An Era of Limits

The economic downturn of the early 1970s was the deepest slump since the Great Depression. Every major economic indicator — employment, productivity, growth — turned negative, and by 1973 the economy was in a tailspin. Inflation, brought on in part by military spending in Vietnam, proved especially difficult to control. When a Middle East embargo cut oil supplies in 1973, prices climbed even more. Unemployment remained high and productivity growth low until 1982. Overall, the 1970s represented the worst economic decade of the postwar period — what California governor Jerry Brown called an “era of limits.” In this time of distress, Americans were forced to consider other limits to the growth and expansion that had long been markers of national progress. The environmental movement brought attention to the toxic effects of modern industrial capitalism on the natural world. As the urban crisis grew worse, several major cities verged on bankruptcy. Finally, political limits were reached as well: None of the presidents of the 1970s could reverse the nation’s economic slide, though each spent years trying.