Term
| Describe inflation during the 1960s |
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Definition
| Low inflation beginning of decade, increasing inflation at end of decade. |
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Term
| Describe major economic issues of the 1960s |
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Definition
-Low energy costs as most petroleum still domestically produced
-High wages due to conscription of workers into military, political power of unions and higher education levels
-Massive government spending on Vietnam War and expanded social programs |
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Term
| Describe inflation during the 1970s |
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Definition
| Increasing inflation throughout decade caused by high wages, higher energy costs, high food costs |
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Term
| Describes major economic issues of the 1970s (part 1) |
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Definition
-OPEC nations cut production of petroleum to keep energy prices high. Oil embargo of 1973 and Iranian revolution in 1979 result in energy shortages
-Increased foreign competition especially from Germany and Japan and high energy costs force closure of many factories raising unemployment |
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Term
| Describe major economic issues of the 1970s (part 2) |
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Definition
-Movement of large numbers of women, returning Vietnam veterans, and baby-boomers into labor force aggravates high unemployment rates
-Government preoccupation with Vietnam War and Watergate scandal prevents serious action to correct economic problems |
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Term
| Describe inflation during the 1980s |
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Definition
| High inflation at beginning of decade-low inflation at end of decade |
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Term
| Describe major economic issues during the 1980s |
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Definition
-Deregulation of domestic oil prices and other incentives lead to increased energy supplies, lowering prices
-Tax cuts geared to business expand economy and create new jobs
-Technology improves productivity
-Changes in Soviet leadership lead to Cold War tensions |
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Term
| Describe inflation during the 1990s |
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Definition
| Recession at beginning of decade-economic boom at end leads to low unemployment levels. Low inflation throughout decade |
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Term
| Describe major economic issues of the 1990s |
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Definition
-Fall of Soviet Union leads to reductions in defense spending and budget surpluses at end of decade
-Y2K and fears of network meltdowns preoccupied final years of decade
-Low energy costs throughout most of decade-increasing costs at end of decade |
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Term
| Describe major economic issues of the 2000s |
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Definition
-Energy costs increase steadily throughout decade
-War on Terror eases budget surpluses and leads to wars in Afghanistan and Iraq
-Outsourcing and obsolescence of manufacturing jobs leads to economic demise of states such as Michigan that are reliant on manufacturing |
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