CHAPTER 28: ECONOMIC TROUBLES IN A NEW ERA (1970s)
I. BIG PICTURE (Context)
Core Idea:
The 1970s marked a shift from:
Post-WWII prosperity
Economic crisis + political distrust
Key Theme:
This was an “era of limits”:
Slower economic growth
Less faith in government
Social and cultural conflict
II. CHRONOLOGICAL TIMELINE (CAUSE → EFFECT)
Early 1970s
Vietnam War ends → economic strain remains
Beginning of energy crisis
1973–1974
Oil embargo → gas shortages, inflation
Watergate scandal unfolds
Mid-1970s
Economic decline (stagflation)
Social movements continue (women, LGBTQ+, religion)
Late 1970s
Jimmy Carter presidency
Continued economic struggles + energy crisis
III. LIMITS TO GROWTH AND PROSPERITY
1. Economic Transformation and Decline
Key Concept: Deindustrialization
Factories move:
Overseas (cheaper labor)
To the South/West (lower wages, fewer unions)
Effects:
Loss of manufacturing jobs (Rust Belt decline)
Rise of service economy
Key Concept: Stagflation
Combination of:
Stagnation (slow growth + unemployment)
Inflation (rising prices)
Why this was unusual:
Normally:
Inflation happens with growth
Recession lowers prices
But in the 1970s → BOTH happen together
Cause → Effect:
Global competition + oil shocks
Higher production costs
Higher prices + fewer jobs
Stagflation
2. Energy Crisis
Key Event:
1973 oil embargo
What Happened:
OPEC stopped selling oil to U.S. (because of support for Israel)
Effects:
Gas shortages (long lines)
Rising prices
Fuel rationing
Cause → Effect:
Oil embargo
Energy shortage
Higher prices
Economic slowdown
3. Environmentalism
Key Development:
Rise of environmental awareness
Example:
Earth Day (1970)
Government Action:
Environmental regulations (clean air, water)
Shows growing concern about limits to growth
4. Urban Crisis and Suburban Revolt
Urban Problems:
Poverty
Crime
Declining tax base
Suburban Response:
People move to suburbs
Resist taxes for urban programs
Cause → Effect:
Urban decline
Middle-class leaves cities
Cities lose money
Problems worsen
IV. REFORM AND REACTION IN THE 1970s
1. Civil Rights in a New Era
Shift:
From legal equality → economic equality
Issues:
Affirmative action
School busing
Key Case:
Regents of the University of California v. Bakke
Ruled:
Race CAN be considered
BUT quotas are unconstitutional
2. Women’s Movement
Major Goal:
Equal Rights Amendment (ERA)
Key Figure:
Phyllis Schlafly
Opposed ERA → argued it harmed traditional family roles
Cause → Effect:
Feminism rises
Conservative backlash
ERA fails
3. Gay Rights Movement
Growth after:
Stonewall Riots
1970s Development:
Activism expands
Public visibility increases
4. After the Warren Court
Court becomes more conservative
Focus:
Limiting earlier liberal rulings
Slowing expansion of rights
V. THE AMERICAN FAMILY UNDER STRESS
1. Working Families & Deindustrialization
Changes:
More women working
Dual-income households
Reason:
Economic pressure (need more income)
2. Navigating the Sexual Revolution
Key Changes:
More acceptance of:
Birth control
Divorce
Premarital sex
Result:
Changing family structure
3. Religion: The New Evangelicalism
Key Idea:
Return to traditional values
Key Figure:
Jerry Falwell
Movement:
Rise of conservative Christian politics
Cause → Effect:
Social change (sexual revolution)
Concern about morality
Rise of evangelical movement
VI. POLITICS IN FLUX (1973–1980)
1. Watergate and Fall of a President
Key Event:
Watergate scandal
What Happened:
Break-in at Democratic headquarters
Cover-up by Nixon administration
Result:
Richard Nixon resigns (1974)
First U.S. president to resign
Cause → Effect:
Government corruption exposed
Public distrust increases
Weakening of presidency
2. Jimmy Carter: The Outsider
Background:
Not part of Washington establishment
Goals:
Restore honesty
Fix economy
Challenges:
Inflation
Energy crisis
Weak public confidence
Key Concept:
“Crisis of Confidence” (Malaise)
Americans feel:
Economic anxiety
Lack of direction
VII. KEY CAUSE → EFFECT CHAINS (IMPORTANT)
1. Economic Decline → Social Change
Job loss + inflation
Families need two incomes
More women in workforce
Changing gender roles
2. Social Change → Conservative Backlash
Feminism + sexual revolution
Fear of losing traditional values
Rise of evangelical movement
Growth of conservatism
3. Watergate → Distrust in Government
Political scandal
Nixon resigns
Public loses trust
Political instability
4. Energy Crisis → Economic Problems
Oil embargo
Higher energy costs
Inflation
Economic stagnation
VIII. KEY TERMS (CLEAR DEFINITIONS)
Stagflation → inflation + unemployment at the same time
Deindustrialization → loss of factory jobs
Sunbelt → growing South/West region
Rust Belt → declining industrial North
ERA → amendment for gender equality (failed)
Evangelicalism → conservative religious movement
Watergate → political scandal causing Nixon’s resignation
Energy Crisis → oil shortages and rising prices
FINAL SUMMARY (EXAM READY)
The 1970s ended the era of easy prosperity
The U.S. faced:
Economic decline (stagflation)
Energy shortages
Political distrust (Watergate)
Social movements continued but caused strong conservative backlash
This period set the stage for the rise of conservatism in the 1980s