The Radio Free Hillsdale Hour

Episode: The Real Legacy of Jimmy Carter
Date: January 16, 2026
Host: Scott Bertram
Guests: Dr. Miles Smith (Hillsdale College), Stephen Hayward (Pepperdine University)

Overview

This episode explores the enduring legacy of Jimmy Carter’s presidency, focusing primarily on his economic policies, the era’s characteristic malaise, and the Democratic Party’s transformation. The discussion also briefly opens with Dr. Miles Smith on the U.S. Navy’s cultural and strategic crises, before a deep dive into Carter-era economics and legacy with author Stephen Hayward.

Segment 1: The U.S. Navy’s Strategic and Cultural Identity Crisis

Guest: Dr. Miles Smith
Timestamps: 01:05–19:18

Key Discussion Points

• Cultural Drift and Leadership

  • The U.S. Navy, once defined by Judeo-Christian values and a clear Western liberal identity, has lost strategic and spiritual focus.
  • “The Navy for a long time understood itself as this kind of defender of a Western liberal democratic republic… But I don’t think that’s necessarily what the Navy, not just the Navy, but the military, thought they were doing.” (Dr. Smith, 01:24)
  • Recent leadership changes show signs of a return to tradition and values under Admiral Caudle.

• Complacency and Geopolitical Rivalry

  • Americans take maritime dominance for granted, not realizing that maintenance requires constant effort.
  • China is rapidly increasing naval capacity, drawing parallels with Germany’s challenge to Britain pre-WWI.

• Strategic Isolation and Raw Tonnage

  • Senior naval leadership may be “sleepwalking into defeat” by underestimating the importance of raw ship numbers, as China rapidly expands its fleet.
  • “Since 1980, 87% of our shipbuilding capacity is gone.” (Dr. Smith, 05:02)

• Spiritual and Cultural Foundations

  • The navy's effectiveness historically drew from moral confidence rooted in Western and Christian values.
  • “Secularism at its best is actually an outgrowth of Christianity… [Sailors] should kind of know the world they’re fighting for.” (Dr. Smith, 11:33)

• Logistics, Modernization, and Global Commerce

  • U.S. capacity for shipbuilding and logistical support eroded, while China can produce more vessels—quantity can have its own strategic impact.
  • Oceans remain critical to global trade; “shipping is the lifeblood of the world’s commerce.” (Dr. Smith, 16:27)

• Importance of Allies and Naval Coalitions

  • Allies such as Japan, India, Australia are significant, with India seen as a major player not fully aligned with either the U.S. or China.
  • NATO, though sometimes controversial, plays a vital role in sustaining global maritime freedom.

Notable Quotes & Moments

• “Western navies had swagger back then... That swagger is kind of important.” (Dr. Smith, 07:25)
• “Whoever is controlling the world’s ocean, you want them to have as broad a view of that commerce as possible. Totalitarian regimes just can’t do that. It’s not in their nature to want the freedom of the seas for free exchange…” (Dr. Smith, 17:27)

Segment 2: The Real Legacy of Jimmy Carter

Guest: Stephen Hayward
Timestamps: 22:12–43:27

The Big Picture: Carter’s Presidency in Retrospect

• Carter’s astonishing rise from obscurity: “He came from 0% an asterisk in the polls at the beginning of the 76 cycle to being inaugurated as the 39th president in 18 months… but all the genius deserted him after he was elected.” (Hayward, 22:43)
• Carter’s presidency signifies the end of classical liberal economics, with stagflation marking a notable failure of Keynesian policy.

Stagflation and Economic Malaise

• Economic Hardships

  • Americans experienced high unemployment and inflation simultaneously—previously thought impossible under prevailing economic theory.
  • Gasoline shortages and rationing led to long lines and limited supply, while inflation became a weekly, visible phenomenon.
  • “You would sometimes have three or four stickers piled on top of one another with a higher price for something that had only been on the shelf for maybe a month or less.” (Hayward, 25:10)

• Origins and Policy Failures

  • While some economic woes began under Nixon, Carter is seen as having worsened them through incorrect diagnoses (“a moral failing of Americans”) and an over-reliance on government intervention.

Deregulation and Contradictions

• Despite liberal bona fides, Carter presided over major moves to deregulate transportation (trucking, airlines) and even took steps that led to the craft beer boom.
• “The principal legislation to decontrol trucking was worked out by Ted Kennedy… staff person who did all the analytical work… Stephen Breyer.” (Hayward, 29:18)
• Attempts at energy deregulation were muddied by fears of corporate profit (“let’s have a windfall profits tax”) and half-measures. True decontrol came only under Reagan.

The Malaise Speech and the Crisis of Confidence

• Carter’s famous “malaise speech” never actually used the word "malaise," but the label stuck. Americans, expecting policy solutions to gas lines and inflation, received a meditation on national soul-searching instead.
• “He spent most of the speech talking about a crisis of confidence in the American soul.” (Hayward, 33:14)
• The speech fell flat, reflecting Carter’s lack of actionable solutions and a growing disconnect from public expectations.

Carter’s Post-Presidency: A Mixed Legacy

• Widely lauded for humanitarian work (Habitat for Humanity, disease eradication), yet often criticized for freelance foreign policy interventions that undermined sitting presidents.
• "He was constantly undercutting President Reagan in the Middle east and elsewhere… Carter was actively calling around to leaders in the Middle east saying you should not cooperate with President George H.W. Bush’s coalition [in 1991]." (Hayward, 38:10)

Contrasting Carter and Reagan

• Reagan’s optimistic, empowering rhetoric and prompt, clear actions contrasted sharply with Carter’s handwringing and slow pivots.
• “A speech like that is really expressing the defects of our leader and not of the American people.” (Hayward, 40:01)
• Carter’s term catalyzed the Democratic Party’s transition, with growing tensions between liberal and conservative wings and a legacy echoed in later presidencies.

The Long-Term Democratic Party Legacy

• Carter’s transitional status between the old and new Democratic Parties paved the way for future progressives—Clinton, Kerry, Obama, and Biden.
• “Carter, he kind of sold out partly to the left. I mean, he appointed a lot of very left wing people that caused him problems… He was the transitional figure trying to hold the party together at a time the Democratic Party did not want to be held together." (Hayward, 41:03)

Notable Quotes & Memorable Moments

• “This was the closest America ever came to picking a name out of the phone book and making him president.” (Hayward, 22:43)
• “You know, the verdict of the 1972 election... was that government is best, which McGoverns least.” (Hayward, 41:03)
• “The most significant achievement of Ronald Reagan was proving that the presidency was not an obsolete institution and that in fact a person could govern effectively…” (Hayward, 37:42)

Timestamps of Key Segments

• Opening and Navy Segment: 01:05–19:18
• Jimmy Carter’s Legacy (main interview): 22:12–43:27
  • Economic Malaise and Stagflation: 22:43–28:00
  • Deregulation Debates: 28:14–32:28
  • The “Malaise” Speech and National Mood: 33:14–34:42
  • Comparing Carter and Reagan: 40:01–40:47
  • Democratic Party Legacy: 41:03–43:02

Conclusion

This episode provides a thorough review of Jimmy Carter’s presidency, reflecting on his rise, his struggles with stagflation and energy crises, ambitious-yet-contradictory deregulation moves, the famous “malaise” speech, and the lasting effects on the Democratic Party and American presidential politics. Peppered with vivid anecdotes, frank appraisals, and bite-sized history lessons, it strikes a tone both analytical and engaging for listeners seeking to understand why the Carter era still animates debate about American leadership and party identity.

Notable final quote:
“A speech like that is really expressing the defects of our leader and not of the American people.”
— Stephen Hayward (40:01)