The economy of the 1970's, what was it like?

Question

i know the economy was a little different back then but what was the most significant event about the economy that had an impact on the american citizens.

answer with sources please.

Answer 1

Although i am English i suspect that the economy of America was affected by the same issue. In1973 the Arab Israeli war caused the price and supply of oil to be seriously effected. The price of petrol at the pumps soared in much the same way as it is at the moment. In England petrol ration books were issued although these were never needed.

Answer 2

Alan's answer is correct, raising prices of oil and formation of the OPEC cartel affected the whole world economy.

On top of that, the ending  of the Vietnam war affected military spending in the USA, and that hurt some of the key military related industries of they USA.  

Americans also started buying more foreign cars, further hurting the USA auto industry.

And, when the USA gets "sick" the rest of the world suffers too, as so much of other countries' economies are based on USA consumer spending, and travel overseas as tourists.

Unfortunately, technology then was still too fossil fuel dependent, and no great effort was made to develop cheaper, alternative fuels.

(whether solar, water power, or wind power).

Overall, I don't think Americans then really understood some of the important social changes coming after the Age of Aquarious too.  

American voters  eventually turned towards conservative political candidates, and ought protection by reducing government spending on social programs, tax cuts, and other things, that also increased the U.S. naitonal debt, and reduced the value of our dollar on the world market.

It was  a "slow" period economically, and that in part set the stage for a boom later in the 1980's and 90's.

Answer 3

The American economy of the1970s was marked by a period of high inflation, rising prices, and high unemployment.  It was the beginning of the end for large industries such as steel.  The oil embargo placed on the US by the newly formed OPEC created long lines and shortages at gas pumps across the nation and lead to the rationing of gas supplies by President Carter.  The auto industry was impacted by the rush to buy more fuel efficient cars which American automakers didn't produce and lead to foreign car makers such as Toyota and Nissan gaining a foothold in the US auto market. The government mandated a 55 MPH speed limit on all federally funded highways. It marked the transition of our economy from one of heavy industry to a service and high tech economy we are more familiar with today.