Analyze The Responses Of President Nixon's Economic Changes Between 1970 And 1970
The President Nixon years were shaped by trying to respond to negative economic conditions caused by earlier decisions. In 1969, inflation was slightly less than 5%. Anyway, this was the highest inflation rate since the Korean War.
Nixon’s years saw high inflation, high interest rates, and enormous government spending resulting from LBJ’s Great Society, LBJ’s War on Poverty, and the Vietnam War that involved several Presidents. Causing additional economic stress was the faulty Nixon decisions regarding introducing wage and price controls and abandoning the gold standard.
The long range faulty decision was dropping the gold standard. This allowed the US dollar to float against other currencies. This created world-wide confusion and enormous stress regarding trade dealings. The convertibility of the US dollar into gold was terminated.
International financial operations suffered. They suffered not only because of the currency floatation …show more content…
Inflation rose rapidly. Even so, in an unusual move, so did unemployment. This special situation was referred to as stagflation. Borrowers, especially home buyers, were hit with extreme high interest rates as efforts were made to curb inflation.
The cost of the Vietnam War, compounded by the US invasion of Cambodia, plus OPEC’s imposed oil crisis, brought on the 1973-75 recession. Numerous problems and social tragedies became associated with the Vietnam War. Anti-war protests erupted. Four student demonstrators were shot at an anti-war rally. Two black students were killed at Mississippi Jackson State University. Vietnam became a major economic, social, and political problem. American troops after years of limited support, both politically and financially, finally left Vietnam in 1973.
Many of President Nixon’s domestic policies tended to be liberal. For example, Nixon proposed, unsuccessfully, a family assistance program that promised an income of $1,600. This would be a little more than $10,000
Nixon’s years saw high inflation, high interest rates, and enormous government spending resulting from LBJ’s Great Society, LBJ’s War on Poverty, and the Vietnam War that involved several Presidents. Causing additional economic stress was the faulty Nixon decisions regarding introducing wage and price controls and abandoning the gold standard.
The long range faulty decision was dropping the gold standard. This allowed the US dollar to float against other currencies. This created world-wide confusion and enormous stress regarding trade dealings. The convertibility of the US dollar into gold was terminated.
International financial operations suffered. They suffered not only because of the currency floatation …show more content…
Inflation rose rapidly. Even so, in an unusual move, so did unemployment. This special situation was referred to as stagflation. Borrowers, especially home buyers, were hit with extreme high interest rates as efforts were made to curb inflation.
The cost of the Vietnam War, compounded by the US invasion of Cambodia, plus OPEC’s imposed oil crisis, brought on the 1973-75 recession. Numerous problems and social tragedies became associated with the Vietnam War. Anti-war protests erupted. Four student demonstrators were shot at an anti-war rally. Two black students were killed at Mississippi Jackson State University. Vietnam became a major economic, social, and political problem. American troops after years of limited support, both politically and financially, finally left Vietnam in 1973.
Many of President Nixon’s domestic policies tended to be liberal. For example, Nixon proposed, unsuccessfully, a family assistance program that promised an income of $1,600. This would be a little more than $10,000