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The USA, 1955–92: Conformity and Challenge

The impact of economic change on society

  • 3 things to know
  • Paper 2

Overview

Recall questions on stagflation and the oil crises, the effect on family incomes, homelessness, deindustrialisation and the Rust Belt, and foreign competition.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Numbers

What economic problems hit the 1970s?

Key term

What was stagflation?

Numbers

What caused the oil crises?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What economic problems hit the 1970s?

    Model answer

    Inflation, the 1973 oil crisis, foreign competition and rising unemployment, together called 'stagflation'.

  2. 2

    What was stagflation?

    Model answer

    The combination of high inflation and high unemployment that economists had thought impossible, which discredited the Keynesian consensus.

  3. 3

    What caused the oil crises?

    Model answer

    The OPEC embargo after the 1973 Yom Kippur War quadrupled oil prices, and the Iranian revolution of 1979 produced a second shock.

  4. 4

    How did the oil crises affect daily life?

    Model answer

    Odd-even petrol sales and queues, a national 55 mph speed limit, higher heating costs, and a shift towards smaller and often Japanese cars.

  5. 5

    How did inflation affect family incomes?

    Model answer

    It eroded savings and wages, and median real household income stagnated for the first sustained period since the war.

  6. 6

    Why did homelessness grow?

    Model answer

    Deindustrialisation, cuts in housing subsidies, and the deinstitutionalisation of the mentally ill left a visible homeless population in the cities.

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