What Caused The Decline Of The Economy In The 1970's

In the beginning of the 1970's the United States of America experienced a rapid decline in its economy caused by two different energy crisis. The cause of the energy crisis was due to the 1973 Organization of Petroleum Exporting Countries (OPEC) Oil Embargo, 1979 Iranian Revolution, the United States increase consumption of gas, and it's dependency on foreign oil. Although the energy crisis lasted only seven years it left many changes within the country. In 1973, OPEC placed an oil embargo on the United States and any other country that tried to help Israel because of our “ decision to re-supply the Israeli military” and so that they may “gain leverage in the post-war peace negotiations” (Oil Embargo, 1973–1974). Not only did OPEC cut down on gas production, they increased the sale value of the oil by 350%. While the Arab-Israel war ended the same month it started, it did nothing to decrease the price of oil. By 1974 a barrel of oil went from three dollars to almost twelve dollars a barrel.
By 1970, American gas consumption was on the rise to 21,139,386 from 5,766,542 in the 1950's ( U.S. Natural Gas Total Consumption). “President Nixon asked homeowners to turn down their thermostats and for companies to cut back on work hours; and gas stations were asked to hold their sales to a maximum of ten gallons per customer” (Forty Years After the Oil Embargo). Americans started discarding gas guzzling American cars for more gas efficient foreign cars. The “energy crisis was a huge blow to the American automotive industry, which had for decades turned out bigger and bigger cars and would now be outpaced by Japanese manufacturers producing smaller and more fuel-efficient