Why were the 1970s a period of discomfort for many Americans?

History

1 answer:

denis-greek [22]2 years ago

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Answer:

The 1970s were a period of discomfort for many Americans because of stagflation and unemployment.

Explanation:

As a consequence of the 1973 oil crisis, it emerged as Arab revenge for American and Western support for Israel in the Yom Kippur War.

Through a cessation of production and supply, OPEC generated an exponential rise in the price of oil, the main raw material on which the western economies, mainly the United States, were based. With the rise in oil prices, the remaining prices of raw materials rose, due to the increase in transportation costs. This generated inflation, which in turn caused many companies, due to high costs, to cut wages, generating in turn a situation of economic stagnation at the social level. In other words, the population began to earn less money and spend more to buy the same products. This process, called stagflation (stagnation and inflation).

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