The economic downturn in America during the early 1990s was caused by a few important reasons:
Rising Oil Prices: The Gulf War made oil prices go up. This meant that it cost more for people and businesses to buy things.
High Interest Rates: The Federal Reserve wanted to control inflation, so they raised interest rates. This made it more expensive to borrow money, which slowed down economic growth.
Less Spending on Defense: After the Cold War ended, there was less money spent on the military. This led to job losses and less money being invested in certain areas.
All of these factors put together made the economy tough, and it took a while for things to get better.
The economic downturn in America during the early 1990s was caused by a few important reasons:
Rising Oil Prices: The Gulf War made oil prices go up. This meant that it cost more for people and businesses to buy things.
High Interest Rates: The Federal Reserve wanted to control inflation, so they raised interest rates. This made it more expensive to borrow money, which slowed down economic growth.
Less Spending on Defense: After the Cold War ended, there was less money spent on the military. This led to job losses and less money being invested in certain areas.
All of these factors put together made the economy tough, and it took a while for things to get better.