Impact Of Economic Change In US Society 1973-80

Question 1

Who became the only person in US history to become president without winning an election?

Answer 1

Gerald Ford

Gerald Ford assumed the presidency in 1974 following Richard Nixon’s resignation.

Question 2

What policies did Carter introduce in 1977?

Answer 2

Policies intended to reduce the rate of employment and inflation

These policies aimed to address economic challenges faced during his presidency.

Question 3

What significant event occurred at the Three Mile Island nuclear power plant in 1979?

Answer 3

A nuclear accident

This incident raised concerns about nuclear safety in the United States.

Question 4

What global crisis was triggered by the Iranian Revolution?

Answer 4

Global oil crisis

The revolution disrupted oil supply, leading to increased prices worldwide.

Question 5

What major event occurred in 1980 involving hostages?

Answer 5

Iranian hostage crisis

This crisis involved the seizure of the US embassy in Tehran and the holding of American diplomats.

Question 6

Who defeated Carter in the 1980 presidential election?

Answer 6

Ronald Reagan

Reagan’s victory marked a significant political shift in the United States.

Question 7

What was one of the biggest problems facing the US during the 1970s?

Answer 7

Inflation

Inflation rates doubled to ten percent during this decade, significantly impacting families.

Question 8

What was the inflation rate when Carter took office in 1977?

Answer 8

Five percent per year

Inflation escalated quickly during his presidency.

Question 9

How much did the cost of living increase between 1968 and 1978?

Answer 9

Doubled

This increase in living costs contributed to economic distress for many families.

Question 10

What was the cost of a postage stamp in 1974?

Answer 10

Eight cents

The price of postage stamps rose significantly in the following years.

Question 11

What was the cost of a McDonald’s burger in 1967?

Answer 11

15 cents

This price increased to 50 cents by 1981, reflecting broader inflation trends.

Question 12

What was the record high for interest rates during the economic downturn?

Answer 12

Around 20 percent

High interest rates discouraged borrowing and investment.

Question 13

What was the federal minimum wage in 1981?

Answer 13

$3.35

Despite this increase, wages did not keep pace with inflation.

Question 14

What was the percentage increase in industrial productivity from 1972 to 1978?

Answer 14

Only one percent

This was significantly lower than the average productivity growth in earlier decades.

Question 15

By how much did real incomes in the USA fall each year from 1973 to 1981?

Answer 15

Two percent

This decline contributed to worsening living standards.

Question 16

What economic condition did the US experience from 1975?

Answer 16

Stagflation

Stagflation involved high inflation and high unemployment occurring simultaneously.

Question 17

What was the inflation rate and unemployment rate during the peak of stagflation?

Answer 17

Inflation at 11 percent and unemployment at nine percent

These conditions led to significant economic hardship for families.

Question 18

What happened to the US standard of living by the mid-1970s?

Answer 18

Fell to fifth in the world

This decline was due to various economic challenges faced during the decade.

Question 19

What was the impact of foreign competition on traditional industries in the US?

Answer 19

Closed or relocated industrial plants

Many manufacturing jobs moved to areas with cheaper labor costs.

Question 20

What percentage of manufacturing jobs were in the Northeast and Midwest in 1967?

Answer 20

Two-thirds

This percentage decreased significantly by 1992.

Question 21

What areas became known as the ‘Rust Belt’?

Answer 21

Northeast and Midwest

These areas faced significant job losses due to industrial decline.

Question 22

What economic shift occurred regarding wealth distribution in the US?

Answer 22

Wealth began to move to the South and West

This shift was associated with the relocation of businesses and industries.

Question 24

What is foreclosure?

Answer 24

Foreclosure occurs when a house-buyer fails to keep up with mortgage repayments, leading the lender to take possession of the house instead of repayment of the loan.

Question 25

How did the federal government respond to homelessness in the 1930s and 1970s?

Answer 25

The federal government supplemented state provision in response to homelessness during the 1930s and again in the 1970s.

Question 26

What was the impact of the stagflation of the 1970s on poverty levels?

Answer 26

Despite the percentage of the population living in poverty remaining stable at 12 percent, the numerical number of people living in poverty increased due to a rise in population.

Question 27

Which areas suffered particularly badly from unemployment in the 1970s?

Answer 27

Areas such as the Mississippi Delta and Appalachia, dependent on textile manufacture and coal-mining, suffered particularly badly due to mechanization.

Question 28

What happened to Philadelphia's manufacturing jobs between 1951 and 1977?

Answer 28

Manufacturing jobs in Philadelphia fell from 46 percent in 1951 to 24 percent in 1977.

Question 29

How did Proposition 13 affect state support services in California?

Answer 29

Proposition 13 reduced state taxes by 57 percent, which had a serious impact on state support services like welfare.

Question 30

What were the causes of the stagflation of the 1970s?

Answer 30

The stagflation was caused by rising federal debt, foreign manufacturing competition, and significant oil crises in 1973 and 1979.

Question 31

What triggered the oil crisis in 1973?

Answer 31

The Arab-Israeli Yom Kippur War created uncertainty about oil availability, leading OPEC to quadruple the international price of oil.

Question 32

How did oil prices change from 1973 to 1979?

Answer 32

Oil prices rose from $3 per barrel in 1973 to $34 per barrel by the summer of 1979.

Question 33

What was the economic impact of the oil crisis on the US?

Answer 33

The US Gross National Product (GNP) dropped by 2.5 percent in the first three quarters of 1973 and fell another 3.2 percent in the winter of 1974 to 1975.

Question 34

How did American perceptions of the economy change by 1979?

Answer 34

By 1979, 55 percent of Americans believed that 'next year will be worse than this year,' and nearly 90 percent believed inflation was a permanent feature of the US economy.

Question 36

What was the US economy heavily dependent on until the 1970s?

Answer 36

The US economy was heavily dependent on petrol-driven transportation.

Question 37

What were the cars produced by the US known for before the 1970s?

Answer 37

They were known as 'gas guzzlers' and had poor petrol consumption.

Question 38

What happened to the US car manufacturers in 1974?

Answer 38

The USA's three biggest car manufacturers laid off 224,000 workers.

Question 39

Which US car manufacturer faced bankruptcy by 1980?

Answer 39

Chrysler faced bankruptcy and survived through a federal bailout of $1.3 billion.

Question 40

By how much did car imports rise at the same time Chrysler faced bankruptcy?

Answer 40

Car imports rose by 33 percent.

Question 41

What was the European Economic Community and when was it created?

Answer 41

The European Economic Community was created in 1957 and included nine European countries after 1973.

Question 42

Which countries were significant competitors to the US car industry?

Answer 42

Imported cars from West Germany and Japan were significant competitors.

Question 44

What is the AFL-CIO?

Answer 44

The US national trade union organization created in 1955 from an amalgamation of the American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO). ## Footnote Traditionally, the AFL represented skilled workers and the CIO semi-skilled and unskilled workers.

Question 45

What was the economic situation in the USA during the oil crisis of 1973?

Answer 45

Foreign competition increased pressure on US manufacturing, resulting in factory closures and restructuring, which usually involved downsizing and worker redundancies.

Question 46

What was President Ford's response to the economic problems in the USA?

Answer 46

Ford attempted a policy of voluntary restraint by businesses and individuals called Whip Inflation Now (WIN) and cut federal spending to curb rising prices. ## Footnote Unfortunately, these policies failed to address the severe economic problems.

Question 47

What was the unemployment rate during the economic recession of 1974-75?

Answer 47

Unemployment rose to 11 percent.

Question 48

What initiatives did Jimmy Carter implement to address the recession?

Answer 48

Carter cut taxes and used public works programs, including the Public Works Act of 1977, to stimulate the economy. ## Footnote This included a $4 billion public works program and the Earned Income Tax Credit (EITC).

Question 49

What was the purpose of the Humphrey-Hawkins bill?

Answer 49

The bill aimed to allow the federal government to protect workers' jobs during economic recessions by becoming the employer of last resort.

Question 50

What was the National Energy Plan (NEP) announced by Carter?

Answer 50

The NEP outlined the deregulation of natural gas prices and aimed to promote energy conservation and alternative energy sources. ## Footnote It was not implemented until October 1978.

Question 51

What was the impact of Carter's energy policies on US energy consumption?

Answer 51

US energy consumption fell ten percent between 1979 and 1983.

Question 53

What was the Airline Deregulation Act of 1978?

Answer 53

It abolished the Civil Aeronautics Board to create greater competition in the airline industry. ## Footnote Similar legislation was introduced for the lorry and communications industries.

Question 54

What was Carter's hope for greater market competition?

Answer 54

He hoped it would lead to lower prices for consumers and encourage economic growth.

Question 55

What was the unemployment rate by late 1978?

Answer 55

Unemployment had dropped to five percent.

Question 56

What happened to inflation from 1977 to 1978?

Answer 56

Inflation rose from six percent in 1977 to ten percent in 1978.

Question 57

What was Carter's approval rating in the summer of 1979?

Answer 57

He was achieving a mere 26 percent approval rating in opinion polls.

Question 58

What was the main outcome of Carter's energy policy announced after the Camp David conference?

Answer 58

A programme of research into the production of synthetic fuel to limit US dependence on oil and gas.

Question 59

What economic issues did Carter face by 1980?

Answer 59

The economy reverted to stagflation, with unemployment at 7.5 percent, mortgage rates at 15 percent, interest rates at an all-time high of 20 percent, and inflation averaging 12-13 percent.

Question 61

What economic problem did the 1979 Economic Report of the President highlight?

Answer 61

Inflation was identified as a big problem for the US economy.

Question 62

What plan did the 1979 Economic Report recommend to control inflation?

Answer 62

A plan for the voluntary control of prices and wages.

Question 63

What was the outcome of the voluntary restraint to control inflation?

Answer 63

It failed to control inflation.

Question 64

By 1979, what did the American public perceive as the major economic problem?

Answer 64

Inflation, rather than unemployment.

Question 65

What effect did inflation have on public faith in the Democratic Party by 1979?

Answer 65

The public was losing faith in the Democratic Party.

Question 66

What foreign policy setbacks did President Carter face?

Answer 66

The Iran Hostage Crisis and the Soviet invasion of Afghanistan.

Question 67

What was the result of the 1980 presidential elections for Carter?

Answer 67

Carter's failures helped ensure Democrat defeat.

Question 68

How many Electoral College votes did Ronald Reagan win in the 1980 elections?

Answer 68

489 Electoral College votes.

Question 69

How many seats did Democrats lose in the House of Representatives in the 1980 elections?

Answer 69

33 seats.

Question 70

How many seats did Democrats lose in the Senate in the 1980 elections?

Answer 70

Nine seats.

Question 71

What did President Carter say about the annual inflation rate in the US during his speech on October 24, 1978?

Answer 71

The annual inflation rate had averaged six and a half percent over the last 10 years.

Question 72

What was the average inflation rate in the three years before Carter's inauguration?

Answer 72

An average of eight percent.

Question 73

What did Carter say would happen if inflation got worse?

Answer 73

Purchasing power would decline, national productivity would suffer, and the value of the dollar would fall in world trade.

Question 74

How many new jobs were created for American workers during Carter's presidency?

Answer 74

More than six million new jobs.

Question 75

By what percentage did Carter's administration reduce the unemployment rate?

Answer 75

By about 25 percent.

Question 76

What did Carter acknowledge about inflation in his speech?

Answer 76

Inflation is obviously a serious problem and he does not have all the answers.