Applying U S Economic Analysis and Theory
U.S. History, 1965 to 1979 Applying Economic Theory and Analysis By Reece A. Turner Written For Economic 231 At 10:30 TRF Grade: ____ Economic Analysis and Evaluation President Richard Nixon took office in 1969 during a period of broad economic expansion. ... In 1970 Congress passed legislation giving the President authority to implement price and wage controls as part of his economic recovery plan. ... This prompted President Nixon to swing in to action by implementing his economic recovery plan. ... Economic recovery on the whole was exemplified by an 8. ... The Watergate Scandal would eventually remove him form office and leave the oil problem to his successor President Gerald Ford Introduction This paper will deal with a brief analysis of the Presidency of Richard Nixon for the years of 1965-1979. The topic for this analysis is to show how President Nixon dealt with the OPEC oil shocks of the time period. ... I will show the reader major economic events that outline the impact of the President’s policies. The theory that I will use to explain the President’s policies will be the Quantity Theory of Money (QTM). ... For detailed explanations of each prediction I will use graphical analysis to examine the actual impact. This graphical analysis will show direct implications for the QTM, which I will interpret. ... What President Nixon’s purpose was in creating a growing inflation. ... Research To show these facts I have gathered information from a variety of sources ranging from historical summaries of the time period, to the personal papers of the President, and to include basic economic facts. The economic facts that were gathered were based on the following criteria: (1) the Consumer Price Index, (2) Government Spending, (3) Gross Domestic Private Investment, (4) the M2 money stock, (5) Gross National Product, (6) Gross National Product measured in constant dollars, (7) the 90 Day Treasury Bill Rate, (8) the Inflation Rate, (9) the Unemployment Rate. To supplement this basic economic data I have included a timeline that shows the historical context of this period, and to further explain the timeline is an accompanying economic essay. ... Finally the economic history essay incorporates these two factors into one body of work allowing the reader to refer to either summary or explanation. ... The timeline will explain the main economic events that relate to the topic of President Nixon and the OPEC oil crisis. ... When looking at the data table one can relate change in numbers, in a given category, by comparisons with the timeline outlining major economic occurrences. ... Economic Timeline for Period of 1965-1978 1965 President Johnson signs the Medicare and Medicaid Amendments. ... In a memorandum to the Secretary of the Interior President Nixon resumes full control and responsibility for the nation’s oil import policies. ... American imported oil levels reach above 6 million barrels a day; deepening America’s dependence on foreign oil imports. President Nixon initiates his New Economic Policy to counteract inflation, Which includes wages and price freezes, along with devaluing the dollar by moving it off of the gold standard in hopes of achieving trade balance. ... DATA TABLE INSERT Historical Events and Theoretical analysis In 1968, President Richard Nixon took office and recognized a growing problem in the form of the OPEC organization.