Editing 1970s (section)

==Economy==
{{Further|1973–1975 recession}}
The 1970s were perhaps the worst decade of most industrialized countries' economic performance since the [[Great Depression]].<ref name="'70s 292">{{cite book|title= How We Got Here: The '70s|last= Frum|first= David|author-link= David Frum|year= 2000|publisher= Basic Books|location= New York|isbn= 0-465-04195-7|pages= [https://archive.org/details/howwegothere70sd00frum/page/292 292–293]|url= https://archive.org/details/howwegothere70sd00frum/page/292|url-access= registration}}</ref> Although there was no severe [[economic depression]] as witnessed in the 1930s, economic growth rates were considerably lower than previous decades. As a result, the 1970s adversely distinguished itself from the prosperous postwar period between 1945 and 1973. The oil shocks [[Arab Oil Embargo|of 1973]] and [[1979 energy crisis|1979]] added to the existing ailments and conjured high inflation throughout much of the world for the rest of the decade. U.S. manufacturing industries began to decline as a result, with the United States running its last trade surplus ({{as of|2009|lc=y}}) in 1975. In contrast, Japan and West Germany experienced economic booms and started overtaking the U.S. as the world's leading manufacturers. In 1970, Japan overtook West Germany to become the world's second-largest economy.<ref name="secondecon" /> Japan would rank as the world's second-largest economy until 1994 when the [[European Economic Area]] (18 countries under a single market) came into effect.

In the US, the average annual inflation rate from 1900 to 1970 was approximately 2.5%. From 1970 to 1979, however, the average rate was 7.06%, and topped out at 13.29% in December 1979.<ref>{{Cite web|url=https://inflationdata.com/articles/inflation-cpi-consumer-price-index-1970-1979/|title=Inflation and CPI Consumer Price Index 1970–1979|website=InflationData.com}}</ref> This period is also known for "[[stagflation]]", a phenomenon in which inflation and unemployment steadily increased. It led to double-digit interest rates that rose to unprecedented levels (above 12% per year). The prime rate hit 21.5 in December 1980, the highest in history.<ref name="'70s 292"/> A rising cost of housing was reflected in the average price of a new home in the U.S. The average price of a new home in the U.S. was $23,450 in 1970 up to $68,700 by 1980. By the time of 1980, when U.S. President [[Jimmy Carter]] was running for [[1980 United States presidential election|re-election]] against [[Ronald Reagan]], the [[Misery index (economics)|misery index]] (the sum of the unemployment rate and the inflation rate) had reached an all-time high of 21.98%.<ref>{{Cite web|url=https://inflationdata.com/articles/misery-index/|title=Misery Index|website=InflationData.com}}</ref> The economic problems of the 1970s would result in a sluggish cynicism replacing the optimistic attitudes of the 1950s and 1960s and a distrust of government and technology. Faith in government was at an all-time low in the aftermath of Vietnam and Watergate, as exemplified by the low voter turnout in the 1976 United States presidential election.
There was also the [[1973–74 stock market crash]].

Great Britain also experienced considerable economic turmoil during the decade as outdated industries proved unable to compete with Japanese and German wares. Labor strikes happened with such frequency as to almost paralyze the country's infrastructure. Following the [[Winter of Discontent]], Margaret Thatcher was elected prime minister in 1979 with the purpose of implementing extreme economic reforms.

In Eastern Europe, Soviet-style command economies began showing signs of stagnation, in which successes were persistently dogged by setbacks. The oil shock increased East European, particularly Soviet, exports, but a growing inability to increase agricultural output caused growing concern to the governments of the [[COMECON]] block, and a growing dependence on food imported from democratic nations.
[[File:Line at a gas station, June 15, 1979.jpg|thumb|right|Line at a gas station in Maryland, June 15, 1979.]]
On the other hand, export-driven economic development in Asia, especially by the [[Four Asian Tigers]] (Hong Kong, South Korea, Singapore, and Taiwan), resulted in rapid economic transformation and industrialization. Their abundance of [[cheap labor]], combined with educational and other policy reforms, set the foundation for development in the region during the 1970s and beyond.

===Oil crisis===
Economically, the 1970s were marked by the [[1970s Energy Crisis|energy crisis]] which peaked in 1973 and 1979 (see [[1973 oil crisis]] and [[1979 oil crisis]]). After the first oil shock in 1973, gasoline was rationed in many countries. Europe particularly depended on the Middle East for oil; the United States was also affected even though it had its own oil reserves. Many European countries introduced car-free days and weekends. In the United States, customers with a license plate ending in an odd number were only allowed to buy gasoline on odd-numbered days, while even-numbered plate-holders could only purchase gasoline on even-numbered days. The realization that oil reserves were not endless and technological development was not [[sustainable development|sustainable]]{{citation needed|date=January 2012}} without potentially harming the environment ended the belief in limitless progress that had existed since the 19th century.{{citation needed|date=January 2012}} As a result, [[environmentalism|ecological awareness]] rose substantially, which had a major effect on the economy.