The Economic Effects Of Stagflation In The 1970's

Towards the end of the 1920’s the economy in America took a drastic turn. This was when Calvin Coolidge’s presidency had ended and changes in the government began to take place. “Just seven months after Herbert Hoover entered the White House, economic trouble mocked his campaign statement about being near ‘the final triumph over poverty.’ On October 24, 1929 panic swept the New York Stock Exchange as nearly 13 million shares changed hands” (Hamilton). The start to Hoover’s presidency was also the start of the Great Depression. His term consisted heavily on working on taking steps to bring America out of the drastic economic fall that they had just entered. He began taking action by launching public works programs, tax reductions, and the formation

During the 1930’s, the United States of America was captivated by a economical, financial, and social depression as a result of the Stock Market crash in October of 1929. Many people were left with almost no money, no job, and great deal of debt. When elected in 1932, Franklin Delano Roosevelt took over the White House and implemented his “New Deal” policy that established many different legislations, administrations, and agencies in efforts to bring back American jobs, money, and prosperity.

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

This country has seen some of the most dramatic changes in technology, the economy, and global dominance to ever occur in America’s history. Times were good during the 1920s as the economy was booming and unemployment was low. However, the market was being overinflated and the pace of economic growth could not be sustained and in 1929 the stock market started dropping significantly. The entire country turned into a panic and the whole economy was being dragged down while unemployment skyrocketed. During the 1930s, America went through the worst depression in recent history. Lawmakers scrambled to figure out how to solve this

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

When President Hoover entered office in 1929, stock market prices were at all time highs and the American economy prospered. Suddenly, in October of 1929, the stock market crashed and thousands of Americans lost their entire life savings. The crash sparked the most horrific and devastating economic crisis of all time. In the tedious years to follow, records suggest that stock prices fell “about 80% from their highs in the late 1920s” (Stock Market Crash). Soon after Black Tuesday, the United States economy crumbled to pieces. Many people became unemployed and homeless. Through the course of a decade, Presidents Herbert Hoover and Franklin Roosevelt tried and failed to bring an end to the Great Depression with their own domestic policies and political ideals. Before Hoover’s election, federal administrators praised his humanitarian spirit. When Hoover became president, he fell short of his glowing reputation and failed to recognize the severity of the situation America was facing. The nation felt out of touch with their commander-in-chief and in the presidential election of 1932, Hoover was squarely defeated by his popular Democratic opponent, Franklin Delano Roosevelt who promised a “New Deal” to the suffering American people. The Great Depression was a long and difficult time for many Americans ended only by the beginning of World War II. Two utterly different presidents guided America through the worst financial crisis ever seen with two different policies, two

The seventies is often seen as a lost decade, merged between the optimistic sixties and the opportunistic eighties. Bruce J. Schulman argues, in his book titled, “The Seventies: The Great Shift in American Culture”, that this period ignores changes brought by the 1970s. This period brought changes in the economy, shifts in culture, politics, race, family and religious values. The United States faced many transformations that helped shape our country to this day. Schulman begins to explain his thesis, “The Seventies transformed American economic and cultural life as much as, if not more than, the revolutions in manners and morals of the 1920s and the 1960s.” The information that I will present will summarize the changes that affected the United

The '70 's were not the best of years. For nearly an entire decade, serious inflation and unemployment on

From where did the vigor of the 1980’s come? 1980 to 1989 was a period in the United States which spurred hope for the economy and in the spirits of the people. The 1980’s were a decade of the American people standing together in tragedy and rejoicing with each other in victory. In 1989, the fall of the Berlin Wall marked the end of the decade and an age of an oppression overseas. America cheered for the freedom of her brothers and sisters in Germany. One highlight of the 1980’s was the substantial growth of the economy through Reaganomics, President Reagan’s principles of economics. In television, the show Family Ties depicted an average family at the time, who supported each other despite their wide range of beliefs and ideals. Why was this time in America so great? The people of the nation believed in her, and America gave her people reason to believe.

It was the year of 1934. America was fighting to come out from the worst economic crisis that the world would ever witness. It was also the year of high crime rate, low Gross Domestic Product and the lowest unemployment rate America had experienced. The Depression had paralyzed American labor forces, but there was a hope still alive in every American including J.D. Rockefeller when he said, “These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again” (Rockefeller). At that time, the next president named Franklin D. Roosevelt, famous as FDR, brought Americans back to work through his confident efforts and new series of programs called ‘the New Deal’.

They maintain their productivity and civic spirit in a world changing due to technology and automation. Nixon prattles about American productivity and work ethic because the US was going through an economic recession. Nixon addresses the various concerns Americans have over the declining economy. He acknowledges the changes occurring to the labor force and economy.

Preceding the Great Depression, the United States went through a glorious age of prosperity, with a booming market, social changes, and urbanization; America was changing. At the end of the 1920’s and well through the 1930’s, America was faced with its greatest challenge yet; the 1929 stock market crash. It would be the end of the prosperity of the “Roaring Twenties”. Now the American government and its citizens were faced with a failing economy. President Herbert Hoover was clueless to how to approach the problem. Hoover believed that government works best when it governs less, and should not intervene in the economy. Traditionally, he stayed out the issue hoping that the economy would fix itself; it didn’t. Hoover’s inaction makes his presidency look ineffective as if he caused the Great Depression. Franklin Delano Roosevelt (FDR) succeeded Hoover as president. Like Hoover, FDR didn’t know exactly how to help the economy. Unlike Hoover, FDR introduced experimental ideas and programs to help solve the issue. These ideas and programs would become a part of Roosevelt 's policies known as the New Deal which sought to fix America’s economic struggles. Despite short term successes, the New Deal implemented during the 1930 's by FDR did not lift the United States out of the Great Depression. Instead by intervening in the economy, and creating huge debt, the New Deal prolonged the Great Depression.

This happened to be one of the greatest economic crisis’s sin the Great Depression of the 1930s. The aspects of the country Reagan was confronted with was “high unemployment, major energy shortages, interest rates of over 21 percent, and inflation at 12.5 percent” (Meese III, 2011). The policies and practices at hand was to first, deal with the economy. The first task was to balance the budget of California, he later employed the same theories to develop the visualization for answering America’s economic challenges.

In America there have been great economic struggles and triumphs. The many great leaders of this country have foraged, failed, and overcome some very difficult times. Comparing the Great Depression of 1929 and the Great Recession of 2008 has revealed similarities that by learning from our mistakes in 1929 could have prevented the latest recession. I will discuss the causes of the Great Depression and the Great Recession, and what policies were implemented to reverse the economic downfalls.

Look deep within United States history to find its most significant molding element and one will find that its source stemmed from a great national crisis. At its highest extent, nearly one-fourth of its labor force was unemployed and American confidence in itself was deeply shaken. It is in studying the Great Depression and President Franklin Delano Roosevelt’s New Deal, that America’s most significant influential event can be found. The New Deal and its legacy had the largest impact on American society since the founding of the United States. The New Deal altered the political and social nature of the nation as well as preserved the fundamental capitalist nature of the American economy.