In January 1969, President Richard M. Nixon moved slowly on the economy. Nixon avoided to some advisers that were calling for wage and price controls and relied instead on some minor trimming of federal spending during his first year. By mid 1970 the inflation rate had reached 6.5 percent.
The federal government's position in the economy continued growing during the decade. The government played several economic roles: it was at once a consumer, an employer, a regulator, and a social welfare agency. As a consumer it pumped billions of dollars into the economy by supporting scientific research, buying military equipment, building highways, and competing with the Soviet Union. As an employer it provided large numbers of civilian and military jobs. As a regulator the government stepped up its operations to control the economy and shape the business environment. By the end of the decade the average American's real income had increased 50 percent. Median family income rose from $8,540 in 1963 to $10,770 by 1969.
0 Comments
The Vietnam War had several effects on the U.S. economy. The requirements of the war effort strained the nation's production capacities, leading to imbalances in the industrial sector. Factories that would have been producing consumer goods were being used to make items from the military, causing controversy over the government's handling of economic policy. In addition, the government's military spending caused several problems for the American economy. The funds were going overseas, which contributed to an imbalance in the balance of payments and a weak dollar, since no corresponding funds were returning to the country. In addition, military expenditures, combined with domestic social spending, created budget deficits which fueled inflation. Anti-war sentiments and dissatisfaction with government further eroded consumer confidence. Interest rates rose, restricting the amount of capital available for businesses and consumers. Despite the success of many Kennedy and Johnson economic policies, the Vietnam War was a important factor in bringing down the American economy from the growth and affluence of the early 1960s to the economic crises of the 1970s
In early 1963 inflation was stable, corporate profits were at a record high, and the stock market had rebounded, but unemployment was still too high at 5.7 percent.
President Johnson inherited a strong economy from president Kennedy. The growth during his presidency between 1964 and 1965 gave him an annual dividend of $4-5 billion in extra revenues to spend. For the first two years of Johnson’s presidency the inflation rate was just under 2 percent. In 1965 inflation began to pick up slightly, but the GNP (gross national product) grew by $9 billion and unemployment stood at 1.4 percent. The economy was looking better during the winter of 1966: real growth was 9 percent, and with unemployment at 3.8 percent the economy was robust. As it reached 1967 Johnson administration became concerned with inflation. On August 3 Johnson asked congress to impose a temporary 10 percent income tax surcharge. The surcharge became a law on June 28 1968 that was tied to a $6 billion budget reduction. In 1968, Johnson’s almost last month in office, the growth rate was 4 percent and the unemployment rate was only 3.3 percent, but the inflation rate had reached 4.7 percent. |
The average salary in the 1960s was $4,743. The first video game was invented in 1962. Acrylic paint was invented in 1964. 1966 Electronic Fuel injection for cars invented. the microwave oven was invented in 1967 The first hand held calculator invented 1965 Ninety percent of U.S. homes had a television set Cost of a first class postage stamp: 4 cents Life expectancy: 69.7 years j.f Kennedy was assassinated Neil arm strong was the first man to walk on the moon Walt Disney died 1st super bowl was played Gallon of gas=$0.25 pack of Chewing Gum =$0.05 Soft Drink=$0.10 first Walmart opens World Population: 3.039 billion |