Economics

1968 - Present Day

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

Economics and Presidents

At 1967, inflation and

unemployment were high, due
to deficit spending.
Oil prices were affected by
conflicts in the Middle East.
Nixon attempted to resolve the
failing economy, but failed.
Ford succeeded Nixon, but
also failed to prevent inflation

Carters 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.

President Reagans Speech on the Economy

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 to
lower prices, benefitting the consumers. Trickle Down
Wealthy Americans benefitted more since the poor suffered
welfare cuts.
Deregulation: Removed regulations from businesses and other
acts.
National debt increased greatly however, due to defense
spending

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.

Rise of China

Large population led to rise in power

1972 Nixons 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 the
economies of both countries.
Concerns over human rights and outsourcing to China.

US and China

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

Recessions in the United States

Recession: Temporary economic slump where trade

and economic activity are reduced.
In the United States case, the recessions are
characterized by a drop in GDP and an increase in the
national unemployment rate.
Since 1968, the United States has had seven recognized
depressions (adding up to just under seven years of total
depression).
These recessions came with unavoidable scarrings, i.e
long term effects.

The Scarring of Recessions

Education: Losses in jobs or income can be huge effects on

parents 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 for
their own families.
Private Investment: A large decrease in investment in turn reduces
the production rate and capacity for years to come, as well as delay
research and innovations.
Entrepreneurial Activity and Business Formation: A decrease in
consumer demand as well as an increase in debt leads to the
failure of many businesses.

6.1%

-0.6%

Dec 1969 - Nov 1970

(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)