the struggle is to find enough to eat, from garbage if necessary. >> americans were feeling poorer and poorer. their salaries were not going up

as quickly as the cost of milk and cheese, something is wrong with the system. >> there is only one point on which all advisers have agreed. we must whip inflation right now. unless every able american pitches in, congress and i cannot do the job. >> gerald ford is a conservative republican so he is trying to figure out how do you deal with economic problems without strong government so he puts together this program that relies on voluntary action by americans. >> there was no program. basically the president was saying, buy less. >> the win buttons were part of the propaganda. >> are you suggesting, sir, the buttons and flags are trivial? >> yes.

>> abc news presents live coverage of the president's state of the union to congress. >> the president of the united states. >> when he goes to give the state of the union address, he is under tremendous pressure. i remember being there, and it was strong, you could feel it. >> a lot hangs on this. this is the first state of the union. >> 26 years ago a freshman congressman who was out to change the world stood at the back of this great chamber, as president truman said, i am happy to report to the 81st congress that the state of the union is good. today millions of americans are out of work, recession and inflation are eroding the money of millions more, and prices are too high and sales are too slow, and i must say to you that the state of the union is not good.

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i bundled renter's with my car insurance through progressive for just six bucks more a month. word. there's looters running wild out there. covered for theft. okay. that's a tidal wave of fire. covered for fire. what, what? all right. fine. i'm gonna get something to eat. the boy's kind of a drama queen. just wait. where's my burrito? [ chuckles ] worst apocalypse ever. protecting you till the end. now, that's progressive. former california governor, ronald reagan, is about to hold a press conference where he is expected to announce he is a candidate for the presidential nomination. >> one of the things that was a problem for ford is that his party was coming apart at the scenes, and reagan was able to mount a formidable campaign.

>> reagan was the great two-term governor of california and he goes after gerald ford as being weak. >> i am quite critical of the foreign policy right now, and i think it's almost anchorless and aimless. >> he's a good actor, and he is also a good and formidable kh challeng challenger. >> he was calling him a liberal sellout. >> in the texas primary, reagan wiped out the president in a stunning victory. >> there are difficult and formidable obstacles ahead of us. we go in the right direction, young man! >> this was a period of time right in the wake of watergate. americans were very, very

suspicious about government and about people that spent too much time in washington, d.c., so jimmy carter could run as somebody as an outsider and somebody not tainted by washington, d.c. and its culture. >> there was a major headline on the editorial phase, and they said jimmy carter is running for what? i am running for president. >> jimmy carter? >> who? >> i don't know who he is. >> i picture him like one of us. >> jimmy carter grew up in a small town in the south, in planesville, georgia, and he became a peanut farmer himself. from georgia he basically started his political ascent. >> the idea that somebody from that region could aspire to that kind of national office. you know, people didn't even try. >> yesterday about 50,000 democrats in iowa met in

caucuses to choose -- >> the iowa caucus is something never paid attention to and carter and his team said if we go and win the media will treat us like a serious political frontrunner. >> mr. carter is also deeply religious. he prays in public and speaks openly about his religious beliefs. >> carter was a person that you thought would lead america to some kind of spiritual redemption, which at the time we really needed. >> nothing has happened to change the feeling that jimmy carter is on his way to a kind of coronation in scaquare garde. >> it was really close. but by a whisper, gerald ford

got the nomination. >> when ford was nominated, reagan supporters staged a demonstration on the convention floor, and it went on and on and on and on. >> now, at the end of the convention, it's clear, and maybe gerald ford may won the nomination, reagan was in the hearts and minds of the conservatives. >> jimmy carter starts to surge over ford. >> mr. president, i would like to explore more deeply our relationship with the russians. >> he asked a question about whether the united states was

accepting of soviet domination of eastern europe. >> there is no soviet domination of eastern europe, and there never will be under a ford administration. i am sorry. did i understand you to say, sir, that the russians are not using eastern europe as their own sphere of influence? >> everybody's job just dropped. are you alive? are you aware? >> what he meant to say i will not accept that. >> it was a loss of touch with a reality. >> clearly a huge moment where the country makes the judgment, you know what, maybe we do need to go in a different direction and replace the president. >> ford had never lost an election in his life and won 15

straight terms in the house and all of a sudden he is beaten by a one-term governor of georgia, and he was crushed. >> my voice is not up to par. let me call on a real spokesman for the family, betty. >> it has been the greatest honor of my husband's life to have served his fellow americans during two of the most difficult years in our history. >> i think the real test comes now, will these people that have taken apart the whole system can somehow translate politics into power and make a government work? that's their real test and we're on the threshold, possibly the greatest change since the new deal in 1932. everyone loves the picture i posted of you.

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♪ >> the parade has started. he is out of the car. >> this is a change in the schedule. he is walking. >> most presidents in our time have wanted to do this, but in recent years after our various tragedies it has been discouraged and there has not been very much of it. >> jimmy carter and his wife, rosalynn, get out of the car, and it was game changing.

people look at that and said this is what we need, a real person. >> glamor is not what we were in the market for. we were looking for a redeemer. >> still having a meeting with some of the cabinet offices -- >> are you going upstairs to look at the living quarters? >> yes, for the first time. >> the things he thought were important to fix the economy and bring some peace to the middle east, and fix energy and other things. >> we will have available for public scrutiny and for congressional action by april 20th, a comprehensive long-range energy policy. >> the winner of 1977 is one of the worst that the country experienced. this comes at the time the economy is doing poorly. >> the severe weather already led to a severe shortage of natural gas. >> at least 200,000 layoffs due

to industrial gas curtailments so far. >> in the dayton area of school districts must close for 30 days. >> congress will consider this week emergency gas legislation. >> good morning. president oba president carter is about to speak to the nation. >> the crisis is not yet overwhelmed us, but it will if we do not act quickly. we need to shift to coal while taking care to protect the environment and applying stricter standards to nuclear energy. this difficult effort will be the moral equivalent of war. >> the policies that he rolls out around the speech don't go anywhere and one of the key reasons for this is jimmy carter had poor relations with congress. >> it will be a catastrophic, cataclysmic calamity. >> carter alienated the powers

that be in congress, so when jimmy carter began to falter, he did not have friends coming out and speaking for him, in fact, i was getting calls from democrats criticizing him. >> i always heard about the advise and consent role of the congress, and so far they have been a little stronger on the advise than consent. >> carter inhaeurts a financial mess. >> his first long overseas trip to europe. he met with saw dot of egypt and king huh lead of saudi arabia and the shaw of iran. >> the united states always backed the shaw of iran, and that goes back to 1983.

>> in one of the more troubled areas of the world. >> even though western governments loved the shah, they were not paying attention to the facts on the ground and there were many people discontented with the shabazz of the eubg streamly impressive policies. >> iran was important because of its oil resources, but also because the shah was an ally when it came to regional goals. this was a natural alliance for the united states. >> the president and the shah of iran spent a long time talking about the middle east, and it was brought up by other leaders in other countries. >> jimmy carter saw the middle east and the settlement of the conflict between the israelis and abe arabs.

>> after begin returned the visit the enthusiasm began to fall off, and the negotiations broke down. >> jimmy carter took advantage of sadat's willingness to talk to the israelis, and he thought he may be able to do something that his predecessors couldn't. it was a huge gamble. >> the par teusants are beginning to arrive in the washington area, and president carter and sadat will sit down together and attempt to work out the peace settlement in the middle east. >> failure would increase the impression that mr. carter is a nice man but inpt president. >> what the three are discussing, whether the talks are friendly or tense, we just don't know because of the unprecedented secrecy. >> at the end of the day

rosalynn said you could hear them screaming at each other and he had to physically separate them and block them from leaving. >> there is still no official word on how the talks are going or when they might end, but their length already has given rise to reports of a stalemate. >> carter had a photograph of the three men and made up copies for nine grandchildren and signed each of them, jimmy carter. he handed him the photographs and he said i had hoped to write this is where your grandfather and i made peace, and bagan began to weep. he went back to tell sadat the signing was off and the phone rang and it was bagan saying he would sign.

[ applause ] >> we are privileged to witness tonight a significant achievement in the cause of peace, an achievement none thought possible a year ago. >> the peace treaty changed the tenure of politics across the region. an arab country that accounted for a quarter of the arab country recognized israel's right. >> and ma knocken pwaeugen says peace now celebrates a great victory. n just living life. and milking it. start every day with the power of protein and milk life.

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[ chanting ] >> the camp david accord was carter's crowning achievement but it was shortly thereafter diminished by the crisis with iran. >> atolla was called on his supporters to oppose the shah. >> he called for a building of islamic west not depending on the west. >> i don't think the united states as a secular country

understood that a religion. >> we support the shah, but we don't try to interfere with the internal affairs of iran. >> you said we put him in but can't keep him in. >> i think that's a decision to be made by the people of the country. >> the shah of iran, and all around the world government leaders are trying to come to grips with the fall of the man known as the king of kings. >> the old chant of death to the shah was replaced today by a new one, death to carter. >> we want jimmy carter knows we want freedom and we don't want his human rights anymore. >> the source of energy for the 1970s was a core question, the revolution is drying up our energy supply and we are literally running out of gas. >> could i have your attention,

please. there has been a state of emergency declared. >> the nuclear power plant near harrisburg, pennsylvania, the cooling system broke down this morning and radioactive steam saw scaped in the air and radiation passed through the four-foot concrete walls and was detected amile away from the plant. >> this was the first nuclear disaster when the country was relying on the nuclear power and the federal and state government could not do much about it. it was scary. >> it was the beginning of mistrust of nuclear power as the magic salve to the energy problem. >> he is reassessing the country's new safety regulation and that comes from a president who has been claiming that more nuclear reactors are needed to offset the demand for foreign oil. >> the energy crisis which had been going on all decade only gets worse with middle eastern

turmoil. >> californians sat fuming in their cars wondering who and what had put them there, and somehow there was not enough gasoline to go around, but prices rose elsewhere and lines began forming and americans began realizing that california was not unique, and california was first. >> people in the country always worry about the price of gas and this was a worry about the availability of gas. >> while the oil producers were getting ready for another price increase and the consumers were getting ready to meet in japan. >> anything you can do to reduce the gas line to the united states? >> my information is in the next few weeks hopefully sooner, but there will be an increase in supply of gasoline to the affected areas. >> i think it's phoney. i think they are trying to get the prices jacked up. that's my personal opinion. >> what was once a distant foreign policy issue has become a domestic issue. >> the bloodiest episode in

pennsylvania, 32 people injured when motor yourists joined the truckers in protesting the fuel shortage. >> a crowd to two to 3,000 went into the intersection and it turned violent. >> this is the perfect quintessentialtial element. >> president obama flies straight home and announces a television speech to the nation on thursday, and then to camp david presumably to work on the speech and then a sudden change, the energy speech cancelled with no explanation, and critics speech with indecision. >> and the latest group shuttled to camp david includes the secretary swepbgen jury.

>> how he has been up there for eight days and there is no word on when the camp david domestic summit will end and the president will come down from the mountain. >> he carries with him two tablets of stpoepb. >> sources say mr. carter will address what he calls a ma lay affecting the nation. >> this is an abc news special report. >> this is a crisis of confidence. for the first time in the history of our country a majority of our people believe the next five years will be worse than the past five years. too many of us now tend to worship self indulgence and consumption, and human identity is no longer defined by what one

does, but by what one owns. >> the president has concluded his speech, and what a remarkable speech it was, it was almost a sermon. >> afterwards he gets a bump in the polls. people are like, hey, this is good, and then the op eds begin to drip in. >> they are making a mistake if people think there's a confidence of crisis in themselveses and they feel there's a confidence crisis in the president. >> it was the analysis of the speech that began to turn things for him and he basically fired his cabinet. >> when the cabinet gathered at the white house for a two-hour e meeting with the president, but by the time things had changed. >> don't you think somebody should come out and assure the country we don't have to have these crisis. >> they do know who is running

the government. the american public is not confused about who is running the president. the president is running it. >> sometimes perception is more important than reality and the perception is that jimmy carter made one big mistake after another. if you have moderate to severe plaque psoriasis. isn't it time to let the real you shine through? introducing otezla, apremilast. otezla is not an injection, or a cream. it's a pill that treats plaque psoriasis differently. some people who took otezla saw 75% clearer skin after 4 months. and otezla's prescribing information has no requirement for routine lab monitoring. don't take otezla if you are allergic to any of its ingredients. otezla may increase the risk of depression. tell your doctor if you have a history

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the shah of iran is in a new york city hospital tonight. an american government source in washington says it opposed the monarch is suffering from cancer and a blocked bile duct. >> the president iranian government was assured of that. meanwhile tighter security measures have been put in effect at the u.s. embassy in tehran. >> he came to the united states for medical treatment, and at that point it was the match that lit the conflict. >> the american embassy in tehran is in the hands of muslim students tonight spurred on by an anti-american speech by the toe mainy, and he dozens of

americans hostages. >> the iranians burned the southwests flag and denounced the united states government and said they would stay until they send the shah back to iran. >> the provisional government of the prime minister, which was essential essentially, the people we dealt with, had resigned. at that point i remember thinking, we are definitely in the soup, because there was nobody to talk to, there was no government for our government to talk to. >> the hostages at the american embas embassy, more than 60 of them, spent their ninth night as prisoners of the iranian captors. >> i am ordering that we discontinue purchasing of any oil from iran for delivery to this country. >> high administration officials believe through today's action

they have removed a bargaining tool that can no longer be used in dealing with the hostages. other officials say today's announcement was intended to dam pen the outrage and frustration expressed by americans. >> how they treated our dip lamenla diplomats was humiliating. >> the meetings go on. >> the first sign of hope in two weeks from the american embassy in tehran, the students holding the hostages there promised to obey an order from the i law toe mainy to free all women and blacks, and they have spent ages under american pressure and tyranny. >> and in nearby camp david, the

president was apparently confident that some of the hostages will soon be free. we are thankful, said his statement, the ordeal may be over for them and they may soon be reunited with their families, but went on to urge that the authorities in iran now move to secure the safe release of all those still being held. >> what can you do? you bring pressure. you can bring sanctions and go to the united nations and send embough saeur ease, but america can do a thing. >> america, day 15, day 100, it started wearing on people. and president carter became the symbol of lost prestaepblg. >> ronald reagan is running officially, and he taped a speech yesterday for showing on

about 90 independent television staeulgt stations. >> the crisis we face is not the result of any failure of the american spirit, it's a failure of our leaders. >> the country is looking for optimism, and looking for a new dawn, new beginnings, and ronald reagan epitomized all those things. >> reagan is building coalition bringing in christian fundamentalist, and law and order people. if you are going to do it, you have to do it with a smile. >> we can turn this country around and turn our economy around and the time to do it is now. >> there are many democrats who were worried that carter is not going to win, so ted kennedy, a senator from massachusetts decides too take him on. >> today i formally announce i

am a for the of the united states. >> and jimmy carter and kennedy became the polar opposites within party and jimmy carter on top that had a feeling that the kennedys felt they were above we southerners. >> it's a nasty contest when somebody asked jimmy carter in passing what do you think about being challenged by ted kennedy, and jimmy carter says i'll whip his ass. >> this is a special report from cbs news. >> the 174th day of the iran crisis has brought us startling and strapblgic turn of events. the united states mounted a military operation into iran last night to rescue the american hostages but it failed. eight helicopters took off from the deck of the aircraft carrier, and they proceeded toward a desert staging area 200 miles southeast of tehran. >> two of the helicopters

experienced problems on route. >> once on the ground, yet another helicopter malfunction leaving only five for the mission, and at that moment the president scrubbed the mission. >> in the rush to pullout, one >> eight of our men were killed. four others suffered burns. the bodies of the dead have not yet been returned. >> the ayatollah seemed to enjoy stage managing in this grisly theater as the bodies were shown. the soldiers, obviously, took no joy here. >> it was my decision to attempt the rescue operation. it was my decision to cancel it when problems developed. the responsibility is fully my own. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪

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why do you want to be president? >> well, i'm -- >> kennedy should have been prepared to answer that question. in some ways, he was preparing to answer that question his entire life. instead, he gives a stammering, halting answer that instantly told people, this guy does not know why he wants the job. >> there's more natural resources than any nation of the world. >> the interesting thing is that, after it became clear that

kennedy couldn't win, he became a great candidate. >> there is no malaise in the spirit of this country. it's just mr. carter! . >> kennedy's primary challenge has a big effect because many democrats are not that enthused about their candidate. >> once the convention takes place -- >> live from new york city, the 1980 democratic national convention. >> democrats have had their first day of the convention. senator kennedy lost the first and decisive fight. jimmy carter is the ynominee of this party. >> i congratulate president carter on his victory here. i am confident that the democratic party will reunite on the basis of democratic principles and that together we will march towards a democratic victory in 1980. >> people are cheering kennedy on. the enthusiasm for what he has to say is much more than the response that carter gets.

>> good times and bad, in the valleys and on the peaks, we've told people the truth. >> carter then wants kennedy to come on stage and hold hands and show people that this party is unified. but when kennedy comes up, he doesn't really do that. >> there will be no pictures in tomorrow morning's papers, none for posterity, of kennedy holding carter's hand aloft. >> this is slightly awkward. >> kennedy did not win. could not win. and yet he had ripped the party apart when what they needed to win that election was full democratic unity. >> this country needs a new administration with a renewed dedication to the dream of an american. an administration that will give that dream new life and make america great again.

>> ronald reagan will call carter out for this whole idea that we live in an age of limits and say, no, america's future is just as expansive as it ever was. >> next tuesday all of you will go to the polls. i think when you make that decision, it might be well if you ask yourself, are you better off than you were four years ago? >> this is continuing abc news election night coverage. >> it is beginning to look like, well, the word is "landslide" for ronald reagan tonight. but they're not breaking out the champagne at the reagan headquarters now, only because they can't find an opener. >> jimmy carter though beaten at the polls didn't act like a beaten man. he said he didn't feel people had turned against him personally but voted over america's lost dominance in world affairs. mr. carter showed a flash of anguish only once when he said

his wife had seen one of the majority preachers on the television this morning to say that a true christian has been put into the oval office. >> we knew that reagan had won the election. the iranians told us that, a certain gloating feeling that they were responsible for jimmy carter's dedefeat. >> mr. carter is back in his office burning the midnight oil, and perhaps that's characteristic of the jimmy carter presidency. he's doing it here on his last night in washington. >> up until the last moment, right before he actually has to shake ronald reagan's hand during reagan's inauguration, jimmy carter is doing everything he possibly can to try to get those hostages home. >> jimmy carter was perceived in iran as the ultimate ally of the shah and they didn't want to give any rewards to jimmy carter. >> but i will faithfully execute the office. >> we had to wait until ronald reagan had taken the oath of

office before the plane was allowed to fly out of teheran to algiers. everything was delayed despite the agreement to make sure jimmy carter didn't get any credit for the freedom of the hostages. >> it was a bittersweet moment as jimmy carter, private citizen, left andrews air force base outside of washington, to go home to georgia. >> luck is a big factor in a presidency, and jimmy carter had some very bad luck. >> because of the blow-back from vietnam and watergate, it will be recognized that jimmy carter inherited a national and world situation that was almost completely unmanageable. >> a few moments ago on air force one i had received word officially for the first time that the aircraft carrying the 52 american hostages had cleared iranian airspace on the first leg of the journey home and that

every one of the 52 hostages was every one of the 52 hostages was alive, was well, and free. -- captions by vitac -- www.vitac.com tonight our topic will be murder as a growth industry. >> murder has become an epidemic in america. >> in the last ten years, the homicide rate has increased by leaps and bounds. >> my god, somebody fired a shot! >> these tragedies keep getting closer and closer to home. i'm afraid to let my kids walk out the door. >> urban crime wave will touch off a new round of gun buying. >> step out, mr. bundy. >> i'll plead not guilty right now. >> there has been a disturbing growth in cult phenomenon in this country.