Topic 3 - Impact Of Ecnomic Change On Society Flashcards
What was the consequence of inflation in this era?
-mortgages
-loans
-food
-energy
All became more expensive
Cost of living rose yearly at 8.2% between 1973-83
What area was worst hit by inflation and why was this?
Rust belt - term used to describe area of declining manufacturing output
What caused unemployment through the decade?
- Other countries were producing manufactured goods at lower prices
- Increased mechanisation meant that one machine could do 10 people’s jobs
What happened to minimum wage?
Rose from $2.10 in 1975 to $3.35 in 1981 however it did not match the rise in prices
What happened to the female role in the 1970’s?
Many mothers had to work in order to maintain the usual family income. 38% worked in 1960, 52% in 1980
What effect did unemployment have on society?
Citizens living below poverty line increased from 11.2% in 1974 to 12.5% in 1976
What factors led to inflation between 1973-80?
Vietnam war and great society raised federal gov deficit from $1.6 billion in 1965 to $25.3 billion in 1968
Who was worst effected by homelessness?
Black population
What were the main causes for the rise in homelessness?
- During 1970’s institutions for mentally ill decreased (due to costs). Many former residents needed up on the streets
- Inner city hotels started to be demolished. Lack of alternatives led to homelessness
- Rising unemployment
- Increase in single mothers with no support
- Increased use of cocaine
What had the USA become and what impact did this have on the world?
They had become energy deficient (needed more E every than they could produce). Consumed 1/3 of worlds oil population
What was one of the main causes of the oil crisis?
Nixon’s support of Israel in the Yom Kippur War led to an oil embargo being introduced on the USA. Embargo ended but led to a 387% hike in oil prices
What effect did the oil crisis have?
- Heating, oil and petrol cost 30% more for public
- 1974 strike. of 100k truckers demanding lower fuel prices lead to nations roads being bought to a standstill and shelves being empty for 11 days
- Gas shortage between 1976-77 caused closure of schools and factories
- 1979 half the nations petrol stations were without fuel
What did the government try to do to stop the country consuming so much fuel and did it work?
Carter launched campaigns to save fuel by lowering thermostats to 18˚C in winter. Did not work as country still consumed ridiculous amount of
How did the USA cope foreign competition?
Badly - they struggled against superior tech of Germany and Japan
What Impact did foreign competition have on society?
- Unemployment rose
- Trade deficit rose to $40 billion by 1978
- Foreign cars were more popular than American ones resulting in Chrysler needing a bailout in 1980
- 24% of Detriot population were unemployed in 1980
