Question

(TCO 5) Discuss the origins and consequences of the economic troubles Americans faced in the 1970s. How did Presidents Carter and Reagan respond to these problems?

Answer 1

The significant issue that the US looked during the 1970s was financial. This was the issue of "stagflation." Stagflation is a monetary issue in which there is both high swelling and high joblessness.

Stagflation came to fruition due to an assortment of elements. A standout amongst the most critical of these elements was the colossal government spending that was left over from the Johnson years. The spending on "Incredible Society" programs and the Vietnam War was a noteworthy reason for the stagflation. The other real reason for the stagflation was oil. Oil costs bounced and supplies fell amid two emergencies during the '70s. Between them, oil costs and the crazy government spending caused stagflation.

Presumably the general population who experienced the Recession of 1975 would portray it as the most critical issue. Coming after the oil ban by OPEC after the American government chose to resupply the Israel military amid the Yom Kippur wars, a ban which made an oil deficiency in the nation, and in addition driving gas costs up, the monetary subsidence put numerous individuals out of work after various organizations and immense loft edifices and improvements went bankrupt. What's more, with twofold digit-expansion amid the Carter administration, the economy was in a ruins.

President Carter considered it an "Emergency of Confidence". Americans lost confidence in government through Vietnam and Watergate. They lost confidence in the economy through cutbacks, stagflation and a conspicuous oil reliance, and our powerlessness to acquire the opportunity of our prisoners in Iran, even following a time of arrangements. We felt feeble, helpless, and barren. This influenced everything else in the nation from interests in money markets to customer spending, and added to the bigger issues we had during the 1970s.