HST 210 Lecture Notes - Fiscal Conservatism, Limited Government, Air Conditioning
8 Sep 2013
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Document Summary
Us"s declining share of the world market (exports) undermines postwar prosperity: by the seventies, countries like germany and japan are beginning to outproduce the us, reducing their share of the world market. 1955, merchandise exports form the us comprised 32 percent of the world market. By 1970, it had dropped to 18 percent. Competition from cheap foreign imports undermines american manufacturing. With the 1973 oil embargo by opec (organization of petroleum exporting countries), gas prices quadrupled: other prices rose with the price of oil it affected the cost of everything. After egypt and syria attacked israel in 1973, opec announced an embargo on oil shipments to israel"s allies, including the us: underlined how dependent the us was on foreign oil supplies (mostly owing form the middle east) Decline in a region"s or country"s manufacturing base (which relocates to low-wage regions or countries). Deindustrialization devastates the us midwest and northeast.
