1970's+Business+and+Economy

status add notes"1970's Business and Economy  » By Thanh Pham and Kevin Pham toc = **Over View ** = During the 1970's, the United States suffered through numerous economic hardships that lead to the transformation of the economy to what it is today. America's economy during this time was heavily dependent on oil and large manufacturing companies. This lead to it's collapse due to price variations,shifts in the economic market, and consumer's preferences.
 * [[image:http://www.corbisimages.com/images/Corbis-BE066162.jpg?size=67&uid=3e2bffb1-825b-49b3-a9c4-4a7ee0cd3d5a caption="Steelworkers in Protest-Corbis Images"]] ||
 * Steelworkers in Protest-Corbis Images ||

= Declining Economy = United States' part in the Vietnam War and the fundings for [|Lyndon B. Johnson]'s [|Great Society Welfare Programs] for the disabled and poor promoted inflation.The government supported war efforts in Vietnam through unpopular taxes.Inflation and high unemployment rates contributed to what became known as [|Stagflation](Time of immense inflation on prices of products, high unemployment rates,and slow economic growth).The percentage of citizens without jobs stayed between 5.4 t0 9.8%.During this time a 32% inflation on food prices and general products occurred. Federal District and State Trade Balances experienced the most severe recession since World War II.

= Work Unions = Union banded together to protest low wages and unemployment were completely ignored by the government.In failing times, workers who protested for better wages were laid off by industries because of the lack of funds to support production.Unions were usually corrupted and had no effects on the lives of it's members.At the end of the decade,unions had fewer supporters and lesser power than they had before.
 * [[image:http://www.corbisimages.com/images/Corbis-BE067805.jpg?size=67&uid=ffafbd4a-706e-42eb-94c3-9ab346675b13 caption="General Motors Employees Prepare Strike-Corbis Images"]] ||
 * General Motors Employees Prepare Strike-Corbis Images ||

= Economic Stabilization Act of 1970 = With the nation in dire economic state, President [|Richard Nixon] proposed the [|Economic Stabilization Act]. This act allowed the president the power to control wages,pricing,and Salaries.This act contained four phases in total.Phase I,the Office of Emergency Preparedness initiated a 90-day freeze on prices and wages.Phase II, the [|Cost of Living Council Committee] got involved in controlling market prices and wages. Phase III, the council created another freeze to stabilize the economy. Phase IV,The [|council*]was to relinquish control and was abolished.This plan was successful and caused the economy to temporarily improve for the next 3 years.


 * [[image:http://www.corbisimages.com/images/Corbis-IH166356.jpg?size=67&uid=d0b25957-5abf-48c0-b6ef-ac2b918036e3 caption="Richard M. Nixon-Corbis Images"]] ||
 * Richard M. Nixon-Corbis Images ||

= = = Revenue Act of 1971 = President [|Richard Nixon] lowered the unemployment rate even further by signing the Revenue Act (Reference)[|(1)] [|(2] which cut taxes for the nation.This act created jobs for many citizens by encouraging business owners to buy and increase productivity. This will create a basis for salaries and wages and will not off set the standard amount. = =

= Oil Embargo = On October 20th, 1973, the [|Organization Of Arab Petroleum Exporting Countries](OAPEC) declared an oil [|embargo] that caused a massive fuel shortage and the price of oil to sky rocket. This also caused billions of dollars increase on petroleum-based products and limits on oil consumption to the public. Governments limited 55MPH speed on it's highways, mandating fuel standard for cars. Shortage on oil and fuel were so great that cars had to line up in elongated lines to recieve gas and even then had to pay a huge cost for just one gallon.
 * [[image:http://www.corbisimages.com/images/Corbis-42-20041537.jpg?size=67&uid=5df53551-f2b4-414e-92a3-d9f19d4e7ada caption="Oil Shortage Crisis-Corbis Images"]] ||
 * Oil Shortage Crisis-Corbis Images ||

= <span style="font-family: 'Courier New',Courier,monospace; font-size: 22px;">Auto Industry = <span style="background-color: #ffffff; font-family: 'Courier New',Courier,monospace; font-size: 15px;">Auto companies were suffering from the oil shortage causing the sale of cars to drop drastically and foreign manufacturers. During this time, fuel efficient cars were most popular and this forced companies to redesign on short notices which lead to many of those cars to be recalled.This gave an opportunity for Japanese auto makers to take over the auto industry by creating luxury cars that gave more profit. They also began establish production in the United States.
 * [[image:http://www.corbisimages.com/images/Corbis-42-18213223.jpg?size=67&uid=980c5157-4975-435c-af51-d9eeefb1522d caption="Recession Crisis-Corbis Images"]] ||
 * Recession Crisis-Corbis Images ||

= <span style="font-family: 'Courier New',Courier,monospace; font-size: 21px;">Oil and Energy Crisis = <span style="background-color: #ffffff; display: block; font-family: 'courier new',courier,monospace; font-size: 15px; text-align: left;">After the embargo, it proved how dependent the country was to oil production from foreign countries.The embargo was lifted on march 1974, about one year after it had began.As result of the embargo, countries around the world (U.S included) keeps [|Strategic Petroleum Reserve] in<span style="font-family: 'Courier New',Courier,monospace;"> preparations for a future oil shortage. This oil was only to be used during an energy emergency and would be sold by competitive sale.

= <span style="font-family: 'Courier New',Courier,monospace; font-size: 22px;">New Era of Business and Economy = <span style="background-color: #ffffff; font-family: 'Courier New',Courier,monospace; font-size: 15px;">The destruction of large manufacturers gave rise to small businesses such as Apple,Microsoft,and Nikes.Businesses that were already established continued to increase.Apple and Microsoft were electronic-based businesses that was gaining popularity and Nikes helped introduced fashion in shoes.

= <span style="font-family: 'Courier New',Courier,monospace; font-size: 29px;">Citations =

<span style="background-color: #ffffff; font-family: 'Courier New',Courier,monospace; font-size: 21px;">1970's Business and Economy.Enotes.ITT Technical Institute.Enotes.com.January 6th, 2012

<span style="background-color: #ffffff; font-family: 'Courier New',Courier,monospace; font-size: 21px;">Business:1970's:The Year of the Hangover.Times.CNN,CNNMoney,Life.Times.com.January 6th,2012

<span style="background-color: #ffffff; font-family: 'Courier New',Courier,monospace; font-size: 21px;">Stagflation in the 1970's.Economics.NewYorkTimesCompany.Economics.about.com.Jaunary 6th,2012