Topic 5: Ronald Reagan's Presidency (1981-1996) Flashcards
Explain the economic issues that plagued 1970s America.
Stagflation created a series of problems for America during the 1970s, with inflation reaching 13.5% whilst wages remained stagnant, reducing living standards. This, coupled with the 20% interest rate, had a significant impact on the livelihoods of many American families who found themselves in another economic crisis. The Oil Crisis of 1979 also contributed to widespread panic due to the shortages of oil coming from the East, as well as businesses increasing prices as a result of the spike in demand. This meant people were waiting in ridiculous queues to purchase oil for their cars in order to go about their days, which meant the shift from ‘American Muscle’ vehicles such as the Mustangs, Cadillacs and Chevrolets to more fuel-efficient makes imported from Japan and Europe.
Explain the social issues that plagued 1970s America.
Society had become disillusioned and fragmented during this period as a result of several factors , including the outcome of the Vietnam War which spanned two decades and was officially ended in 1975. This was the first occasion in which America had lost a war, with the soldiers returning home were not met with the treatment of heroes as in previous conflicts.
