Economy (73-80)

Question 1

What was the state of the US economy at the start of the 70s?

Answer 1

1973 - US was the largest world economy and had a high standard of living

Question 2

Give a small summary of what began to happen to the economy in the 70s?

Answer 2

• All family incomes and living standards fell
• Cost of living rapidly increased
• Increasing mechanisation meant machines were replacing men, thus decreasing employment

Question 3

Explain the issues with homelessness in the 70s

Answer 3

• Poverty increased as the 70s went on
• Black families suffered even more
• Declining marriage rates meant more homeless, single women
• Number of mental institutions decreased due to campaigns to give people greater freedoms and independence, thus many people ended up on the streets

Question 4

What caused the Oil Crisis, and what were the consequences?

Answer 4

• Dramatic rises in the prices of oil resulted in an energy crisis
• Nixon’s support of Israel in the Yom Kipper War led to an Organisation of Petroleum Exporting Countries Oil embargo on the US - limited their supply
• Massive protests - 100k independent truckers went on strike, bringing the nation’s roads to a standstill for 11 days
• Cheap oil had originally been vital to the post-WWII prosperity and economic growth

Question 5

What were the consequences of Foreign Competition?

Answer 5

• Combination of energy crisis, foreign economic competition contributed to a sense of national decline
• American companies struggled against technologically superior rials like Germany and Japan
• Inexpensive and well-made cars from Japan were attractive to Americans

Question 6

Give a summary of the economy in the 70s

Answer 6

• Declined
• Americans viewed this being due to foreign competition, as well as suffering from the rise in the cost of living, and the homelessness issue