Rent / Price Ratio Data

During the late 1960’s and the early 70’s, America suffered from extreme national inflation. Prices of goods dramatically increased while money decreased in value. Meanwhile, employment rates soared because of the baby boomer population increase. The situation became so chaotic that the term “stagflation” was created to describe what was going on. Stagflation was defined as a period of time with high unemployment and inflation rates. Since there were a majority of Democrats in Congress, Ford wanted to create a grassroots movement in order to influence the government to solve the economic crisis. Ford addressed this problem during a speech in 1974 where he proclaimed, “There is only one point on which all advisers have agreed: We must whip inflation right now” (Ford). Inspired by this speech, large red buttons with the slogan “Whip Inflation Now” were handed out to the public. Many historians agree that this campaign turned into a failure. Ford tried to succeed but the buttons were easily criticized for looking childish and inflation grew throughout the rest of the 70’s. The WIN campaign may have failed but Ford did not give up on the economy. On October 15th 1974, Ford passed the Federal Elections Campaign Act of 1974 which greatly managed political spending for the first time since the 1920’s. After some time, the process to help the economy started to

The obstacles landlords have to overcome causes them to lose their motivation to invest in rental properties and they instead flock towards other housing options to include condominiums, office towers, and hotels.

Carter vetoed a public works package in 1978 in retaliation. Without mutual respect within the branches of the government, compromises and agreements for the domestic issues are hard to reach. The hostility between the two branches deterred progress in the nation’s fragile economy and unemployment. Ford and Carter tackled the perplexing economic issues of the decade, an issue that economists at the time couldn’t even solve. Ford decided to tackle inflation first. His “WIN” plan (Whip Inflation Now” called for an increase in taxes and a reduction of federal spending. To promote this plan, he called for the production of pins with “WIN” on them. This plan did not go well with Congress. Congress eventually passed a bill for a $22 billion tax cut, but it increased government spending on government programs. Ford signed this bill to strive to ease tensions between Congress and himself. In 1975, Congress passed a Revenue Adjustment Act which called for a tax cut and a limit to future spending in the future. It served as a negotiation between the executive and the legislative branches. This was successful in helping inflation; however, unemployment continued to rise. Carter attempted to tackle unemployment first, unlike Ford. Although Carter’s economic decisions helped to reduce unemployment by stimulating the economy, he did not pass any legislation that specifically targeted unemployment. His personal conflict in

This is a result of a demand shift to the left related to a lack of available tenants for the apartments. The property management company has to decrease rental rates allowing the quantity supplied to decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The price of rentals decreased to create less quantity that is available for rent creating equilibrium and a decrease in surplus. This is a difficult decision to lower price significantly but will continue to create revenue for the property management company while decreasing supply of vacancy.

Twenty-five years of broad economic expansion and prosperity comes to an abrupt end in the 70s as it was replaced by crawling growth and inflation. This sudden shift was due two factors; a mix of long term processes and unexpected shocks. Many long term processes contributed to the economic drawback. Manufacturing was gradual declining in the United States relative to the rest of the world after World War II. In 1971, for the first time in the 1900s, the United States was in an export trade deficit. This was partly because the dollar was linked to gold making products more expensive abroad. Nixon took the United States off the gold standard to make American goods cheaper. Unfortunately, this was not very effective because other nations had significantly cheaper labor and raw materials. This growing competition put many firms out of business. This was especially hurtful for the manufacturing industry, which saw a huge decrease of workers. After success in the 50s and 60s such as pensions and paid vacations, many unionized workers also took a hit in 1970s. Many companies started eliminating high paying jobs and moving jobs to cheaper areas of

When the recession happened, and the housing market crashed in Los Angeles a few years back many people lost their homes. The foreclosure crisis displaced many homeowners, drove up demand, and rental prices increased. Now, it is almost two years later, and the dramatic rent increases continue to soar. There would be no issue with cost of living increase except; the increases in income have yet to make the same shifts. “In many cities, rent is rising out reach of

The economy was in trouble because the United States had poured in some 168 billion into the war. During 1962- 1965 there was low inflation, almost full employment, and a favorable balance of trade. President Johnson declared a “War on Poverty” through his “Great Society” programs while escalating the war in Vietnam at the same time. However, his decision to finance both “guns and butter” – a major war and the Great Society simultaneously, without a significant increase in taxes unleashed an acceleration of inflation, when Nixon came into office. Although the real reason for inflation was the high military spending for the Vietnam war, the stall of economic growth had produced a more important matter, economic recession, and high unemployment. Though he did act upon them, his policy

of rent will not increase as quickly as inflation. While the moral side of rent

Economically the 1970s proved to be a turbulent time for the United States. The U.S had been involved in a long and unpopular war in Vietnam since 1965. In 1968, Richard Nixon defeated Democratic Vice-President Hubert Humphrey in one of the closest elections in U.S. history (REF). Nixon eventually achieved a peace agreement to end U.S. involvement in Vietnam, but domestically, his policies damaged the economy. In 1971, Nixon imposed wage and price controls in an attempt to curb inflation, ended the U.S.’s last ties to the gold standard, effectively devalued the dollar, and imposed a 10

Even though most of Nixon’s achievements dealt with foreign affairs, Nixon at the same time dealt with domestic issues too. To begin with, “Nixon wanted to take power away from Congress and federal agencies and give it ‘back to the people’ or at least their elected representatives in state and local government” (Thomas 248). Even though this was Nixon’s goal was to unite America, inflation, unemployment, and Democratic demands all contributed to the further fall of the nation’s economy. To fix this, Nixon came up with a well thought out idea that to his luck, turned out to be a huge economic success. Announcing a wage and price freeze, tax cuts, and a temporary closure of other nations exchanging gold for American dollars resulted in an economic boom, which was in late 1971, and helped Nixon get reelected in 1972. When Nixon resigned from office, the economy was completely down the drain, with rising unemployment and inflation, lengthening gas lines, and a crashing stock market. Although the economy did not thrive under Nixon, he did have many other achievements regarding domestic policies. In 1973, Nixon ended the draft, moving all the United States military to an all-volunteer force. This led more people to join and helped lessen the growing issues of unemployment that spread

The average U.S. citizens could not afford these rates and it played a role in the fall of the Economy. The huge inflation, and the recession that followed, ruined many businesses and damaged countless individuals. Even if Nixon received the Vietnam War and the recession from President Lyndon Johnson, President Richard Nixon still supported this expensive war. Over the decade processing into the late 70s, chairmen’s would constantly change leadership roles and different money restrictions would be implemented into law. The recession would dissipate, but the inflation would still linger into the late 80s.

He gathered a team of economists and presented a blueprint in order to fix the inflation crisis of 1985. Peres proposed a plan to cut the Military budget by 20%. He also appointed on the unions a hiring freeze across the public district while stopping wages and prices and revoking the indexations that made salaries alongside inflation. The stabilization program shortly proved a great success.

number jumped significantly to 12% in 1973, and continued to greatly rise to 24% in

This story is about the most complicated issue I have personally had to solve and what I learned from it. The most complicated issue I have personally had to solve would be a problem I am still working on today. I am a manager and partner in a duplex rental business called Firenza Properties. I am responsible for 2 duplexes, making sure rent is paid and maintenance is done. I have had one of the most frustrating problems a manager can have since day 1: unpaid rent.

Wage and price controls were enforced in the United States during World War I, World War II, the Korean War, and the Vietnam War. In 1942 the United States government began wage and price controls in order to help win World War II and maintain the general quality of life. The Office of Price Administration (OPA) was established in 1941 and their mission was to avoid profiteering and inflation as goods became in short supply in the United States due to the war. The Emergency Price Control Act of 1942 gave the OPA the ability to regulate prices in the marketplace, and brought 60 percent of all civilian food items under a form of control which froze prices at their store-by-store March 1942 levels. (Wage-Price Control, 2008)