Transcript Early 1980s Recession

Kaulana La’a, Lehua La’a, Harlee Meyers
1
• 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%
Unemployment Rate ‘80-’83
(Monthly Rate)
9
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.
12

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
non-computerized 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 19781985, 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=false&bcs=d&nselm=
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
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&nselm=h&met_y=pcp
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
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