In 1974, as a result of the Watergate scandal, Nixon became the first president to resign, to avoid being dismissed on charges such as obstruction of justice and abuse of power, and was succeeded by Vice President Gerald Ford. The presidency of Jimmy Carter in the 1970s was marked by stagflation and the hostage crisis in Iran. The election of Ronald Reagan as president in 1980 announced a change in U.S. policy, which was reflected in significant changes in taxes and fiscal expenses. His second term brought with it the Iran–Contra affair and the significant diplomatic progress with the Soviet Union. The later Soviet collapse ended the Cold War.