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Alternative arguments:
GATTs initiative which encouraged an environment conducive for free trade
also contributed to the Golden Age. This is shown by the fact that the rise of
new protectionism in the form of non-tariff barriers such as the anti-dumping
laws after 1967 spelt problems for the golden age just because GATT was ill
equipped to deal with them, showing the importance of it in contributing to
the Golden Age.
The Cold War environment which predisposed the US to help the recovery of
the war devastated European economies also contributed to the rise of the
Golden Age. It was due to the Cold War climate where communist threat was
imminent that the US was willing to the take up the leadership role in
developing the global economy and the Western European nations became
accepting US economic leadership. As dtente set in after the early 1960s
and with it waned the Soviet threat, the US was no longer so keen to
continue growing the Western European states at great cost to itself. The
Western European countries too began to question the US in its foreign policy
and the economic policies of the US in sustaining it.
The availability of cheap raw materials, namely oil, also caused the Golden
Age of the global economy before 1973. Index price of oil which rose from
146.3 to 752.1 between 1972 to 1974 marked the end of the era of relatively
cheap oil export.