Sign up for my FREE newsletter! - https://www.compoundeddaily.com/ ------ #history #oilcrisis #money Link To Our Other Channel: https://www.youtube.com/c/HowMoneyWorks Written By: Sam Video Created By: Svibe Multimedia Studio Editor: Cardan Media Gatherer: Andrea Rivas Footage Courtesy of: Getty Images Music Provided By: Epidemic Sound 📩 Business Inquiries ➡️ [email protected] - Sources - https://ourworldindata.org/grapher/fossil-fuel-cons-per-capita https://data.worldbank.org/indicator/NY.GDP.PCAP.CD https://www.macrotrends.net/1369/crude-oil-price-history-chart https://fred.stlouisfed.org/series/FPCPITOTLZGUSA https://www.epa.gov/automotive-trends/highlights-automotive-trends-report https://www.eia.gov/dnav/pet/hist/leafhandler.ashx?n=pet&s=mcrfpus2&f=m https://fred.stlouisfed.org/series/WTISPLC https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/UNRATE https://web.archive.org/web/20090624150658/http://dieoff.org/page224.htm https://web.archive.org/web/20091201015034/http://www.time.com/time/magazine/article/0%2C9171%2C946222%2C00.html https://thesoundingline.com/global-per-capita-oil-production-is-lower-than-before-the-shale-boom/ https://ourworldindata.org/grapher/per-capita-oil https://yaleclimateconnections.org/2008/11/jimmy-carters-solar-panels/ ----- In 1979 global oil consumption per capita peaked, and even to this day (almost 50 years later) it has never again fully recovered. This is an especially shocking statistic when you stop to realise that the average person living on earth today is 500% more economically productive than they were back then. In plain english what this means is that since the year 1980, our global economy has become 6 times more fuel efficient, which soouunnds great… but cmon, you already know it wasn’t diligent long term planning or environmental conscientiousness that got us here, it was an economic shock so severe that it literally reshaped the global economy. The oil crisis of the late 70s and early 80s was kicked off by a rapid succession of protests and regime change in Iran which was quickly followed by full scale war across the region. The fighting destroyed infrastructure and slowed oil exports destined for countries in the west that had become very accustomed to having easy energy on demand. Prices more than doubled within just a few months, and as people panicked to get their hands on fuel for their cars, rationing was introduced across the world. But cutting off the circulation of oil also impacted far more than just the morning commute in 1970s landyachts… It was a massive shock to global industry that relied on oil to power their machinery, fuel their trucks and produce their chemicals. All of these costs were eventually passed along to consumers resulting in some of the highest rates of inflation ever seen in advanced economies in modern history, not to mention the most severe economic downturn between the GFC and the great depression. The impacts of what was ultimately a short (and not even particularly major) disruption in global oil supplies would also go on to echo throughout the decades that followed directly impacting things like the savings and loan crisis of the early 1990s not to mention the wider global industrial landscape of the world today. And well yeah… that hinted at perhaps the biggest irony of all in this story… at the height of the greatest oil crisis in history… total oil production was down by less than 5% worldwide, once again proving that learning from history is easy, until there is a profit to be made from ignoring it…
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Shoot, prices are more than $6/gallon for regular where I live
Thanks for metric system convertions
In 1978-'79 I drove a very plain Plymouth Satellite that had been retrofitted with a modified 440cid engine and built transmission. It looked like a "Dad's car" with its plain hubcaps but helped pay my way through the middle years of college at the local informal strip. On a good day commuting I got 6mpg vs my usual 4.This was not wildly out of line for the era. Remember that a base VW in '70 barely got 20mpg in casual driving and giant American V8 sedans were pretty much the norm. It is just wrong to say CAFE mileage regulations didn't contribute to our lower consumption today.
I'd slightly tweak the commentary about Volcker. It wasn't just that he was the rare leader who was willing to make painful decisions regardless of who liked him, it was also that (1) he had the good fortune of _being right_ about what the solution was, and (2) his power didn't derive from his popularity. Yes it's true that few modern leaders are profiles in courage, but that's a side effect of the modern world preferring political systems where only popular things can get done. But the whole reason we're in that state to begin with is because centuries of history have shown us there are actually quite a lot of people eager to do unpopular things _who should never be allowed to have power._
Great job 👏
Two things corporations can always count on are political corruption and consumer stupidity.
I’m sure it will all be fine.
guys i have a quick question. if we are 0:15 "500% more productive than back in the 70s", does that mean we're 500% more fucked?
The spice…must flow…
4:01 genuinely started hurting me when I heard 8 mpg 😭
It is really scary, when you see the latest war in Iran again.
31:25 It's actually a strange thing for non-Americans that they didn't go to war over oil with OPEC. Somehow Vietnam fiasco was so bad there was no temptation to get a victory in the Gulf.
In my humble view Jimmy Carter was one of greatest presidents the USA ever had. A great visionary and a great humanist. Sadly he was caught in the perfect storm of an economic storm in which he was not to blame. Happily his years after the presidency showed to the world how great a person he truly was. Greetings from Denmark
As someone who grew up and went through education in the late 90s and early 2000s, they heavily avoided certain parts of history like this, and the more that I learn about Ronald Reagan the more that I think that seemed like one of those points in history that could’ve really put us ahead as a nation by sticking to nuclear and renewable energy. The amount of progress we could’ve made by now if not for the greed of some of the men at that time…
Great video
This was extremely well done 🌹🌹🌹🌹
“Tells you something about wars we consider worth remembering…” yes we remember wars we are directly apart of more
It's not a single disruption that causes recessions. It's the persistent drop in consumer confidence. When confidence drops, spending drops....
"Tripled the price of oil worldwide" Screen shows $4 --> $12 Looks at current price... $96.79 Suddenly $12 doesn't seem bad at all.
So... why haven't governments simply put price cap on what core infrastructure and minimize the limits of their profits?