Asked by Brooke Lewis on May 08, 2024
Verified
In the twentieth century, the 1970s was the only decade besides the 1930s in which Americans on average were poorer at the end of the decade than when it began. Compare the economic crisis of the 1970s with that of the 1930s. What were the causes of each? How did the government respond to each crisis? How was labor affected in each decade? What eventually turned the economy around in each case?
Economic Crisis
A situation where a country's economy experiences a sudden downturn brought on by a financial market crisis, leading to a decrease in consumer confidence and economic activities.
1970s
The decade from 1970 to 1979, characterized by significant cultural, political, and technological changes worldwide, including the end of the Vietnam War and the rise of environmentalism.
1930s
The 1930s was a decade marked by the Great Depression, a global economic downturn, and significant social, political, and cultural changes, leading up to World War II.
- Analyze the factors and outcomes of critical domestic and international incidents of the time, such as the Vietnam War, My Lai Massacre, and the Pentagon Papers.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
The economic crisis of the 1970s in the United States was characterized by high inflation, high unemployment, and slow economic growth, a phenomenon known as stagflation. This was caused by a combination of factors including the oil crisis of 1973, which led to a sharp increase in oil prices, as well as the end of the post-World War II economic boom and the decline of American manufacturing. The government responded to the crisis with a mix of monetary and fiscal policies, including the establishment of the Federal Reserve's dual mandate to control inflation and unemployment. Labor was heavily affected by the crisis, with many workers facing job losses and stagnant wages.
In contrast, the economic crisis of the 1930s, known as the Great Depression, was caused by the stock market crash of 1929, which led to widespread bank failures, a collapse in consumer spending, and a severe contraction in industrial production. The government responded with the New Deal, a series of programs and reforms aimed at providing relief, recovery, and reform, including the establishment of social security and the creation of public works projects to create jobs. Labor was also heavily affected, with unemployment reaching as high as 25%.
In both cases, the economy eventually turned around through a combination of government intervention, technological innovation, and increased consumer spending. In the 1970s, the economy eventually recovered due to the implementation of new economic policies and the development of new industries, such as technology and finance. In the 1930s, the economy turned around due to the massive government spending on public works projects and the mobilization of the economy for World War II.
In contrast, the economic crisis of the 1930s, known as the Great Depression, was caused by the stock market crash of 1929, which led to widespread bank failures, a collapse in consumer spending, and a severe contraction in industrial production. The government responded with the New Deal, a series of programs and reforms aimed at providing relief, recovery, and reform, including the establishment of social security and the creation of public works projects to create jobs. Labor was also heavily affected, with unemployment reaching as high as 25%.
In both cases, the economy eventually turned around through a combination of government intervention, technological innovation, and increased consumer spending. In the 1970s, the economy eventually recovered due to the implementation of new economic policies and the development of new industries, such as technology and finance. In the 1930s, the economy turned around due to the massive government spending on public works projects and the mobilization of the economy for World War II.
Learning Objectives
- Analyze the factors and outcomes of critical domestic and international incidents of the time, such as the Vietnam War, My Lai Massacre, and the Pentagon Papers.