Stagnation of the 1970's
The "Stalmated Seventies", as they have been called, were a reverse of the economic boom prior. Productivity gains slowed, and the income of the average American family stagnated and things became limited.
What cause this stagnation?
One factor that has been argued was the increasing amount of women and teenagers in the working demographic, and how they, with typically fewer skills, did not take full-time long-term jobs.
Another factor was the shift from a manufacturing economy to a service economy. The money that fueled the previous era of surplus was no longer being created as manufacturing stopped being the center of jobs and output.
The biggest factor of the stagnation and economic downturn of the 1970's was the inflationary overspending of the military and the welfare system. Too much money was given away without adding to the supply of goods, which caused inflation.
Another factor was the shift from a manufacturing economy to a service economy. The money that fueled the previous era of surplus was no longer being created as manufacturing stopped being the center of jobs and output.
The biggest factor of the stagnation and economic downturn of the 1970's was the inflationary overspending of the military and the welfare system. Too much money was given away without adding to the supply of goods, which caused inflation.