1973 energy crisis and its effect on world economy.

Origins of the 1973 world oil shock

World competition over resources

The Arab-Israeli conflict triggered an free energy crisis in the making. Before the embargo, the industrialized West, particularly the United States, had taken cheap and plentiful petroleum for granted. (Indeed, the form American cities took after(prenominal) World War II - with expansive suburbs full of detached, single-family homes - depended on the automobile as the principal means of transportation - a form that consumes oil en masse as fuel.) surrounded by 1945 and the late 1970s, the West and Japan consumed to a greater extent oil and minerals than had been utilise in all previous recorded history. Oil utilisation in the United States had more than doubled between 1950 and 1974. With still 6 percent of the worlds population, the U.S. was consuming 33 percent of the worlds energy. At the same time, Americas economy accounted for a quarter of total world-wide production, meaning US workers were over 5 times more productive than the global average (because of their advanced industrial sector, which accounts for the come out of energy usage).

The fall of the dollar

U.S. economic policies had an important effect on the crisis. While the OPEC boycott was an immediate trigger, historians increasingly see the crisis as being rooted in American economic policies.

Oil, especially from the Middle East, was paid for in United States dollars, at prices rooted(p) in dollars. U.S. President Richard Nixon had inherited an economy in which harvest-tide was already sluggish, in which inflation was already troubling. By the spend of 1971, the president was under strong public pressure to manage decisively to end the dilemma of rising prices and general economic stagnation (see stagflation). Nixon thus released the dollar from the fluctuating gold measure that had controlled its worth since the signing of the Bretton Woods pact...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper