1970's+Business+and+Economy


 * Business & Economy in the 1970's**

= __ Overview __  =

** During the 1970's, the business and economy conditions began to disappoint the expectations that Americans had built up during the post-World War II. Baby boomers entered the workforce and began earning sizable salaries in the 1970's. Average annual income had doubled. They had refused to spend money on the latest fads and fashions. Credit cards became popular to postpone payment. Self-fulfillment over savings were willing to take the financial risks to achieve their materials again. They wanted materials such astoys, television, and fancier cars. Companies produced trendy products meant for quick turn-overs. Manufacturers plan to produce clothes, appliances, and other goods. However, the U.S economy was in trouble. Prices rose while value of U.S goods and services decreased. Economists called this situation, the Stagflation. **


 * ** Americans spent money on oil, and petroleum-based products. Unemployment and high prices slowed down the U.S economic activities. Prices in the U.S was more expensive than in Japan and Western Europe. To save money, the U.S manufactures imported more goods and parts from overseas. At a time, U.S had dominated the electronic industry. They began making radios, cameras, and televisions. U.S cars were costly and nothing compared to the imported ones, which no longer ruled industries. 2 years later, from 1972-1974, the economy slipped again. Foreign countries saw the U.S managed it's economy poorly for the first time. **

=__Economy__ =
 * **The decades of the 1970's was the most dramatic for the American economy since the Great Depression. In the downturn of the 1970's hit, was the powerful force of sustainable growth. The Nixon, Ford, and Carter administrations tried a variety of new approaches to revive the economy, but most failed. The solutions often burden the nation with new unintended problems. The Vietnam War had effected the nation's economy of debt greatly. Traditionally, the federal government, reacted to inflation by raising interest rates, forcing buyers to adopt responsible budgets. Foreign producers were beginning to exploit American markets to take sales away from American businesses. The goods could be important to the U.S and sold at lower prices than the goods produced made in their own country .**

__**President's methods to save the economy**__ **Gerald Ford**
 * **Variety of reforms**
 * **Included tax cuts to encourage buying**
 * **Suggested a number of government, and cost cutting measures**

**Jimmy Carter** **Richard Nixon**
 * **Balance tax burdens**
 * **First revision of the income tax code in 30 years**
 * **[[image:pricers/Photograph_of_Jimmy_Carter_Signing_Extension_of_Equal_Rights_Amendment_(ERA)_Ratification,_10-20-1978.jpg width="259" height="191" align="right" caption="Wikimedia Commons"]]Increased the minimum percentage of income (Wealthier people paid)**
 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**New tax codes also dismantled tax shelters that wealthy businesses and individuals used to avoid paying their fair share**
 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Created a new federal department of energy**
 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Tried to administrate nuclear power plants**
 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Slowed inflation's by freezing wages and prices (But later took it off when it failed)**
 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Added taxes on foreign goods**

<span style="font-family: Tahoma,Geneva,sans-serif; font-size: 120%;"> <span style="color: #004eff; font-family: Arial,Helvetica,sans-serif; font-size: 140%;">__**War effects on the Economy**__ <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Vietnam War endangered the nation's economy. Health-care, education, and public aid programs received less government funding because vast sum of money went to military. The Middle East crisis also took a part to the U.S economic problems. Arab nations supplied 35% of the U.S oil, these nations manipulated the cost and amount of oil they exported to gain leverage over the U.S and Western Europe.**

= = = **<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif;">__Business__ ** = = = <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**Big business suffered during the 1970s. 3 main automobile manufacturers: General Motors, Ford, and Chrysler were at mercy of changes in the oil markets and consumer choices. By the end of the decade, Chrysler had to be propped up by the government's money in order to remain out of bankruptcy. The U.S Steel industry was losing their market share to the European and Japanese manufacturers. Other industries and manufacturing businesses tried all they could to avoid bankruptcy. Jobs continued to be lost abroad and wage gains were gradually wearing away by inflation.**


 * <span style="color: #000000; font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**The average annual income had doubled from $5,600 in 1950 to $12,000 in 1973. In a 1977 survey, it reviewed that 27% of workers felt ashamed of the quality of the goods. To save money, U.S manufacturers imported more goods and parts from overseas. At a time, U.S had dominated the electronic industry. Between 1970- 1971, the number of Japanese cars imports reached to 700,000 per year.**

<span style="color: #004eff; font-family: Arial,Helvetica,sans-serif; font-size: 140%;">__**The Creation of the Apple Computer**__

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**In the 1970’s, Steven Jobs was a fifteen-year-old sophomore at Homestead High School located near San Jose, California. His nickname was “wire head” because his vast knowledge in electronics. Jobs was a mastermind,and along with his electronically-minded wizard friend, [|Steve Wozniak], they created the Apple Corporation.**
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 120%;">**In 1976, Apple’s first product was the Apple I. It was designed by Wozniak and the product was made in Jobs’ father’s garage. The Apple I was not packaged when sold, but when it was insisted to a major purchase, it was [[image:pricers/Apple_II_IMG_4214.jpg width="292" height="293" align="left" caption="Apple II (Wikimedia Commons)"]]packaged professionally. Wozniak left the business to Jobs, due to his lack of interest in salesmanship. The Apple II was created with the assistance of new investors and professional managers. No other computer could compete with the Apple 2 and it was top seller. Jobs and Wozniak had perfected the Apple 2 that was worthy of the people's attention. By late 1979, Apple had sold about 50,000 computers, and both Jobs and Wozniak were millionaires. **

**__<span style="color: #000000; font-family: Verdana,Geneva,sans-serif;">Citations __**

 * []
 * "The decades of twentieth century America; America in the 1970's" Date on: January 5th, 2012, Marlee Richards.
 * "American Decade 1970-1979", Victor Bondi, Date on: January 13th, 2012.
 * Hamilton, Neil A. "Introduction: The 1970s." //The 1970s//, Eyewitness History. New York: Facts On File, Inc., 2006. //American History Online//. Facts On File, Inc. [] (accessed January 13, 2012).
 * Business and the Economy in the 1970s: Overview." //DISCovering U.S. History//. Online ed. Detroit: Gale, 2003. //Student Resource Center - Junior//. Gale. KILLOUGH MIDDLE SCHOOL. 13 Jan. 2012 [].
 * "Economy in the 1970s." //DISCovering U.S. History//. Online ed. Detroit: Gale, 2003. //Student Resource Center - Junior//. Gale. KILLOUGH MIDDLE SCHOOL. 13 Jan. 2012 [].