Friday, January 2, 2015

The Damage Done to U.S. Economy by 1973 Arab Oil Embargo and after

The wealthiest the average American was would be around 1960 to 1973 when the Arab Oil Embargo took place. This then caused a serious reduction in real buying power to the average American which has continued ever since the decline of the buying power of the average American.

We are presently experiencing a temporary reversal of this during the present price drop of oil and Gas. For example, this price drop is a 55 Billion dollar windfall of buying power to the average American right now.

ON this following graph you can see what damage it did to the U.S. and Europe and other countries when the price of oil quadrupled in price suddenly and took away the buying capacity and prosperity of the average American then. 

If you combine this with the damage done to the U.S. economy by the Viet Nam War you can then understand why Unemployment reached 10% in the early 1980s during a bad recession. This was when I bought land with my savings and built my own house on 2 1/2 acres of land and home schooled my kids to save money and to survive during this time. We made the very best of a very bad economic situation and had a great time (one of the best in my life) until 1985 when we returned to the Northern California Coast and bought a business here.

 

File:Oil Prices 1861 2007.svg

From Wikipedia, the free encyclopedia
Original file(SVG file, nominally 1,396 × 414 pixels, file size: 26 KB)

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