The economic conditions of the 1970’s was a dramatic change from the times when the American economy was the most powerful in the world. Due to the rise of foreign competition and the decreasing demand for American goods, America's industrial sector became much weaker in the early 1970’s. The united states had huge expenses during a time of declining tax receipts. This forced the united states to borrow large amounts of money to balance the budget. This loan caused inflation. And president Nixon had no idea how to fix this problem. He had made it difficult to borrow money in hopes to lower the investment amount and keep dollars spare. This plan led to economic recession because it constricted the economy even more. To punish the united