The paper “ End of Post World War II Economic Boom” is a thoughtful example of the literature review on macro & microeconomics. Economic boom refers to a period characterized by rapid expansion in economic activities, which results in higher Gross Domestic Growth, rising prices of assets, and lowering unemployment. During this period, productivity, sales, wages, and demand in most sectors will increase. After World War II, many nations, the United States included experienced Post – World War II Economic Expansions or what is commonly known as the Long Boom. Although it had started after 1945, it narrowly spanned into the 1950s, with its overall growth lasting well in the 1970s.
However, there are those who believe that the period of other nations’ boom scenarios overlapped into the 1980s or 1990s, for instance, the East Asian economies (Suter 2). The spirited consumer demand in many industrial products led to the boom in its manufacturing corporate. Most countries in Western Europe and East Asia experienced tremendously sustained and high economic growth, with nearly full employment. However, the optimism in it started waning in the 1970s, due to the rise in oil prices.
This major cause of the post-industrial economic and social problems has ensued since then. Nevertheless, the decline in the prices of steel, due to competition from emerging countries led to steel-producing belts such as the Ruhr area in West Germany and the Rust Belt in North America to lack demand, resulting in at the end of the long boom. Therefore, this discussion will explore some theories that explain why the long boom ended. To make the reader understand well the discussion, the paper will begin with events that led to its end, before embarking on the economic explanations of the scenario and ending with contrasts and comparisons between the explanations. Events towards the End of Long BoomAs Suter (2-3) notes, the long boom started waning when Arab states had distanced themselves from the United States, as their weapons of isolating Israel.
As members of the Organization of Petroleum Exporting Countries (OPEC), they begun by cutting oil supplies to America, which was followed by increased prices.
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