Arab Oil Embargo 1970

The mid nineteenth century heralded for America the beginnings of a globalization of economies from all corners of the world. With America’s recovery from The Great Depression complete as well as the significant production and economic growth provided through the economic boom that World War II produced, America was left standing as the biggest economic and political powerhouse of the 1960s. While America was establishing it’s place among other nations as well as aiding Japan with its recovery, two major events occurred that crippled economic growth between 1950 to 1980. These events as stated by elcoushistory were Saudi Arabia’s embargo on oil called the “Arab Oil Embargo” as well as The Vietnam War. Both events crippled America’s economic growth substantially, although it was still experiencing a growth rate of 2.16% of gdp growth per year from 1950-2007 as shown by C.I. Jones in his Stanford research labeled The Facts of Economic Growth (6). According to the …show more content…
With the effects of The Arab Oil Embargo still being felt and the other factors contributing to inflation, the increase of unemployed workers approached close to Great Depression era levels as the 1960’s & 1970’s were times of political turmoil as the vietnam raged and eventually ended. As this war ended, it left behind the economic consequences of war and helped to contribute to almost creating another era of emotional & economic depression for both the returning soldiers and The American People instead of the benefits that previous wars such as World War II provided economically by leaving an energized workforce, raising production efficiency, and an ever increasing national GDP (Hughes & Cain,