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CLIP homepage CLASS PAGES Modern US History with English
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Modern US History
First Home
In The 70's
United States
My father
and the 70's Recession
United States
Hi, I was on the front
lines at a gas station during this "gas crisis". We had 3 lines of cars,
about 40 or more cars long each, going out of our station.
Money and Inflation 1970's
To provide
an estimate of inflation we have given a guide to the value of $100 US
Dollars for the first year in the decade to the equivalent in todays money
· The oil crisis in 1973 was caused when Arab members of the Organization of Petroleum Exporting Countries (OPEC), during the Yom Kippur War, announced that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt , to the United States and its allies in Western Europe. It was also announced that the price for Oil would increase drastically. The west was by now dependent on oil and together with prices quadrupling and measures for rationing the western world went into recession and suffered massive inflationary pressure. At that time the United States did have their own oil reserves and although they were affected the biggest impact was on European Economies . · After nearly 10 years of war in Vietnam 1973 was also the year that allied forces pulled out of Vietnam · Another significant factor in the 70's was the growth in women’s rights and women’s’ role in society including the ability to decide when where and if they wished to have children ( partly through the availably of the contraceptive pill ) · President Richard Nixon was forced to resign as president of the United States due to imminent impeachment related to the Watergate scandal. · With the continuing Cold War between the East and West the arms race continued with each side trying to find the ultimate weapon
Popular Culture 1970's The Waterbed The 70's produced many icons , one of those being the modern waterbed created by Charles Hall in 1968, This was fuelled by the sexual revolution of the 70's encompassing the Waterbed . Technology 1970's · The 70's were the start in many ways of the Electronics and digital revolution, with the invention of transistors and Integrated Circuits in the late 60's, companies now found ways to use the technology which caused the phenomenal growth in smaller more powerful and cheaper products ranging from Calculators to Televisions. · The 70's also saw the beginning of the Home Computer due to Intel creating the first cheap microprocessor - the Intel 4004, and other integrated circuits. In the beginning the computers were mainly for the hobbyists and included the Apple II, the TRS-80, the Commodore PET, and Atari 400/800 and with the growth of these home computers Bulletin Boards became a popular way for people to find others with similar interests · The first use of card access Electronic Locks appear · As people realised the power of these new home computers a new use was found and that was the beginning of the video game . When we look at those games now we see how basic they were but the technology available and the understanding of what could be done limited those early games. · With the invention earlier of the microwave oven and now the capability to manufacturer and sell cheaply many homes adopted the technology in their kitchens · Due in part to the increased use of the 747 a Jumbo Jet able to carry large numbers of passengers across continents air travel booms and causes new problems with pollution, delays and air traffic control
Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole. A similar definition of inflation can be found in Economics by Parkin and Bade: Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Because inflation is a rise in the general level of prices, it is intrinsically linked to money, as captured by the often heard refrain "Inflation is too many dollars chasing too few goods". To understand how this works, imagine a world that only has two commodities: Oranges picked from orange trees, and paper money printed by the government. In a year where there is a drought and oranges are scarce, we'd expect to see the price of oranges rise, as there will be quite a few dollars chasing very few oranges. Conversely, if there's a record crop or oranges, we'd expect to see the price of oranges fall, as orange sellers will need to reduce their prices in order to clear their inventory. These scenarios are inflation and deflation, respectively, though in the real world inflation and deflation are changes in the average price of all goods and services, not just one. We can also have inflation and deflation by changing the amount of money in the system. If the government decides to print a lot of money, then dollars will become plentiful relative to oranges, just as in our drought situation. Thus inflation is caused by the amount of dollars rising relative to the amount of oranges (goods and services), and deflation is caused by the amount of dollars falling relative to the amount of oranges. Thus, as shown by the article "Why Does Money Have Value?", inflation is caused by a combination of four factors: 1. The supply of money goes up. 2. The supply of other goods goes down. 3. Demand for money goes down. 4. Demand for other goods goes up. Now that you know what inflation is, you may want to visit some of the other inflation resources offered at About.com: |
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