America's Changing Economy During The 1970s

The nation’s economic power and international influence during the 1970s was almost entirely affected by the changing economy. The events and trends that came with America shifting away from a manufacturing market resulted in high unemployment and inflation. The nation faced competition from Europe and Asia as their economies grew with the help of U.S. aid. The nation eventually hit stagflation, and the inability of any U.S. President to combat it led to a decrease in confidence. Tensions in American-Middle Eastern relations also led to Americans losing faith in its government and leaders, eventually leading to a new way of thinking all together. After WWII, America promoted the economic growth and subsidized the defenses of Japan, Germany, South Korea, and Taiwan, allowing them to spend more energy and time fueling their economies. Soon, America was competing against the more productive markets of these nations, resulting in many American corporations being put out of business. Union workers were hit hard, as their positions were eliminated completely or they were forced to shift to lower wage
tensions with the Middle East hit a previously unmatched high. America’s need for oil fueled its relationship with Iran and it’s support for the shah. The shah, however, was widely unpopular in Iran, and America’s support fueled anti-American sentiments in Iran. These sentiments boiled over during the Iranian Revolution in 1979, and when the shah received cancer treatment in the U.S., it prompted the storming of the U.S. embassy in Tehran and the capture of 53 Americans. Dubbed the Iranian Hostage Crisis, the captured Americans were not released until Reagan’s inauguration, 444 days later. Carter’s inability to free the Americans resulted in him being viewed as weak by the nation. Americans lost faith in the government’s ability to protect and look after them, further challenging their confidence in the nation’s international