11'4 Economic Decline of 1970s

1
11.4 Economic Decline of 1970s

• US History

Ms. Ramos
2
A. Economic Conditions of 1970s

• Stagflation
• Inflation
• unemployment
• Increasing debt

Ms. Ramos
http//www.coverbrowser.com/image/time/2981-1.jpg
3
B. Causes of economy

• of Vietnam Great Society
• Increase foreign competition baby boomer job
  demand
• More gov spending higher energy costs add to
  inflation

Ms. Ramos
4
Debt
Ms. Ramos
http//www.doctorhousingbubble.com/wp-content/uplo
ads/2009/04/savings-debt.png
5
C. Energy Crisis-biggest factor in economic
decline
Ms. Ramos
http//64.78.48.77/STAGFLATION.GIF
6
Ms. Ramos
http//dollardaze.org/blog/posts/2007/June/25/1/19
70to2005OilPrices.gif
7
Growing Dependence on Foreign Oil

• Demand for oil increased while domestic
  production decreased

http//southdakotapolitics.blogs.com/south_dakota_
politics/images/2008/07/11/offshoreoil.jpg
Ms. Ramos
8
Yom Kippur War, 1973

• Israel v. Egypt/Syria
• US supports Israel
• OPEC retaliation- embargo (cut off oil)

Ms. Ramos
https//www.compass.org/tours/slideshows/images/6-
8.jpg
9
Discovery Education. "Yom Kippur War."Discovery
Education http//streaming.discoveryeducation.com
/
10
http//www.apachecorp.com/Resources/Upload/PrevArt
icleFiles/images/1973_1.jpg
http//www.financialsense.com/series3/images/part2
/gaslines_1970s.jpg
http//www.0-60mag.com/online/wp-content/uploads/2
008/10/opec.jpg
Ms. Ramos
11
Oil Embargo

• Short Term Impact
• Shortages
• Higher prices (10/barrel to 30/barrel--.30 to
  .70)

http//media3.washingtonpost.com/wp-dyn/content/ph
oto/2008/07/25/PH2008072502389.jpg
Ms. Ramos
12

• Long Term Impact
• Higher prices
• Dependence on oil

Ms. Ramos
13
Energy Plan Goals

• Reduce dependence on oil
• Conservation
• Produce more
• Alternative energy sources

Ms. Ramos
14
Energy Plan Programs
Ms. Ramos
http//jbwarehouse.blogspot.com/77_time.jpg
15

• 55 mph limit
• Strategic Oil Reserve
• Mileage standards
• Alaska pipeline

http//ohmygov.com/blogs/general_news/carter55.jpg
Ms. Ramos
http//www.alaska.net/logjam/AKpipeline_map.gif
16
Ms. Ramos
http//i.treehugger.com/files/alaska20pipeline.jp
g
17

• Deregulation of domestic production
• Pro/con
• Tax incentives

http//www.moog.com/img/3/Issue-19-Oil-and-Gas_oil
-drill_lrg.jpg
Ms. Ramos
18

• Alternative sources
• Solar, coal, nuclear
• Gas tax

http//cleantechnica.com/files/2008/03/carter-1979
-radford.jpg
http//www.biblelife.org/energy-coal-fired-plant.j
pg
http//assets.latimes.com/system/assets/images/000
0/1696/i4gsqwkf_medium.jpg
Ms. Ramos
19
http//1.bp.blogspot.com/_BYX14125JUQ/Sc7YiE8E1nI/
AAAAAAAAJT0/7WaDcUv97Xc/s400/Three_Mile_Island.jpg
Ms. Ramos
20
Three Mile Island

• March 28, 1979 Middletown, Pennsylvania
• In 1979 a cooling malfunction caused part of the
  core to melt in the 2 reactor at Three Mile
  Island in USA. The reactor was destroyed. 
• Some radioactive gas was released a couple of
  days after the accident, but not enough to cause
  any dose above background levels to local
  residents. 
• There were no injuries or adverse health effects
  from the accident. 
• http//www.world-nuclear.org/info/inf36.html

Ms. Ramos
21

• Effectiveness of Energy Plan
• Still dependent on oil from others
• Impact of Iranian Revolution 79
• Caused a second gas price hike
• 40 barrel/ 1 gallon

Ms. Ramos
22
Economic situation at end of decade

• 1. Inflation- 13
• Unemployment- over 7
• 2. Malaise Speech
• 3. Public Opinion down re Carter US

Ms. Ramos
23
Malaise Speech

• Crisis of confidence in America
• Americans unwilling to make hard choices to get
  economy on track
• Have things changed today?

Ms. Ramos
24
Crisis of Confidence speech excerpt 1
Miller Center of Public Affairs. "Crisis of
Confidence" Speech (July 15, 1979) Jimmy Carter.
University of Virginia http//millercenter.org/sc
ripps/archive/speeches/detail/3402
25
Crisis of Confidence speech excerpt 2
Miller Center of Public Affairs. "Crisis of
Confidence" Speech (July 15, 1979) Jimmy Carter.
University of Virginia http//millercenter.org/sc
ripps/archive/speeches/detail/3402
26
Ms. Ramos
http//upload.wikimedia.org/wikipedia/commons/3/37
/US_Energy_Consumption_by_Source_2007.PNG
27
Current Oil Stats
US Oil Production 2007
Ms. Ramos
http//www.eia.doe.gov/neic/infosheets/gifs/crude_
oil_prod_pie_2009.gif
28
Global Oil Production 2008
Ms. Ramos
http//www.nationmaster.com/red/pie/ene_oil_con-en
ergy-oil-consumption Using 2008 CIA Factbook stats
29
Top 10 Oil Producers 2007
Ms. Ramos
http//media.ft.com/cms/19d4f43e-a1a5-11dc-a13b-00
00779fd2ac.sw 2007 statsf
30
Top 10 Oil Consumers 2007
Ms. Ramos
http//media.ft.com/cms/19d4f43e-a1a5-11dc-a13b-00
00779fd2ac.swf