Impact Of Economic Change In US Society 1973-80 Flashcards
Who became the only person in US history to become president without winning an election?
Gerald Ford
Gerald Ford assumed the presidency in 1974 following Richard Nixon’s resignation.
What policies did Carter introduce in 1977?
Policies intended to reduce the rate of employment and inflation
These policies aimed to address economic challenges faced during his presidency.
What significant event occurred at the Three Mile Island nuclear power plant in 1979?
A nuclear accident
This incident raised concerns about nuclear safety in the United States.
What global crisis was triggered by the Iranian Revolution?
Global oil crisis
The revolution disrupted oil supply, leading to increased prices worldwide.
What major event occurred in 1980 involving hostages?
Iranian hostage crisis
This crisis involved the seizure of the US embassy in Tehran and the holding of American diplomats.
Who defeated Carter in the 1980 presidential election?
Ronald Reagan
Reagan’s victory marked a significant political shift in the United States.
What was one of the biggest problems facing the US during the 1970s?
Inflation
Inflation rates doubled to ten percent during this decade, significantly impacting families.
What was the inflation rate when Carter took office in 1977?
Five percent per year
Inflation escalated quickly during his presidency.
How much did the cost of living increase between 1968 and 1978?
Doubled
This increase in living costs contributed to economic distress for many families.
What was the cost of a postage stamp in 1974?
Eight cents
The price of postage stamps rose significantly in the following years.
What was the cost of a McDonald’s burger in 1967?
15 cents
This price increased to 50 cents by 1981, reflecting broader inflation trends.
What was the record high for interest rates during the economic downturn?
Around 20 percent
High interest rates discouraged borrowing and investment.
What was the federal minimum wage in 1981?
$3.35
Despite this increase, wages did not keep pace with inflation.
What was the percentage increase in industrial productivity from 1972 to 1978?
Only one percent
This was significantly lower than the average productivity growth in earlier decades.
By how much did real incomes in the USA fall each year from 1973 to 1981?
Two percent
This decline contributed to worsening living standards.
What economic condition did the US experience from 1975?
Stagflation
Stagflation involved high inflation and high unemployment occurring simultaneously.
What was the inflation rate and unemployment rate during the peak of stagflation?
Inflation at 11 percent and unemployment at nine percent
These conditions led to significant economic hardship for families.
What happened to the US standard of living by the mid-1970s?
Fell to fifth in the world
This decline was due to various economic challenges faced during the decade.
What was the impact of foreign competition on traditional industries in the US?
Closed or relocated industrial plants
Many manufacturing jobs moved to areas with cheaper labor costs.
What percentage of manufacturing jobs were in the Northeast and Midwest in 1967?
Two-thirds
This percentage decreased significantly by 1992.
What areas became known as the ‘Rust Belt’?
Northeast and Midwest
These areas faced significant job losses due to industrial decline.
What economic shift occurred regarding wealth distribution in the US?
Wealth began to move to the South and West
This shift was associated with the relocation of businesses and industries.
What is foreclosure?
Foreclosure occurs when a house-buyer fails to keep up with mortgage repayments, leading the lender to take possession of the house instead of repayment of the loan.
How did the federal government respond to homelessness in the 1930s and 1970s?
The federal government supplemented state provision in response to homelessness during the 1930s and again in the 1970s.
What was the impact of the stagflation of the 1970s on poverty levels?
Despite the percentage of the population living in poverty remaining stable at 12 percent, the numerical number of people living in poverty increased due to a rise in population.
Which areas suffered particularly badly from unemployment in the 1970s?
Areas such as the Mississippi Delta and Appalachia, dependent on textile manufacture and coal-mining, suffered particularly badly due to mechanization.
What happened to Philadelphia’s manufacturing jobs between 1951 and 1977?
Manufacturing jobs in Philadelphia fell from 46 percent in 1951 to 24 percent in 1977.
How did Proposition 13 affect state support services in California?
Proposition 13 reduced state taxes by 57 percent, which had a serious impact on state support services like welfare.
What were the causes of the stagflation of the 1970s?
The stagflation was caused by rising federal debt, foreign manufacturing competition, and significant oil crises in 1973 and 1979.
What triggered the oil crisis in 1973?
The Arab-Israeli Yom Kippur War created uncertainty about oil availability, leading OPEC to quadruple the international price of oil.
How did oil prices change from 1973 to 1979?
Oil prices rose from $3 per barrel in 1973 to $34 per barrel by the summer of 1979.
What was the economic impact of the oil crisis on the US?
The US Gross National Product (GNP) dropped by 2.5 percent in the first three quarters of 1973 and fell another 3.2 percent in the winter of 1974 to 1975.
How did American perceptions of the economy change by 1979?
By 1979, 55 percent of Americans believed that ‘next year will be worse than this year,’ and nearly 90 percent believed inflation was a permanent feature of the US economy.
What was the US economy heavily dependent on until the 1970s?
The US economy was heavily dependent on petrol-driven transportation.
What were the cars produced by the US known for before the 1970s?
They were known as ‘gas guzzlers’ and had poor petrol consumption.
What happened to the US car manufacturers in 1974?
The USA’s three biggest car manufacturers laid off 224,000 workers.
Which US car manufacturer faced bankruptcy by 1980?
Chrysler faced bankruptcy and survived through a federal bailout of $1.3 billion.
By how much did car imports rise at the same time Chrysler faced bankruptcy?
Car imports rose by 33 percent.
What was the European Economic Community and when was it created?
The European Economic Community was created in 1957 and included nine European countries after 1973.
Which countries were significant competitors to the US car industry?
Imported cars from West Germany and Japan were significant competitors.
What is the AFL-CIO?
The US national trade union organization created in 1955 from an amalgamation of the American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO).
Traditionally, the AFL represented skilled workers and the CIO semi-skilled and unskilled workers.
What was the economic situation in the USA during the oil crisis of 1973?
Foreign competition increased pressure on US manufacturing, resulting in factory closures and restructuring, which usually involved downsizing and worker redundancies.
What was President Ford’s response to the economic problems in the USA?
Ford attempted a policy of voluntary restraint by businesses and individuals called Whip Inflation Now (WIN) and cut federal spending to curb rising prices.
Unfortunately, these policies failed to address the severe economic problems.
What was the unemployment rate during the economic recession of 1974-75?
Unemployment rose to 11 percent.
What initiatives did Jimmy Carter implement to address the recession?
Carter cut taxes and used public works programs, including the Public Works Act of 1977, to stimulate the economy.
This included a $4 billion public works program and the Earned Income Tax Credit (EITC).
What was the purpose of the Humphrey-Hawkins bill?
The bill aimed to allow the federal government to protect workers’ jobs during economic recessions by becoming the employer of last resort.
What was the National Energy Plan (NEP) announced by Carter?
The NEP outlined the deregulation of natural gas prices and aimed to promote energy conservation and alternative energy sources.
It was not implemented until October 1978.
What was the impact of Carter’s energy policies on US energy consumption?
US energy consumption fell ten percent between 1979 and 1983.
What was the Airline Deregulation Act of 1978?
It abolished the Civil Aeronautics Board to create greater competition in the airline industry.
Similar legislation was introduced for the lorry and communications industries.
What was Carter’s hope for greater market competition?
He hoped it would lead to lower prices for consumers and encourage economic growth.
What was the unemployment rate by late 1978?
Unemployment had dropped to five percent.
What happened to inflation from 1977 to 1978?
Inflation rose from six percent in 1977 to ten percent in 1978.
What was Carter’s approval rating in the summer of 1979?
He was achieving a mere 26 percent approval rating in opinion polls.
What was the main outcome of Carter’s energy policy announced after the Camp David conference?
A programme of research into the production of synthetic fuel to limit US dependence on oil and gas.
What economic issues did Carter face by 1980?
The economy reverted to stagflation, with unemployment at 7.5 percent, mortgage rates at 15 percent, interest rates at an all-time high of 20 percent, and inflation averaging 12-13 percent.
What economic problem did the 1979 Economic Report of the President highlight?
Inflation was identified as a big problem for the US economy.
What plan did the 1979 Economic Report recommend to control inflation?
A plan for the voluntary control of prices and wages.
What was the outcome of the voluntary restraint to control inflation?
It failed to control inflation.
By 1979, what did the American public perceive as the major economic problem?
Inflation, rather than unemployment.
What effect did inflation have on public faith in the Democratic Party by 1979?
The public was losing faith in the Democratic Party.
What foreign policy setbacks did President Carter face?
The Iran Hostage Crisis and the Soviet invasion of Afghanistan.
What was the result of the 1980 presidential elections for Carter?
Carter’s failures helped ensure Democrat defeat.
How many Electoral College votes did Ronald Reagan win in the 1980 elections?
489 Electoral College votes.
How many seats did Democrats lose in the House of Representatives in the 1980 elections?
33 seats.
How many seats did Democrats lose in the Senate in the 1980 elections?
Nine seats.
What did President Carter say about the annual inflation rate in the US during his speech on October 24, 1978?
The annual inflation rate had averaged six and a half percent over the last 10 years.
What was the average inflation rate in the three years before Carter’s inauguration?
An average of eight percent.
What did Carter say would happen if inflation got worse?
Purchasing power would decline, national productivity would suffer, and the value of the dollar would fall in world trade.
How many new jobs were created for American workers during Carter’s presidency?
More than six million new jobs.
By what percentage did Carter’s administration reduce the unemployment rate?
By about 25 percent.
What did Carter acknowledge about inflation in his speech?
Inflation is obviously a serious problem and he does not have all the answers.
