The economic history of the Carter Administration can be divided into two more or less equal periods. The first two years were a time of continuous recovery from the severe recession of 1973-1975, which had left investment in fixed capital at its lowest level since the recession of 1970 and unemployment at 9%. The other two years were marked by double-digit inflation with very high interest rates, oil shortages and low economic growth.
President Carter’s first economic plan proposed "increased government spending," since Carter felt that much of the economic slump of previous years had been caused by government inaction.
