Oil Crisis Unemployment in UK
Oil crisis paved its way during 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC announced an oil impediment in U.S. It lasted until March 1974. Industrialized economies were hugely dependent of crude oil supply, and OPEC was ascendant provider of oil. An electrifying inflation was witnessed during this tenure, and the critics blamed that it was due to the price increase, which is causing the suppression in economic activity. The huge shock in 73 oil price combined with the 73-74 stock market crash, is behold as the first contributing factor since the depression to affect persistently.
The most affected part of industrialized UK economy were the motor industries during 1973. Following the second world war, the European countries applied heavy excise duties to motor fuels, as a result the motor industry faced an economic slowdown.
1973-1974 STOCK MARKET CRASH
The bear market of 73-74 continued from the beginning of January 1973 to December 1974.It affected all the advanced stock markets in international economy, mostly affecting United Kingdom. It is regarded as one of the huge stock market depression in recent times. The crash was due to the collapse of ‘’Nixon Shock” and the United State’s dollar devaluation. It was coupled with the oil crisis in 1973, which happened in October of the same year. There was also a generation of STAGFLATION, rising Inflation and rising unemployment due to the effect of energy crisis of 1973 and 1979.
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