Stagflation| 1950s- 20th Century Flashcards
economic prospects of USA, effects on Presidency etc.
Define ‘stagflation’.
High inflation, high unemployment
- Low economic income.
Tier 2:
Define stagnated.
Slowed down.
What was the US’ position in the early 20th century?
Development of technology and goods;
- Cars, fridges, televisions.
In 1953, what percentage was US’ share of the world exports of manufactured goods?
29%
What country came to dominate electronics?
Japan.
What rose as a result of inflation?
Costs of raw materials.
What did the rise of inflation mean for businesses?
Less invests in improving technology.
What did failing businesses mean?
Rise in unemployment.
What was the government action like in a nutshell?
Ineffectual.
Outline key points of the ‘failed’ government action.
Federal spending was too high (CPI), aftermath of Vietnam War- unable to used the non-existent ‘saved money’.
What is CPI?
Consumer Price Index- shows the cost of how basic foods (milk, butter, bread, meat and eggs) varies from year to year.
There were fuel crises in the 1970s.
What is OPEC?
how many members did it consist of?
(OPEC) Organisation of Petroleum Exporting Countries.
13, now 12, countries.
Name the active presidents in this period.
Reagan, Nixon, Carter.
What act did Nixon put out to ‘stabilise the economy’?
1970 Economic Stability Act
Who intiated the 60-day price freeze?
Nixon- to give time to Congress to act on his request.
What is the Fed?
Independent decision making- far from government intervention.
What other act did Nixon put out in 1971?
Emergency Employment Act- ‘community service’.
What is consumer confidence?
The measurement of which the consumers are confident to buy in terms of their country’s state or their own financial situation.
What factors can affect spending?
- Trade, war and conflict, depression, economic news, unemployment, inflation and real wages, uncertainty.
What are tariffs?
Taxes posed on consumer goods.
