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The Economic Effects Of Stagflation In The 1970's

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In the 1970s, the United States suffered an economic phenomenon that resulted in heightened unemployment, inflation, and a recession. President Richard M. Nixon was in office for majority of the decade, the economy was in turmoil, and the citizens were feeling less united. The recession at the beginning of the decade, mid-way through Nixon’s first presidential term, paved the way for the economic devastation to come. A third of the way through the decade, was the result of the worst combination of disasters for any economy to date. The most notorious White House scandal and an attempt to regain control of the market topped the most remembered list of the 1970s, followed by another recession. The 1970’s is a decade for the record books.
Stagflation is generally defined as stagnant, or slowed, economic growth and relatively high unemployment with an outrageous rise in prices, or inflation; or as inflation with a decline in Gross Domestic Product (GDP). Between 1973 and 1981, the United States experienced a significant case of stagflation. Early 1970s, a dispute between Israel and neighboring Egypt and Syria created tension, and the Middle Eastern Arab states assisted Israel which in turn hiked oil prices and put a stop to oil exports to the United States, oil prices skyrocketed globally. In 1973, American gas stations either limited the amount or ran out of fuel for consumers. The same thing happened again in 1979 due to the overthrowing of the Shah of Iran. Natural resources
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