AMH2020 Final Exam Review pt. 3 Flashcards
the 1970s was most associated with the term “_________”
malaise
malaise
a combination of depression and anxiety
what spurred this feelings?
economic issues
what emotions characterized the decade?
hopelessness, fear, and anxiety
what political movement emerged in the 1970s?
New Right Conservatism
what was the main political theme in the previous decade (1960s)?
liberalism
5 short term causes of the economic crisis of the 1970s
- the oil embargo & energy crisis
- auto industry slump
- rising inflation
- federal deficit
- foreign competition
embargo
when a country refuses to ship or sell a product to another country
who was OPEC?
a collective organization of the most oil rich nations
why did OPEC enforce an oil embargo against the US?
the US had supported Israel in a lot of middle eastern conflicts
why did the oil embargo result in an energy crisis and economic issues?
shutting down the countries main source of energy caused shortages and raised prices
how did the energy crisis segway into an auto industry slump?
people bought more foreign cars because they were more fuel efficient and thus served energy
what was a consequence of the auto industry slump?
increased unemployment
why did the cost of basic goods increase (inflation)?
businesses had to balance out the high shipping costs they were paying
what caused the federal deficit?
the government went into debt from the expensive vietnam war and LBJ’s great society programs (medicare, medicaid, etc.)
what created competition for american businesses?
an increase in Americans purchasing foreign goods
the short term causes of the economic crisis combined to create _________.
stagflation
stagflation
a combination of inflation and stagnation (stagnant economy)
de industrialization
the decline of American manufacturing economy
- a long term causes of the economic crisis
2 main regions where most manufacturing was taking place:
Northeast and Midwest
what happened in the Northeast and Midwest in the 1970s?
factories started to decline in these areas and outsource
outsource
businesses moving overseas for the benefits
⭐️ why did businesses outsource to asia and latin america?
- cheaper labor
- less regulation
- cheaper raw materials
- cheaper land
- new markets
- fewer unions
- fewer taxes
what area offered the same benefits to businesses as outsourcing?
the sunbelt