Great Depression 1973 - oil crisis
In the Israeli-Arab war of October 1973 (Yom Kippur War) put the Arab States, the first oil as a political football. With a delivery boycott and reduction of oil exports, the oil producing Arab states look to Israel as a friendly country and force Japan to change its attitude the Middle East conflict to zwingen.Die concerned Western powers react with comprehensive conservation programs to reduce energy consumption. The oil crisis suddenly makes the dependence of the growth company significantly on oil imports. It is one of the crucial factors by western industrialized countries, the worst economic crisis since the end of World War II is triggered.
Another reason for the severe recession in the global economy is in collapse of the international monetary order. It is caused by the high U.S. current account deficit as a result of capital exports in the context of the Vietnam War and the resulting dollar weakness. Given
the growing global interdependence is a solution to the economic problems of developed countries only through international agreements and common action possible. Since 1975, therefore, meet the leaders of the seven leading industrial nations once a year at a World Economic Summit to economic policy, but to advise public policy issues.
The Federal Republic of the boycott is hit hard as they cover their energy needs with imported oil to 55 percent. 75 percent of its crude oil imports from Arab countries it relates. The Bundestag therefore adopted on 9 November 1973 an Energy Security Act, which among other emergency measures provides for energy conservation.
After the relaxation of the political situation in the Middle East lifted oil production while, however, the selling prices increased dramatically. The Federal Republic has to pay 1974 for their imports about 17 billion marks more than in 1973.
Under the oil crisis particularly affected the auto industry and its suppliers. Domestically, sales of cars fall from the previous year by 24 percent. The export is declining. In contrast, the German bicycle industry in the first six months, after the oil crisis to increase its sales by around 25 percent. In the following decades, the industrialized countries try to become less dependent on oil imports. In part, the oil by other Energy sources such as coal, natural gas and replaced the controversial nuclear energy.
West German industrial companies to cut back because of scarce energy resources production part. When consumers make the necessary additional expenditure of energy to a fall in demand in other areas. Economic downturns, especially in the construction and automotive industry are forcing companies to short-time work, mass lay-offs and mergers. The unemployment rate increases 1973-1974 from 2.2 to 4.2 percent.
Another reason for the severe recession in the global economy is in collapse of the international monetary order. It is caused by the high U.S. current account deficit as a result of capital exports in the context of the Vietnam War and the resulting dollar weakness. Given
the growing global interdependence is a solution to the economic problems of developed countries only through international agreements and common action possible. Since 1975, therefore, meet the leaders of the seven leading industrial nations once a year at a World Economic Summit to economic policy, but to advise public policy issues.
The Federal Republic of the boycott is hit hard as they cover their energy needs with imported oil to 55 percent. 75 percent of its crude oil imports from Arab countries it relates. The Bundestag therefore adopted on 9 November 1973 an Energy Security Act, which among other emergency measures provides for energy conservation.
After the relaxation of the political situation in the Middle East lifted oil production while, however, the selling prices increased dramatically. The Federal Republic has to pay 1974 for their imports about 17 billion marks more than in 1973.
Under the oil crisis particularly affected the auto industry and its suppliers. Domestically, sales of cars fall from the previous year by 24 percent. The export is declining. In contrast, the German bicycle industry in the first six months, after the oil crisis to increase its sales by around 25 percent. In the following decades, the industrialized countries try to become less dependent on oil imports. In part, the oil by other Energy sources such as coal, natural gas and replaced the controversial nuclear energy.
West German industrial companies to cut back because of scarce energy resources production part. When consumers make the necessary additional expenditure of energy to a fall in demand in other areas. Economic downturns, especially in the construction and automotive industry are forcing companies to short-time work, mass lay-offs and mergers. The unemployment rate increases 1973-1974 from 2.2 to 4.2 percent.
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