6 Mai 1967 Jahr - Economy

Beschreibung:

Inflation Rose 9% from 1967-1974 and the unemployment rate rose 3% from 1969-1970.
Inflation remained in the double digits through the '70s.

Stagflation
Root Causes:
* Government ran up huge federal deficit trying to fund the Vietnam War and Johnson’s
Great Society – no tax increases
* Competition from foreign markets; Japan, West Germany – trade deficit
* Dependency on cheap energy sources
* The surplus of labor; baby boomers, women
* Productivity declined

Oil Embargo:
* Emergency Highway Conservation Act (’74)
* Colleges and Universities extended winter breaks
* Alternative Energy Sources
* Conservation, caused the speed limits to decrease and college spring breaks and winter breaks were created because of this.

Organization of Petroleum Exporting Countries – In 1973, the US sent aid to Israel during the
Yom Kippur War. OPEC announced it would not sell oil to nations that aided Israel and they
raised prices by nearly 400%.

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