Chole Muldrow- 1970's economy

Chloe’ Muldrow
March 17, 2009
Section 9-1


During the 70’s the economy was disappointing the expectations that Americans built up during the past World War II years. We had about two oil crises of 1973-74 and 1979 that served as bookends for slow economic growth. This led to a new term being coined which was called stagflation. It led a long lesson for great institutions of the U.S towards big business, the government and etc. of their powerless affect to the economy.
Since the Great Depression the 1970’s was the most tragic time for the American economy. Shortly after a quarter of this century the growth and prosperity, the downturn of this century hit with a powerful force. Cost went up, unemployment soared, exports were low, and almost every economic indicator went downhill during the 1970’s.
The Nixon, Ford and Carter administrations tried a numerous amount of things to resuscitate the economy but instead it brought more burdens because unintended problems. In 1972 the U.S. decided to sale the Soviet Union millions of wheat in effort to reduce the trade deficit. This caused many problems in the year 1973. Te 1970’s proved to be a decade of tumultuous change for the automobile industry in the U.S. This caught first in the economic turn oil, price control, and then in the energy crises of 1973-74 and 1979.
Stagflation was an economic recession basically. People began to loose their jobs and things on the market began to get higher every second. Nothing was considered a reasonable price. People began to beg for their Social Security to come because they began to believe there was nothing left that they could afford. The inflation helped workers and retirees.
The government needs for funds began to get bigger and bigger and led greater government borrowing. This pushed interest’s rates and increased costs for businesses. From this going on unemployment rose to very uncomfortable levels. They had to find a way to fix this big problem.
In 1977 president Jimmy Carter tried to help out our economy crises. He tried to combat economic increasing government spending. He also established voluntary wage and price guidelines. These two plans did not work properly at all. They failed tremendously.
In the 1970’s we saw the software contract programming industry growing rapidly. They were so good that they soon became known as the “Professional Services”. They were given this name because a known fact was given that they provided a board range of consulting and designing services. They also would even program it for you if needed. This software product was established as a viable source of software for people who often use computers.
In the beginning of the 1970’s people believed the Software from Vendor would meet all of there needs. They didn’t think it would be a problem with this company at all. By time the 80’s came this Software was to most popular out there. In 71 ICP had there first annual million dollar award program. The program recognized Software products that made over a million dollars in revenue.
During this time their were only twenty nine software products that actually made the list. By time 1976 came this program grown to 100 products that made the list. This was just from 64 software companies imagine if it was more companies. Only four of these companies passed $20 million dollars. A company name Cincom’s Total database management system received an award for $50 million dollars.

The first invention of the PC was made in the mid-1970. A little after these PC’s was created they led to the founding of first PC software firms. They made software’s like Microsoft, Software Arts, etc. Creating these made the VisiCalc spreadsheet program. Besides the success the software industry was making many realized this was a major investment opportunity