Pd09_Pr09-Economics 1968- Present Day

8/8/2019 Pd09_Pr09-Economics 1968- Present Day

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Economics1968 - Present Day

Andy Tu, David Veller, Aaron Yang, Lucy Wainger, Arty Zhatmaryan


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Economics and Presidents

! At 1967, inflation and

unemployment were high, dueto deficit spending.

! Oil prices were affected byconflicts in the Middle East.

! Nixon attempted to resolve thefailing economy, but failed.

!

Ford succeeded Nixon, butalso failed to prevent inflation


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Carter’s Presidency

! Succeeded Ford and tried to reduce economic reliance on oil.! US economy was shifting away from manufacturing.! West Germany, Taiwan, Japan, and Korea had rising economies which competed with US

economy.! Failed to boost the economy.


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President Reagan’s Speech on the Economy


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Reaganomics (1980)

! Budget Cuts: School lunches, food stamps, mass transit.! Tax Cuts: 25% income tax decrease within 3 years.! Supply side economics: Cutting income taxes would lead to

banks having more money. This would allow businesses tolower prices, benefitting the consumers. “Trickle Down”

! Wealthy Americans benefitted more since the poor sufferedwelfare cuts.

! Deregulation: Removed regulations from businesses and other

acts.! National debt increased greatly however, due to defense

spending


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NAFTA

! Program which lowered tariffs on products in trade between US-Mexico-Canada! All 3 countries benefited from lower prices! US lost jobs due to factories being moved to Mexico

! Mexico was not ready to be a big exporter! Canada benefitted as well.


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Rise of China

! Large population led to rise in power! 1972 Nixon’s visit to China opened up relations between

US and China.! China was included to WTO in 2001. Free trade boosted

Chinese economic growth.! China is a major creditor to US debit. Major point in US

foreign policy with China.

! Trade between US and China is a crucial part for theeconomies of both countries.

! Concerns over human rights and outsourcing to China.


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US and China


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Globalization

! World economy develops.! International trade tariffs lowered in effort to promote trade. (WTO, NAFTA, GATT)! Job outsourcing affected US economy.! Service jobs increases while manufacturing and industry decreases.! Technology: Business through the web.

! Creation of World Bank


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Recessions in the United States

! Recession: Temporary economic “slump” where tradeand economic activity are reduced.

! In the United States’ case, the recessions arecharacterized by a drop in GDP and an increase in thenational unemployment rate.

! Since 1968, the United States has had seven recognizeddepressions (adding up to just under seven years of total

depression).! These recessions came with unavoidable scarrings, i.e

long term effects.


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The Scarring of Recessions

! Education: Losses in jobs or income can be huge effects onparents’ abilities to give them the education they need.

! Opportunity: Having to resort to certain jobs due to recessions (if

any at all) makes it difficult for people to adequately provide fortheir own families.

! Private Investment: A large decrease in investment in turn reducesthe production rate and capacity for years to come, as well as delayresearch and innovations.

!

Entrepreneurial Activity and Business Formation: A decrease inconsumer demand as well as an increase in debt leads to thefailure of many businesses.


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. . (11 months)

9.0% -3.2%

Nov 1973 - Mar 1975

(1 year 4 months)

7.8% -2.2%Jan - July 1980

(6 months)

10.8% -2.7%July 1981 - Nov 1982

(1 year 4 months)

7.8% -1.4%July 1990 - Mar 1991

(8 months)

6.3% -0.3%Mar 2001 - Nov 2001

(8 months)

10.0% -4.3%Dec 2007 - June 2009

(1 year 6 months)

Pd09_Pr09-Economics 1968- Present Day

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