1. I. An Era of Limits

2. 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?

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

4. 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

5. 1. Energy Crisis

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

7. 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.

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

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

10. 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).

11. a. Causes of OPEC Embargo
Kennedy increases military aid to Israel- who defeats Arab enemies again in 1967 Six Days War.
Six Days War 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.

12. a. Causes of OPEC Embargo
Six Days War 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)

13. 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)

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

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

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

17. b. Effects of OPEC Embargo

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

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

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

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

22. 2. Environmentalism

23. a. Events that Contributed
Santa Barbara oil spill in January and February of 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.

24. a. Events that Contributed in ‘69
Santa Barbara oil spill in January and February of 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.

25. a. Events that Contributed in ‘69
Cuyahoga River in Ohio caught fire at least 13 times- largest in 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”

26. 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.
Friends of the Everglades opposes airport that threatened environment in Florida.

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

28. b. Leaders and Organizations

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

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

31. b. Leaders and Organizations
Rachel Carson publishes Silent Spring in exposing impact of pesticide DDT on food chain and environment.
A crop-duster spreading DDT on a ranch in Oregon in Credit Associated Press

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

33. c. Legislative Response
Environmental Protection Agency established 1970.

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

35. 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.

36. 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 both overriding Nixon’s veto. Nixon was concerned about the cost of the legislation.

37. 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.

38. 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.

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

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

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

43. 3. Economic Transformation

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

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

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

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

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

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

50. 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.

51. b. Problems Addressing Stagflation
Nixon tries price and wage controls and removed U.S. off of gold standard (considered most radical approach).

52. b. Problems Addressing Stagflation
Ford tried voluntary controls with “Whip Inflation Now” (WIN) urging Americans to do more with less.

53. b. Problems Addressing Stagflation
Carter focused on deregulation of airline, trucking, and railroad industry.

54. b. Problems Addressing Stagflation
Inflation remained high into the early 1980s- especially after 1979 Iranian Revolution

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

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

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

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

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

60. 4. Urban Crisis and Suburban Revolt

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

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

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

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

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

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

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