theme 3 - the impact of economic change on society Flashcards
(10 cards)
what features ruined the economy from the 1960s onwards?
manufacturing industries were in decline
expanses of the Vietnam War and the Great Society raised federal govt deficit to $23.3b
how did inflation of the 1970s affect people’s lives?
everything became more expensive
cost of living rose at an average of 8.2% per year (1973-83)
affected family incomes, particularly those in areas known as the Rust Belt
why were people being made homeless in the 1970s?
decrease in number of mental institutions
inner-city renewal policies removed ‘skid-hotels’
rising unemployment
single mothers and lack of support from partners or authorities
increased use of crack cocaine
why was there a rise in the cost of oil?
following WW2, the US became dependent on foreign oil, especially from the Middle East
an OPEC embargo imposed on the US, halting oil exports, triggering a 387% oil price increase
as a result, Americans paid around 30% more for heating oil and petrol
what events highlight the significance of the energy crisis?
1974: 100,000 truckers went on strike in demand of lower fuel costs
- brought the nations roads to a standstill for 11 days
- left stores with empty shelves
1976/77 - harsh winter and gas shortage forced closure of schools and factories
1977: 165,000 United Mine Workers began a 3 months trike
- school closures
- shortened working weeks in Eastern US
1979: half the petrol stations without fuel
why was the energy crisis so significant to ordinary Americans?
cheap oil had been important to post-war prosperity, which was lost when the prices of oil rose
government tried to raise taxes on oil to decrease consumption, but voters disliked increased prices
1973: many forced to save fuel by turning down the thermostat and joining carpools
1977: Carter suggested adjusting thermostats
what impact did foreign competition have on industry?
contributed to a sense of national decline as American companied struggled against Germany and Japan who were technologically superior
increased unemployment and a trade deficit
- annual trade deficit around $40b (1978/9)
Japanese cars increased in popularity and, in the US, the number of permanent jobs in the automobile industry fell from 940,000 (1978) to 500,000 (1982)
however, America still remains the world’d most affluent society - higher GNP than rivals
How did Ford respond to the energy crisis?
Ford asked people to cut mileage by 5% and stop throwing out food
cut federal expenditure and asked Congress to approve a tax rise
- made him unpopular, so he then proposed a tax cut
1975 Omnibus Energy Act
- aimed to bring economy out of recession
how did Carter respond to the energy crisis?
adopted standard methods of focusing on inflation
support for the Federal Reserve Board
what key features were there in Carter’s Energy Programme (1977)
oil conservation
development and use of alternative power sources
higher taxes on cars
greater insulation in homes and work
