Learning from the 1970 Recession

Everyone knows that the worst economic situation that happened was during the 1930s just before World War II.

It was the Great Depression that pushed millions of people out of jobs and became very financially strapped. Luckily, those times were over and the country moved on to greater heights.

But the Great Depression is not the last recession the world has encountered. Between the current and the Great Depression during the 1930s, there are a few recessions that happened and some of them even left an indelible mark. Research on different recessions show us how to cope with the current challenges of the economy.

There is always a popular belief that each economic recession is unique because of the different situations and conditions that are happening during that time period. Part of that claim is actually true.

Today’s recession is unique in the sense that the world could be easily affected by one country’s economic struggle most especially if that country is the USA.

It is also the time of rapid communication because of online connectivity. Information and analysis is overflowing all over the internet.  Among the different recessions in the past, today’s recession can be compared with the recession that happened during the 1970s.

Similarities to the Past Recession

There are two well known similarities between the 1970s recession and the current recession:

• The Price of Fuel – Before the recession started, the whole world experienced a significant increase of the prices of fuel during the 1970s. This also happened before the current recession started.

Although the primary cause of the current recession is due to the sub-prime mortgage crisis, the price of fuel did increase to a very alarming level before it came down which was also in time for recession.

• Political Struggles – The political stage of the US was placed into the limelight once again in 2008 because of the US Presidential Elections. Everyone is clearly having thoughts on the political system because of the perceived failings of the current administration.

Everyone only showed a sign of relief when the election is over a new US president is elected – only that recession is nearly on its full swing.

The Hopeful Outcomes

On the other hand, if you follow the 1970s recession, there are good things that actually happened. This should also be your guide for the upcoming months.

Not only will this help you cope up with recession but it will also give you hope that something better will actually come out of this unique economic period.

• Start-Ups Emerging – The early 1970s was the year of start-ups that became some of the world’s most revered companies – Oracle, Microsoft, FedEx and Apple are only some of the companies that are striving today that started out during these years.

This just means that there are small industries today that are harnessing the recession through the efficient use of more affordable products in the market today.

• The End of War – Mid 1970s signaled the end of the Vietnam War. The US today is “still at war” in Iraq which has forced the country to spend Trillions of dollars every year. Hopefully, this trend will be emulated which will give relief to everyone.

The current economic situation should never let you down. History has always a way of telling you there is still hope despite the challenges everyone is facing today.