Once is Enough: Ford Wins in 1976
In 1976, after the success of the first TV debate between himself and Jimmy Carter, President Ford decides that once is enough and he doesn't debate Carter a second time. Thus he never makes the infamous "Soviet domination" gaffe that halted his momentum and Ford narrowly defeats Carter.
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Yet Ford's term quickly proves to be a disaster. Obstructed by an increased Democratic majority in Congress, Ford accomplishes little in domestic matters as inflation and gas prices climb to unbearable limits. On the advice of Henry Kissinger, Ford pressures the Shah to crack down on internal dissent. After this makes the Shah even more unpopular, helping to cause his overthrow in 1978, Ford grants him asylum in the United States. In response Iran overruns the U.S. Embassy and takes Americans hostage. Despite Kissinger's best efforts, Iran refuses to back down and the ensuing crisis lasts until the inauguration of Ford's successor.
In 1980, with the economy now officially in recession, Ford's approval rating plummets to 34%. California Governor Ronald Reagan defeats Vice-President Bob Dole in the Republican primaries, but he decisively loses to Democratic New York Governor Hugh Carey in the general election.
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Once is Enough - Part II: The Democratic 1980s
Moments after Carey's inauguration, the American Hostages in Iran are finally released. Ford retires to Michigan where he lives a comfortable post-presidency. In later years historians would re-evaluate his pardon of Nixon and praise his remarkable comeback victory in 1976, but nonetheless Ford's legacy would be that of a below average President due to his poor handling of America's declining economy and the Iran Hostage Crisis. But for the time being, the 1980s signal a chance to move on into an era of peace and prosperity. Working closely with the Democratic Congressional leadership, Carey enacts an economic stimulus and replaces Ford's conservative Federal Reserve Chairman with the liberal Paul Volcker. By late 1982 the recession is over and the economy is improving. Yet Republicans still make major gains in the 1982 midterms. One major defeat for the Democrats is in Carey's home state of New York, where Governor Mario Cuomo loses to Republican Congressman Jack Kemp.
In 1983, it's not clear who will win the next Presidential election. Carey is widely expected to be his party's nominee without much opposition. But the Republican nomination is wide open. Despite his defeat in 1980, Reagan remains popular with conservatives and opinion polling shows him trailing Carey by only 3%. In November 1983 Reagan declares his candidacy. Other candidates are Senate Minority Leader Howard Baker, former Secretary of State George Bush, Connecticut Senator Lowell Weicker, and perennial candidate Harold Stassen. Former Vice-President and current Governor of Kansas Bob Dole declines to run, preferring to wait until 1988. The clear frontrunner is Reagan, but Baker is an attractive candidate to many Republicans who remain bitter over 1980. In the Iowa caucus Baker upsets Reagan, who then fires his campaign manager and defeats Baker in New Hampshire. In both contests, despite a massive fundraising effort Bush loses badly due to his baggage from the Ford years (when he was strongly connected with the foreign policy crises of the 1970s), as well as his own awkwardness on the campaign trail. At the 1984 Republican convention Reagan chooses Baker as his running mate and they join forces to take the fight to the Democrats.
In the general election, Carey leads in almost all opinion polls. With the economy booming and America at peace, most Americans refuse to change course. Further, at age 72 many doubt that Reagan is up to the job of being President. To fight against this perception Reagan campaigns aggressively around the nation, hoping to demonstrate his stamina and mobilize conservative opposition to Carey. Reagan is popular enough in the the West, the Plains states, and the South to stay just barely above 100 electoral votes. Yet Reagan's charisma isn't enough to overcome Carey who wins a second term in a landslide.