By the late 190s and early 1970s, however, the large bureaucratic organization was beginning to show signs of wear and tear. There is no single reason for this deterioration, but several are worth mentioning. First, the 1970s witnessed a global economic crisis.

Second, there was a global energy crisis precipitated by the West’s increased reliance on Middle East oil supplies—a supply that was unpredictable because of political instability in that region of the world. Third, during this time many nations saw a great deal of industrial unrest. Fourth, and related, political unrest increased in the 1960s, much of it directed at the government and large corporations.

In short, by the 1970s, capitalism faced a serious challenge to its legitimacy, largely due to the fact that it faced a crisis of capital accumulation. In other words, capitalism wasn’t doing what it was supposed to do—create wealth (i.e., capital) and happiness.