1973 energy crisis and its effect on world economy.

Origins of the 1973 world oil shock World competition everyplace resources The Arab-Israeli conflict triggered an free dynamism crisis in the making. Before the embargo, the industrialize West, particularly the United States, had taken cheap and plentiful crude oil for granted. (Indeed, the form American cities took after(prenominal) World War II - with luxurious suburbs full of detached, single-family homes - dep barricadeed on the automobile as the principal means of transportation - a form that consumes oil en masse shot as fuel.) surrounded by 1945 and the late 1970s, the West and lacquer consumed to a greater extent oil and minerals than had been utilise in all previous recorded history. Oil utilisation in the United States had more than doubled between 1950 and 1974. With still 6 percent of the worlds population, the U.S. was consuming 33 percent of the worlds energy. At the very(prenominal) time, Americas economy accounted for a quarter of total world-wide pro duction, meaning US workers were over 5 times more productive than the world-wide average (because of their advanced industrial sector, which accounts for the come out of energy usage). The fall of the dollar U.S. economic policies had an important effect on the crisis. While the OPEC boycott was an immediate trigger, historians increasingly see the crisis as being rooted in American economic policies.

Oil, oddly from the Middle East, was paid for in United States dollars, at prices rooted(p) in dollars. U.S. President Richard Nixon had inherited an economy in which harvest-tide was already sluggish, in which inflation was already troubling. By the spe! nd of 1971, the president was downstairs strong public pressure to manage decisively to end the dilemma of rising prices and general economic stagnation (see stagflation). Nixon gum olibanum released the dollar from the fluctuating gold measure that had controlled its worth since the sign of the Bretton Woods pact... If you want to get a full essay, target it on our website: OrderCustomPaper.com

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