I. An Era of Limits

Questions to Consider: What were the causes of the OPEC embargo, and what were its economic, political, and social effects? What groups, people, and events contributed to the environmental movement, and what was the political response? What factors contributed to deindustrialization in the Rust Belt and what were the effects of deindustrialization on the Rust Belt, on labor unions, and on the Sunbelt states and suburbs where people migrated?

Outline: Energy Crisis Environmentalism Causes of OPEC embargo Effects of OPEC embargo Environmentalism Events that contributed Leaders and organizations Legislative response Nuclear power

Outline: Economic Transformation 4. Urban Crisis and Suburban Revolt Causes of stagflation Problems addressing stagflation Deindustrialization Organized labor in decline 4. Urban Crisis and Suburban Revolt Problems facing cities Tax revolt in suburbs

1. Energy Crisis

a. Causes of OPEC Embargo U.S. oil production peaks in 1970.

a. Causes of OPEC Embargo American and European oil companies developed Middle Eastern fields early in the 20th century, when much of region was ruled by Britain and France. After WWII colonialism ended, and Middle Eastern countries began to demand concessions for access to oil. Increased consumption leads to dependence on foreign oil- mainly from the Middle East.

a. Causes of OPEC Embargo May 19, 1948 Israel created out of Palestine in 1947 and Arab neighbors attack in 1948.

a. Causes of OPEC Embargo Israel defeats Egypt, Jordan, Syria and Lebanon- U.S. recognizes Israeli independence.

Upper left: a woman soldier receives training with a grenade- war for independence (TIME). Lower left: Arab refugees in northern Israel on the road to Lebanon, November 1948 (NYT).

a. Causes of OPEC Embargo Kennedy increases military aid to Israel- who defeats Arab enemies again in 1967 Six Days War. Six Days War 1967- Begins June 5th with preemptive Israeli strike on Egyptian air force- crippling them by destroying around 300 aircraft. Israel also attacked the Jordanian and Syrian air forces. Israel takes East Jerusalem. U.S. was officially neutral, but U.S.S.R. supplied Arab nations.

a. Causes of OPEC Embargo Six Days War 1967- Begins June 5th with preemptive Israeli strike on Egyptian air force- crippling them by destroying around 300 aircraft. Israel also attacked the Jordanian and Syrian air forces. Israel takes East Jerusalem. U.S. was officially neutral, but U.S.S.R. supplied Arab nations. 1973 Yom Kippur War- Egypt and Syria attack- are defeated once again (with crucial U.S. aid)

Israel almost doubles in size with Six Days War- taking Sinai Peninsula, the Gaza Strip, the West Bank and Golan Heights. In 1973 Yom Kippur Egypt and Syria attempt to regain lost territory, but Israel wins- gaining even more territory. “The war left Israel more dependent on the US for military, diplomatic and economic support.” (BBC)

a. Causes of OPEC Embargo Organization of Petroleum Exporting Countries formed 1960 to control prices.

a. Causes of OPEC Embargo In 1973 OPEC embargos (stops shipping) petroleum to countries that supported Israel.

b. Effects of OPEC Embargo Embargo lasted a few months but OPEC raised prices ($3 a barrel in 1973 to $30 in 1980).

b. Effects of OPEC Embargo

b. Effects of OPEC Embargo Gas prices jumped 40% and long lines formed in winter 1973-1974.

b. Effects of OPEC Embargo Congress imposes national speed limit of 55 mph to conserve fuel.

b. Effects of OPEC Embargo Americans buy more fuel efficient foreign cars- U.S. car sales slump.

b. Effects of OPEC Embargo Inflation increases (basic necessities up 20%)

2. Environmentalism

a. Events that Contributed Santa Barbara oil spill in January and February of 1969- largest oil spill in U.S. history (later surpassed by Exxon-Valdez in 89 and Deepwater Horizon in 2010). Civil Rights and antiwar movements inspired grassroots environmentalists.

a. Events that Contributed in ‘69 Santa Barbara oil spill in January and February of 1969- largest oil spill in U.S. history (later surpassed by Exxon-Valdez in 89 and Deepwater Horizon in 2010). Millions of gallons of oil spilled off coast of Santa Barbara, California.

a. Events that Contributed in ‘69 Cuyahoga River in Ohio caught fire at least 13 times- largest in 1952. The 1969 fire caught the attention of TIME Magazine- a river that “oozes rather than flows” Reporter Richard Ellers famously dipped his hand into the river. The Cuyahoga River in Ohio caught fire- the river that “oozes rather than flows”

a. Events that Contributed in ‘69 By late 1968, ground had been broken in the middle of the Everglades on the world's largest and most ambitious airport. Longtime environmental activist Joe Browder, pictured in 1971, helped the fight against the jetport's construction. http://www.miaminewtimes.com/news/fiery-debate-over-miami-air-show-in-everglades-7670371 Friends of the Everglades opposes airport that threatened environment in Florida.

b. Leaders and Organizations Historical precedents: Sierra Club (1892), the Wilderness Society (1935), and the Natural Resources Council (1942).

b. Leaders and Organizations

b. Leaders and Organizations Sierra Club successfully fights two dams in the Grand Canyon in 1966.

b. Leaders and Organizations Rachel Carson publishes Silent Spring in 1962- exposing impact of pesticide DDT on food chain and environment.

b. Leaders and Organizations Rachel Carson publishes Silent Spring in 1962- exposing impact of pesticide DDT on food chain and environment. A crop-duster spreading DDT on a ranch in Oregon in 1948. Credit Associated Press http://www.nytimes.com/2012/10/28/business/rachel-carsons-lessons-50-years-after-silent-spring.html?_r=0

b. Leaders and Organizations U.S. Senator Gaylord Nelson (Wisconsin) starts movement with first Earth Day April 22, 1970. Teach-ins and protests across the country. U.S. Senator Gaylord Nelson (Wisconsin) organizes first Earth Day on April 22, 1970.

c. Legislative Response Environmental Protection Agency established 1970.

c. Legislative Response EPA sets and enforces pollution standards, promotes research, and coordinates activities with state/local govt.

c. Legislative Response EPA monitors federal agencies effect on the environment. Businesses must submit environmental impact report for approval. In January 2014 the State Department’s environmental impact statement claimed the pipeline would not affect carbon emissions. In early February of 2015 the EPA disagreed.

c. Legislative Response Clean Air Act (1970) and Water Pollution Control Act (1972) strengthened previous acts under LBJ’s Great Society. Congress also passed Clean Air Act in 1970 and Clean Water Act in 1972- both overriding Nixon’s veto. Nixon was concerned about the cost of the legislation.

c. Legislative Response Endangered Species Act (1973) established measures for saving threatened and endangered species. Covers all species of plants and animals except pest insects. Endangered: at risk of becoming extinct. Threatened: at risk of becoming endangered soon.

c. Legislative Response Covers all species of plants and animals except pest insects. Endangered: at risk of becoming extinct. Threatened: at risk of becoming endangered soon. Identify species, protect their habitat and promote their recovery.

d. Nuclear Power By 1974, U.S. operating 42 nuclear plants with 100 more planned- seems like solution to energy crisis.

d. Nuclear Power Environmentalists warn of dangers of meltdown and dumping nuclear waste water and fuel rods.

d. Nuclear Power 1979 Three Mile Island near nuclear meltdown causes 100,000 to evacuate and cancelation of any new projects.

3. Economic Transformation

a. Causes of Stagflation Stagflation: combination of unemployment, stagnant consumer demand, and high inflation.

b. Causes of Stagflation Unemployment result of ripple effect of OPEC embargo and transition of U.S. economy from industrial to service economy.

b. Causes of Stagflation U.S. faced increased competition from Japan and West Germany- share of world trade drops from 32 to 18% (1955-1970).

b. Causes of Stagflation U.S. produced fewer cars and appliances and provided more services like healthcare and finance.

b. Causes of Stagflation High inflation caused by increased govt. spending on Great Society and Vietnam and OPEC embargo.

b. Problems Addressing Stagflation Keynesian economics called for increased govt. spending to jumpstart economy- but this contributes to inflation.

b. Problems Addressing Stagflation In the past the U.S. cut spending and raised interest rates to reduce inflation- but that slows down the economy.

b. Problems Addressing Stagflation Nixon tries price and wage controls and removed U.S. off of gold standard (considered most radical approach). http://www.federalreservehistory.org/Events/DetailView/33

b. Problems Addressing Stagflation http://www.federalreservehistory.org/Events/DetailView/33 Ford tried voluntary controls with “Whip Inflation Now” (WIN) urging Americans to do more with less.

b. Problems Addressing Stagflation Carter focused on deregulation of airline, trucking, and railroad industry. http://www.federalreservehistory.org/Events/DetailView/33

b. Problems Addressing Stagflation http://www.federalreservehistory.org/Events/DetailView/33 Inflation remained high into the early 1980s- especially after 1979 Iranian Revolution

c. Deindustrialization Increasing worldwide competition especially hurt steel and auto industries as plants closed in the Midwest and Northeast (Rustbelt).

c. Deindustrialization Automobile, tire, textile, appliances, electronics all started shrinking in the 1970s.

d. Organized Labor in Decline Union membership strongest in hard hit industrial sector.

d. Organized Labor in Decline Inflation leads to strikes but poor economy weakens labor’s bargaining power.

d. Organized Labor in Decline Union membership continues to decline in 1980s- hurting liberal New Deal coalition.

4. Urban Crisis and Suburban Revolt

a. Problems Facing Cities “White flight” to suburbs shrinks tax base of cities- who reduce services.

a. Problems Facing Cities New factories and jobs open up in suburbs and weak economy further hurts cities. Silicon Valley in 1953. Source: NPR.org

a. Problems Facing Cities Nearly every major U.S. city struggled to pay bills in 1970s. New York near bankruptcy 1975. Silicon Valley in 1953. Source: NPR.org

b. Tax Revolt in the Suburbs Inflation pushed up property values and taxes- California was hardest hit.

b. Tax Revolt in the Suburbs Howard Jarvis leads revolt in CA and pushes through passage of Proposition 13.

b. Tax Revolt in the Suburbs Proposition 13 cut property taxes, capped future increases, and required tax measures to have 2/3 majority.

b. Tax Revolt in the Suburbs Schools hit the hardest, middle class, wealthy, and businesses benefit the most.