The impact of economic change on society Flashcards
what was USA’s economic position like post the war ?
- they were the worlds 2nd wealthiest country
what worrying economic trends began by the 60’s?
- although US led the worlds manufacturing their industries were in decline
- federal government deficit increased from $1.6 billion in 1965 to $25.3 billion in 1968 due to the expenses of the Vietnam war and the great society. this caused inflation.
- inflation rose mostly due to increased oil prices and federal gov over spending
when did America suffer from unprecedented inflation?
between 1973-80 and inflation was in or near double figures during that decade.
what was made more expensive due to inflation?
- food
- loans
-mortgages - and energy
in 1974 alone prices rose by 3.7 %
what did opinion polls show about inflation?
- 1978 polls showed that 63% of Americans thought inflation was their biggest concern.
how much did the cost of living rise between 1973 - 1983?
- 8.3%
who was the hardest hit by inflation?
- the areas of declining manufacturing industries known as the rust belt.
how much did employment rise across the decade (1970-1980) `
- 8.9%
what were the reasons for increased unemployment?
- countries were producing manufactured goods at lower prices and often superior quality.
- increasing mechanisation in American industry; men were replace by machines.
how much did service jobs increase from (1970-80) ?
60% in 1970
70% in 1980
however many were low paid.
although the minimum wage increased during this period what happened to the role of women during this decade?
they had to work to maintain the family income
how many people lived bellow the poverty line between 1974 - 76?
- 11.2% - 12.5%
- this included 50% of all black female heads of the household.
how many homeless people were there in 1980?
est. 200,000 - 1,000,000m.
what were the reasons for increased homelessness?
- number of institutions for mentally ill decreased ( the abolition of involuntary mental hospitalisation campaigned to give greater personal freedom,)
- urban renewal policies many inner city hotels had been demolished leaving people without homes
- rising unemployment
- number of homeless women increased due to more independence lack of support from partners
- increased use of crack cocaine.
roughly 30% of the oil Americans used came from the middle-east. how did Nixon expose America’s economic vulnerability?
- his support of Israel in the Yom Kippur war 1973
- this led to an embargo (ban of trade) on oil for the united states.
- when the embargo ended there was a 387 % hike in the price which damaged the american’s economy.
- e.g. Americans now paid 30% more for heating
who went on strike in 1974? and why?
- 1974 a strike by 100,000 independent truckers demanding lower fuel prices, causing stores to be empty for 11 days
what was the significance of the energy crisis?
- end of a cheap oil era for Americans
- provided politicians with an insoluble problem
what was the impact of foreign competitors?
- contributed to a sense of economic decline from the mid 1970’s
- they struggled against Germany and Japan who were technologically superior.
- increased foreign competition led to increased unemployment.
- inexpensive Japanese cars attracted Americans which saw a decline in the american car industry.
what was Ford’s response to increased economic problems?
- he asked american’s to voluntarially cut their millage by 5%
- stop chucking out food
- and distributed WIN (whip inflation now) buttons
(most americans rejected his suggestions.) - he cut federal expendeture and wanted to raise tax but this made him unpopular so instead he cut taxes
what did Ford’s response to economic challenges cause?
- it meant that oil prices could rise a little bit and this made oil consumption decrease slightly.
- this helped bring the economy out of the reccession.
what was Carter’s response to inflation?
- he adopted a standard method for decreasing inflation and decreased gov expenditure and urged voluntary wage and price controls in the private sector.
how did people respond to Carter’s attempt to mend the economic challenges?
- blue-collar workers who traditionally voted democrat disliked this focus on inflation rather than unemployment,they also disliked his criticism of miners in 1977.
- the business community distrusted Carter they feared his energy proposals would damage industry
carter tried harder than any president to solve the energy crisis. what did he propose?
- he wanted to end the dependence on the unstable middle-east and in April 1977 he proposed;
- oil conservation e.g. cutting down on travel
- development of alternative power sources
- higher taxes on large automobiles
- greater insulation in homes and workplaces.
why did Carter’s energy proposals meet opposition with in the senate?
- he had drawn it up with insufficient consultation and lobbying
- states where automobiles and natural gases were produced opposed
- voters did not want to pay higher taxes.
what did the OPEC do in 1979?
- raised oil prices
- and Carter continued to call for actions to reduce dependence on foreign oil.
what is an example of congress responding to some of Carter’s suggestions?
- Energy security act 1980 which offered loans and incentives to promote the search and use of alternative energy.
why was Carter’s suggestion that Nuclear power was one route in solving the energy crisis unpopular?
- 1979 nuclear meltdown at Pennsylvania’s three mile island reactor
- protests went on to get nuclear stations shut down.
how of the worlds oil production did America consume?
- they made up 6% of the population
- and consumed 1/3 of oil production.
what did the harsh winter 1976-77, caused by the oil crisis, impact US society?
- natural gas shortage led schools to close and factories especially in east USA
- late 1977 the united mine workers 165,000 of them began a three month strike
what happened to the supply and price of petrol due to the oil crisis?
- 1979 half of US petrol stations were without fuel and those who had it were charging 50% more than before
