The Cold War: Economic Crisis

During the Cold War, there were many problems that arose in the world. A major problem, though, was the economic crisis regarding oil. The Prices of Oil skyrocketed, under the OPEC embargo oil prices jumped 400% in one year. With the oil prices going up, the price of everything goes up because that means the price of energy went up. Everything requires energy. The cause of this inflation was an increase in government spending, so the deficit increases. When the government is in debt, they jack up the prices for items. The American manufacturing economy collapsed because the American workers were not producing as much as they were being paid.