Question

What are the key economic problems in the 1970s? How did the Nixon presidency alter the trajectory of the office? 500 words

Answer 1

The Vietnam War had just ended during the 70s and the U.S. economy was suffering. The golden era is over and the United States has hit a recession. A lot of problems were starting to crop up and the American people were overwhelming. Carbon deficit, high inflation and high unemployment were the main problems. The energy crisis arose due to a shortage of oil around the world. Nations around the world have begun to preserve their reserves of non-renewable oil in the expectation that in the near future, some will still be available. Nations were starting to rely on the Middle East for oil because of their sheer abundance.

During this oil shortage, a war called Yom Kippur War was fought by the Arab and Israel states. The Arabs will lose because the Israelis had been supported by the west. Because of this, the Arabs put and oil embargo on the west out of outrage dubbed the "Arab Oil Embargo." The world's biggest oil producers such as Saudi Arabia, Iraq, and Kuwait were among the participants. The prices of gas will sky rocket, possibly quadruple. The western world, particularly the American economy, was devastated. This will spark a stagflation in the Americas. Stagflation is a portmanteau term used to describe a time associated with a high inflation rate and an economic recession.

The 1970s inflation had been awful. There was a combination of high demand and low supply of items like employment, apartments, cars etc. The explanation for this high inflation was that as president of the Federal Reserve, no-one wanted to take office. The consequences of the inflation problems were also calculated by several people under. None really had a mandate either to combat inflation. And what happened was that the rates started to rise and climb. Another factor that triggered inflation was that the bank system was not trusted by the investors and creditors.

The United States had a burst of inflation in the 1970s because no powerful policy makers before Paul Volcker became Federal Reserve Chairman who put a high emphasis on preventing inflation until the 1980s. The 1960's policies left uncomfortable dilemmas to economic policy makers of the 1970's. They were "Bad Cards Dealed with" These "evil cards" combined with poor luck contributed to high inflation.
The last reason was that the great depression made it impossible to accept that the economic cycle was a fluctuation throughout, rather than a deficit below expected production and job prospects.

Declaring his intention to pursue "peace with dignity" in Vietnam, Nixon initiated a policy known as Vietnamization, which called for the gradual withdrawal of American troops from the conflict while preparing South Vietnamese armed forces to take over their own defense. Functionaries of the Nixon administration signed a peace deal with Communist North Vietnam in January 1973. In March of the same year the last American combat troops left Vietnam. However, the hostilities ended, and North Vietnam defeated South Vietnam in 1975 and unified the country under Communist rule. Nixon made landmark trips to China and the Soviet Union in 1972, in addition to dealing with the Vietnam War. He the ties between these Communist nations and the United States, helping to pave the way for formal diplomatic relations. Nixon has also signed significant treaties to restrict nuclear weapons development.