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Trade Deficits
Trade balance shifts from surplus to deficit and continues throughout the 1970s. -
Brazilian Markets Crash of 1971
The Brazilian stock market crash impacted the U.S. thought trade, investment flows and more. -
Nixon Shock
The Nixon shock marked the end of the Bretton Woods system, and led to high inflation as well as wage and price freezes. -
Wage and Price Controls
Nixon put a 90-day freeze on wages and prices to help battle inflation. -
Dow Jones IA
In 1972, the Dow Jones Industrial Average crossed the 1,000 mark, a symbol of the strong economy at the time. -
Stagflation
Economists begin using this term when inflation and unemployment rise at the same time. -
Floating Exchange Rates
Major currencies began floating freely, the end of fixed exchange rates. -
Meat Boycott
Many people boycotted the meat industry for a week due to a rapid rise in price. -
Arab Oil Embargo
The OAPEC declared an oil embargo, causing panic and an energy crisis, as well as a high rise in oil prices. -
Recession
The economy enters recession, the worst since the Great Depression. Unemployment and prices were extremely high. It lasted until March 1975. -
Project Independence
Nixon launches Project Independence, with a goal of full energy self-sufficiency by 1980. -
Stock Market Crash/Great Inflation
At this time, the SP 500 plunges 48% from January 1973 to December 1974. -
Unemployment Peak
Reached 9% due to recession. -
Inflation
Inflation reaches 11% annually due to the oil crisis, food prices and lacking of wage and price controls. -
Inauguration of Gerald R. Ford
Gerald R. Ford is inaugurated. -
Intro of IRAs
Employee Retirement Income Security Act (ERISA) establishes individual retirement accounts. -
Commodity Futures Trading Commission Act of 1974
Created CFTC to regulate commodity features and options markets. -
End of Stagflation
Stagflation comes to an end after 2 years. -
Japanese Car Imports
There is a rise in Japanese Car Imports due to gas efficiency -
Energy Policy and Conservation Act
As a response to 1973 oil crisis and aimed to increase energy supplies and prepare for energy emergencies. -
Bribes
In 1976, over 175 U.S. companies admitted to offering over $300 million in bribes since the year 1970. -
Creation of the Department of Energy
Formed to try and help the energy crisis. -
Airline Deregulation Act
Aimed to transform airline industry, did things like removing government control over fares and routes. -
Humphrey Hawkins Act
Established economic policy objectives of price stability and employment, and required Federal Reserve to report to the Congress on its monetary policy twice a year. -
Inflation
At this time, inflation was at a whopping 13.3%. -
Volcker Shock
The monetary policy implemented by the Federal Reserve. Included interest rate increase, tight monetary policy, recession, unemployment, and debt.