History of Economics. World economic crises of the late 20th century (the most important)

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History of Economics. World economic crises of the late 20th century (the most important)

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70. World economic crises of the late XX century

First, after World War II, global cyclical crisis broke out in 1974-1975 yyy. It hit all sectors of the economy in all countries, caused a huge drop in production, and in its destructive power was compared with the "Great Depression" (1929-1933).

The highly developed countries suffered more than others from the crisis. Thus, industrial output in Japan decreased by 20%, by 15% in the USA. In all countries, there was an underutilization of production capacities, which led to mass layoffs of workers. The most important cause of the economic upheavals that occurred in the mid-6s was the intertwining of cyclic production crises with structural crises.

Structural crises - these are long-term shocks of individual sectors of the world economy, such that they play a key role and affect the entire world economy.

Since the mid 1970s. there were several structural crises. Their common base was energy crisis. The energy crisis erupted after the creation of OPEC, an organization of oil producing and exporting countries, since this organization began to determine the size of oil production for each member country, the size of its exports and, on this basis, dictate prices on the world oil market.

As a result of a huge jump in oil prices (from 2 5-3 to 10, and subsequently, up to 30 dollars per barrel), called "oil shock", in developed countries production costs have risen sharply, which has had a negative impact on production volumes. Prices for gasoline, aviation fuel, electricity, and transport services have increased. Inflation rates increased to 8-14% per annum. Unemployment has increased significantly.

In the second half of the 70s. the recovery from the crisis began, which, however, proceeded rather slowly.

In the early 1980s a new cyclical crisis broke out in the world economy. There was a second oil shock, much larger than the first.

The peculiarity of the economy at that time was stagflation - rising prices with a fall in production and a reduction in employment. The phenomenon of stagflation did not allow the application of Keynesian recipes for economic policy based on the choice between inflation and unemployment.

As a result, in developed countries, GDP growth rates, labor productivity growth rates decreased, and unemployment increased. This gave impetus to the search for new oil fields, at the same time resource-saving technologies began to be developed and applied, and the modernization of production began. Large cars had to be abandoned, and the era of small cars began. A powerful impetus was given to nuclear energy and the development of new ways of generating energy - wind, geothermal, solar stations. Economic crises served as a stimulus for the transition to the second stage of the scientific and technological revolution.

It took about 10 years to overcome the consequences of the oil shock, after which the leading Western countries entered the trajectory of sustainable economic growth.

Rising oil prices led to a temporary redistribution of income in favor of countries located in the Persian Gulf, where half of the world's oil reserves are concentrated. Kuwait, Saudi Arabia, Bahrain, the Emirates took advantage of the current situation and stepped out of feudalism straight into post-industrialism.

In economic policy, the Keynesian school was replaced by the neoliberal - monetarist school, the essence of which is to reduce the degree of state intervention in the economy, reduce the tax burden, maintain stable and moderate growth in the money supply, and free up entrepreneurial initiative.

Authors: Zilbertova T.N., Takhtomysova D.A.

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