Title: The U.S. Economy of the1960s and 1970s
Headings: The U.S. Economy of the1960s and 1970s
The U.S. Economy of the1960s and 1970s
The 1960s' Effect on the Economy
The 1970s' Effect on the Economy

Content: President Kennedy's assassination in 1963 spurred Congress to enact much of his legislative agenda. His successor, Lyndon Johnson (1963-1969), sought to build a "Great Society" by spreading benefits of America's thriving economy to more citizens. Federal spending increased dramatically, as the government launched such new programs as Medicare (health care for the elderly), Food Stamps (food assistance for the poor), and numerous education initiatives (assistance to students as well as grants to schools and colleges). Military spending also increased as American's presence in Vietnam grew. What had started as a small military action under Kennedy mushroomed into a significant military initiative during Johnson's presidency. Ironically, spending on both wars -- the war on poverty and fighting the war in Vietnam -- contributed to prosperity in the short term. But by the end of the 1960s, the government's failure to raise taxes to pay for these efforts led to accelerating inflation, which eroded this prosperity. The 1970s' Effect on the Economy
The 1973-1974 oil embargo by members of the Organization of Petroleum Exporting Countries (OPEC) pushed energy prices rapidly higher and created shortages. Even after the embargo ended, energy prices stayed high, adding to inflation and eventually causing rising rates of unemployment. Federal budget deficits grew, foreign competition intensified, and the stock market sagged.