16. Sources Of Stagnation

Information There was a decline in productivity and some observed that the presence of women and teenagers in the workforce increased and some blamed the lack of investments in new machinery, the cost of following safety regulation rules, and the shift from manufacturing to services. (Economic, Social) The Vietnam War resulted in many problems, such as tax dollars lost from improving education and rising oil prices that led to inflation. Government policies in the 70s are what caused these problems due to the military and welfare spending without increases in taxes to make up for money lost. (Economic, Political, Militaristic)

This inflation caused the cost of living to grow to more than 3 times what it was before, which became the longest inflationary cycle in American history. (Economic) The nation’s economy was also weakened by the reversal of financial fortunes. Major American businesses had prospered so much after WWII that they had small incentive to work on different methods of production. (Economic, Militaristic) Germany and Japan both worked to rebuild factories after the war, with brand new technology and management techniques, all of which soon paid off once they dominated the steel, automobile, and consumer electronics industries. (Social, Economic, Militaristic) Information

Information The poor economic performance stuck throughout the 70s. It was frustrating for the policymakers and the people who remembered the economic growth that resulted from WWII. The postwar generation had run into a problem that they could not solve, which they were not used to. The confidence ended with a stalemate war and unresponsive economy.

Source 1 O- Daily World Newspaper C- Shows the people on small wages raft being washed over by the wave of inflation and increased prices P- To emphasize how the economy had been the public’s demise and heavily impacted the way of life V- Properly conveys the situations of most of the citizens L- Does not explain situation behind increased prices and inflation

Source 2 O- 1970s Newspaper C- Quotes Alice In Wonderland and shows the government’s secretiveness regarding plans and public information P- To illustrate public opinion regarding what was going on within the government V- Offers insight into how the citizens felt at the time L- Does not offer information behind government reasoning for secretiveness

Source 3 O- 1970s Newspaper C- Shows the offering of money to money hungry people, who only worry about getting rich P- To illustrate the attitudes of America in the 70s and the ignorance of the risks of inflation V- Properly conveys the attitudes of the people L- Does not show the other reasons for inflation in the 70s

Questions What were some reasons behind economic inflation in the 1970s? Analyze the attitude of the American government regarding secrecy.