Question

(25 POINTS!!!!) The 1970s saw significant negative impacts on the US economy. Analyze one cause and two examples of this economic downturn.

make it 1/2 paragraphs pls!!

Answer 1

The 1970s economic downturn is regarded as one of the most important economic crises in US history. This decline was caused by a number of factors, including high inflation rates, trade imbalances, and oil shocks. The oil shocks of 1973 and 1979 were one of the key causes of this decline. Arab states imposed an oil embargo on the United States in 1973 in retaliation for US support for Israel during the Yom Kippur War. This embargo resulted in a major increase in oil prices, which resulted in significant increases in the cost of life and production. As a result, the US economy experienced stagflation, which is characterized by high inflation rates along with high unemployment rates. The 1979 oil shocks triggered a similar crisis as a result of the Iranian Revolution, which resulted in the cessation of Iranian oil shipments. The loss of manufacturing industries was the second illustration of the 1970s economic crisis. The United States had long been a manufacturing superpower, but as global competition and technical developments increased, American production declined. This decrease was most noticeable in the car and steel industries, which were the backbone of the US economy at the time. These industries' fall resulted in enormous job losses, which exacerbated the economic downturn.

Answer 2

Step-by-step explanation:

The 1970s saw some of the highest rates of inflation in the United States in recent history, with interest rates rising in turn to nearly 20%. One negative impact in the US economy was unemployment. Between 1968 and 1978, unemployment rose by 33%. The stock market have lost nearly 50% in two years, which meant that economic growth was weak. This led to rising unemployment that eventually impacted hundreds. As a result, Americans have less purchasing power.