2. The impact of economic change on society

63%

Americans considered inflation their greatest concern

1973-1983: The cost of living rose…

Yearly average 8.2%

Who were hardest hit by the rising cost of living?

Those who lived in declining manufacturing output ‘Rust Belt’

Why was there increasing unemployment during 1970’s?

Other countries goods were more competitive

Machines were replacing humans

Where was there increasing unemployment in the 1970’s?

Car manufacturing in Detroit

Steel production in Pennsylvania

1960: 38% and 1980: 52%

Of women worked because the family income was too low as minimum wage was low

1975: $2.10 1981 $3.35

Minimum wage increase

1974: 11.2% 1976: 12.5%

Americans living below the poverty line

50%

All black female heads of the household living below poverty lines

1976: 18.5mil 1980: 20mil

Food stamp recipients

200,000-1mil

People homeless in 1980

What was the impact of mental health institutions closing in the mid 1970’s

1973 federal district ruling: patients paid for their work that kept the institution alive

Many hospitals struggle to financially operate and conservatives didnt want to fund

Many closed, left people homeless

What was the impact of urban renewal policies?

Demolish ‘skid row’ hotels

Poor residents lost cheap accomodation and struggled to find alternatives: left homeless

What did unemployment and welfare cuts cause many to feel?

Depressed and hopeless

How did crack cocaine affect homelessness?

Addicts spent money on drugs and couldnt afford housing

What caused the oil crisis?

Americans were 6% of the world population consuming 1/3 of the world’s oil

30% of U.S oil was imported mainly from the middle east

What was the OPEC Oil Embargo 1973?

Triggered by Nixon supporting Isr*el during the Yom Kippur War

Organisation of Petroleum Exporting Countries imposed an oil embargo on the US

What is an embargo?

An official government-imposed ban or restriction on trade and commerce with a specific country or region

What happened after the 1973 Embargo?

Oil prices rose by 387%

Americans paid 30% more for petrol and heating oil

What was the 1974 Truckers Strike?

100,000 independent truckers struck for lower fuel prices

Roads disrupted for 11 days

How did the oil crisis impact America during the winter 1976-77?

Natural gas shortages

Schols and factories closed

Petrol stations closed on Sundays and long petrol station queues developed

1979: 50% more

What petrol stations charged compared to the previous year

What was the Levittown Energy Riot in 1977?

First US energy riot

Truckers barricaded expressways

100 injured and 170 arrested over two nights

Why did the United Mine Workers Strike in 1977-78?

165,000

3 month strike

Energy shortges cause: school closures and reduces working weeks in Eastern U.S

How did the Energy Crisis affect the economy?

Ended era of cheap energy

1/3 inflation linked to rising oil prices

What did cheap oil show?

Post war prosperity

Economic growth

Suburbanisation

Consumerism

How did the oil crisis effect politics?

Politicians raise oil taxes to reduce consumption: unpopular

Political disillusionment

What did Carter recommend in 1977 in response to the energy crisis?

18 degree max indoor heating during winter

26 degree minimum air conditioning during summer

How did people adapt to the Energy crisis?

Gov buildings listen to Carter

Factories reduced working hours

But energy consumption high overall

1970’s US produced ___% of the world’s manufactured goods

25%

Compettion from Germany and Japan led to…

Rising unemployment

Growing trade defecit

What was the annual US trade deficit in 1978-79?

$40bil

23%

Japanese manufacturers held US car market

How did the oil crisis effect employment?

1978: 940,000 permanent automobile industry jobs

1982: 500,000

How did the decrease in the automobile industry make the public feel?

Some attacked Japansese cars with sledgehammers

US companies moved abroad for production

Still world’s wealthiest society

What was Ford’s ‘Whip Inflation Now’ campaign?

Asked Americans to reduce driving by 5% and waste less food

Proposed a tax increase (u-turn as unpopular)

What did tax cuts and the 1975 Omnibus Energy Act do?

Allow domestic oil prices do rise gradually to reduce consumption

What were Carter’s economic policies?

Reduce gov spending

Freeze federal workers wages

Encourage voluntary wage and price controls

Who criticised Carter’s economic policies?

Blue collar: focus on inflation rather than unemployment

Businesses fear: energy policies would damage industry

1977 Carter Energy Programme

Aim to reduce dependence on Middle Eastern oil

Oil conservation and reduced travel

Expansion of: nuclear power, coal and solar energy

Why did the house of representatives oppose Carter’s energy programme?

Oil, gas and automobile producing states opposed it

Voters rejected higher taxes and life style changes during inflation: higher tax on large cars

1980: Energy Security Act

Passed after OPEC raised prices again in 1979

Provided loans and incentives for: synthetic fuels, alcohol fuels and biomass energy

What was 1979 Three Mile Island

Increased enviornmentalist opposition to nuclear power

Protests demand closure of nuclear facilities

10% fall

Energy consumption 1979-83

Did Carter solve the energy crisis?

No, failed to achieve agreement in solving it