Question

To what degree did foreign policy issues affect politics and the economy in the United States in the late 1960s and 1970s?​

Answer 1

During the late 1960s and 1970s ,the foreign policy issues lead to a dramatic and dynamic impact on the political and economical scenario of US.In the early 60s and after,the US followed a policy of containment and detente.It was also involved in wars with vietnam and cold war.It had to depend on gulf and other countries for its energy requirements and fulfilling war requirements.The success and failures on these grounds lead to a change in the political leadership between democrats and the republicans.The policies of these parties laid widespread social,political and economic implications.The US also had to face challenges from soviet union and china.The major US production was tied to war supporting,imported low cost raw materials.The downfall of pro-US government in the Iran lead to several problems.The economic scenario was doldrum,inflation soared,less savings,high unemployments,low growth and energy crisis as the Iran authorities has now become hostile to US.The war with vietnam also resulted in loss in American resources.

At the same time period,the Bretton woods system of exchange of currency collapsed and now the US dollar was covertible into gold.This lead to fall in dollar.Imports became more expensive.This further helped in boosting American exports.Further with proper and balanced economic policies and effort helped in a positive economic growth.The unemployment was under 5% and real GDP grew with about 6% annual rate.In the long term,with ups and downs,America survived and it emerged as a super power.