1973–1975 recession facts for kids

The 1973–1975 recession was a tough time for the economy in many parts of the world, especially in Western countries. It was different from other economic slowdowns because it had two big problems at once: high unemployment (meaning many people couldn't find jobs) and high inflation (meaning prices for things like food and clothes went up very quickly). This unusual situation is called stagflation.

What Caused This Recession?

This recession had a few main causes. One big reason was the 1973 oil crisis. This happened when some oil-producing countries stopped selling oil to certain nations. This made oil prices skyrocket! Since oil is used for almost everything – from making products to transporting them – this made everything more expensive.

Another cause was the end of the Bretton Woods system. This was a set of rules that had helped keep money exchange rates stable around the world since World War II. In 1971, the United States changed its money system, which made the Bretton Woods system fall apart. This created a lot of uncertainty in the global economy.

How It Affected the United States

In the United States, the recession officially lasted from November 1973 to March 1975. This period covered parts of the presidencies of Richard Nixon and Gerald Ford. Even after 1975, the effects of the recession were felt for several more years. People continued to struggle with high prices and job worries through the time of President Jimmy Carter and even into the first years of President Ronald Reagan's time in office.

Images for kids

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  US unemployment rate, 1969–1981

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  Oil prices in USD, 1861–2015 (1861–1944 averaged US crude oil, 1945–1983 Arabian Light, 1984–2015 Brent). Red line adjusted for inflation, blue not adjusted.

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  This chart shows how the economy changed during the 1973–75 recession in the United States. It looked like a "U" shape, meaning the economy was weak for a long time.       Percent change from preceding period in real gross domestic product (annualized; seasonally adjusted);       Average GDP growth 1947–2009 Source: Bureau of Economic Analysis

See also

In Spanish: Recesión de 1973-1975 para niños