Transcript Early 1980s Recession

Kaulana La’a, Lehua La’a, Harlee Meyers
• Inflation was still on the rise after the 1973-1975
recession.
 During this time the economy suffered from stagnation
(high unemployment and high inflation)
• The Federal Reserve attempted to resolve the
recession by issuing a contractionary monetary
policy
• Developed to lower the money supply in the economy, which
resulted in lower prices and lower inflation rates
•This policy helped to lower inflation, but it raised the
unemployment rate due to the banks and other similar
businesses that were suffering from a lack of money in the
system.

The recession had the biggest impact on
financial institutions, such as: banks, and
savings/loans associations.
During Spring of 1983, 30 states had double digit
unemployment rates.
Male vs Female Unemployment Rate
Year
Male Unemployment Rate
Female unemployment rate
1980 7.6%
7.6%
1981 7.3%
7.8%
1982 9.8%
9.2%
1983 10.1%
9.9%
Average: 8.7%
8.63%
Now
And
Then

After the inflation was lowered due to the
Contractionary Monetary Policy, the Federal
Reserve also lowered interest rates. This
caused the economy to be slowly revived,
although unemployment remained relatively
high for the next few years.

In 1980, I was twenty one years old living with
my fiance. I had moved out of the house at
seventeen to become an independent adult and
finish high school, therefore I already had
previous experience in being fiscally responsible.
In 1980 I had joined the largest noncomputerized air travel service in the world,
Royal Hawaiian Airways, as a personal service
agent. During this time, a monumental
movement was changing the way we travel the
airways today: the Airline Deregulation Act (also
known as the acronym ADA).

Since 1937, the Civil Aeronautic Board (also
known as the acronym CAB) had controlled the
pricing of commercial air travel. The CAB
regulations had limited routes, security, and even
price. This is where the Airline Deregulation Act
stepped in. From 1978-1985, the ADA liberated
the commercial airlines industry: placing power
to name their own price on tickets and create
new routes. The airways boomed in economic
power, with prices lowering and air travel gaining
new heights (pun intended).

As I gained more job experience at Royal
Hawaiian Airways, I realized I needed more
money. At 1980, the inflation was incredibly
high, as was interest rates on banking loans. The
idea of a new home or wedding on a beach
seemed like a far away place with interest rates
up to 14% in 1980; so we waited a few years until
the loans were lower and unemployment seemed
higher. I eventually did get that Lanikai Beach
wedding I wished for since I was 12 in 1981, and
bought my very first house a couple years later.

In 2011, my youngest daughters are seniors
in high school, my wedding vows were
renewed last June; and my home has been
paid off. 1980-1983 was a time of great
change for me and I am glad that I was able
to survive it.


http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_mktp_kd_zg#ctype=l&strail=fals
e&bcs=d&nselm=h&met_y=ny_gdp_mktp_kd_zg&scale_y=lin&ind_y=false&rdim=country&idim=country:USA&ifdim=country&tstart=343216800000&tend
=469447200000&hl=en&dl=en
http://www.google.com/publicdata/explore?ds=k3s92bru78li6_&ctype=l&strail=false&bcs=d&nselm=h&met_y=pcpipch#ctype=l&strail=false&bcs=d&ns
elm=h&met_y=pcpipch&scale_y=lin&ind_y=false&rdim=country_group&idim=country:US&ifdim=country_group:parent:&tstart=343216800000&tend=50
0983200000&hl=en&dl=en

http://www.onlineschooling.net/history-of-recessions

http://247wallst.com/2010/09/09/the-13-worst-recessions-depressions-and-panics-in-american-history/3/

http://www.tnr.com/article/politics/the-case-deficit-spending

http://www.applet-magic.com/rec1980.htm

http://scottgrannis.blogspot.com/2009/09/early-1980s-recession-was-much-worse.html

http://withfriendship.com/user/neeraj/early-1980s-recession.php