The Golden Age

Nineteen seventy was a period of economic stagnation and recession in much of the Western world. Unlike many previous recessions, nineteen seventies’ economy became known as an era of “stagflation”. Efforts to strengthen America’s anticommunist allies drove the nation’s manufacturing industry into merchandise trade deficit. Global energy shortage had Nations all over the world depending on the Middle East for oil. The combination of women in work force and returning soldiers from Vietnam dramatically increased the nation’s unemployment rate. High unemployment rate coincided with high inflation and energy shortage ended the post-World War II economic boom known as the “Golden Age”.
By the end of 1970’s, the average American ended up even more destitute, as consumer prosperity came to an end, than when the decade began. The seemingly indestructible United States, with its strong military power, prosperity, and thriving economy, appeared to have reached its limitations. Prosperity brought by the “Golden Age” had successive
United States decided to focus on strengthening the bond with its anticommunists allies by promoting emergence of new manufacturing centers in countries like South Korea and Taiwan, as