impact of economic change Flashcards
1
Q
what was the state of the USA economy after WW2?
A
one of the wealthiest economies inthe world - led the world in manufacturijg industries
2
Q
what posed a probelm to the USA economy in the 1960 onwards ?
A
- expesne of the Vietnam war
- Great Society - raising of federal government deficit
- inflation and a weakened dollar
3
Q
what was the effects of inflation from 1973-1980?
A
- inflation in double figures for much of the decade
- 1978 poll showed that 63% of people saw inflation as their biggest problem
- cost of living rose 8.2% in this period
- much of those effected in the Rust Belt - declining manufacturing areas
4
Q
stats on umelployment in 1970s-80s?
A
- 6.5% late 1974 - 8.9%in mid 1975
- service jobs made up 70% of jobs 1980
- women in work increased by 14% betwee 1960-80
5
Q
what were reasons for rising unemployment?
A
- other countries made manufacturing goods better and cheaper
- increasing mechanisation - men were being replace by machines
6
Q
what were the reasons for increasing homelessness?
AAAIMH
A
- decrease in institutions for the mentally ill - American Association for the Abolition of Involunntry Mental Hospitalization (more personal freedom) 1973 - patients had oto be paid for their labout and congress didnt want to pay the differnece
- urabnd renewal policies - housing for poor demolished
- increase in cocaine - using money on drugs rather than accomodation
7
Q
How did the oil crisis of 1970s come to be?
A
- 30% ameircas oil imported form middle-east
- Nixon support Isreal in Yom Kippor war - middle-east oil embargo on USA
- after embargo oil prices rose dramatically
- paying 30% more for heating anf oil
8
Q
what were some reactions to the oil crisis?
A
- 1974 strike - indeppendant truck drivers brought roads to standstill for 11 days
- winter ‘76-77 meant schools and factories had to close - energy riots in pennsylvania
- 1977 united mine worker strike - coal shortages, shortened work week
9
Q
what was the impact of the oil crisis of the 70s?
A
- grwoing dissillusionment with the government - people wanted them to do something but seemed impossible
- 1977 - carter said to individully save oil and energy
- americns still consumed alot of oil
- american stuggled against foreign traders (germany, japan) trade deficit $440 billion
- still produced 25% of worlds goods
10
Q
what was the government response to economic crisis of the 70s?
A
- rejection of fords WIN policy
- ford proposed tax rises and cut in federal expenditure - very unpopular
- tax cuts brought america out of recessions
- carter also unpopular
- focus on inflation over unemployment angered workers
- bussinesses feared engergy and trade deficit
- growing sense of failure and crisis
