The 1973–1975 recession or 1970s recession was a period of economic stagnation in much of the Western world during the 1970s, putting an end to the overall post–World War II economic expansion. It differed from many previous recessions by involving stagflation, in which high unemployment and high inflation existed simultaneously.
In the parlance of recession shapes, the Recession of 1973–75 in the United States could be considered a U-shaped recession, because of its prolonged period of weak growth and contraction. Percent change from preceding period in real gross domestic product (annualized; seasonally adjusted); Average GDP growth 1947–2009 Source: Bureau of Economic Analysis
Post–World War II economic expansion
The post–World War II economic expansion, also known as the postwar economic boom or the Golden Age of Capitalism, was a broad period of worldwide economic expansion beginning with the aftermath of World War II and ending with the 1973–1975 recession. The United States, the Soviet Union and Western European and East Asian countries in particular experienced unusually high and sustained growth, together with full employment.
In the United States and several other nations, the post–World War II boom led to major suburban development and urban sprawl, aided by increasing automobile ownership and cheap oil, as shown in this suburban development in Colorado Springs, Colorado in March 2008.
Allied war bonds matured during these years, transferring cash from governments to private households.
Many Western governments funded large infrastructure projects during this period. Here the redevelopment of Norrmalm and the Stockholm Metro, Sweden.
Poster for the Marshall Plan
