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https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/ You really just need one disastrous monetary decision to precipitate all the rest of what you men

https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/ You really just need one disastrous monetary decision to precipitate all the rest of what you mention.

0xfaded 5y ago
I see this thrown up regularly and often the poster implies that everyone knows why wage growth separated from economic growth. You've alluded to monetary policy, so in this case I guess inflation. It's a lot more complicated than that. Up until the 1970s unions were incredibly powerful and this was coupled with labour friendly "full-employment" policies. People still argue over exactly what triggered the inflation, but it's clear (at least in my reading) that this was a rare period were labour held sufficient negotiations power to claim it's share of productivity growth. What follows is known as the revolt of capital, where for many reasons, including the inflation, it became impossible for return on capital to keep up with the printing press. Then begins a continuing period of dismantling of labor's power through union busting, policy, and globalization. Fundamentally, labour lost it's negotiating power, and hence it's claim to wage growth. Inflation was merely a driver of change.
- throwaway6734 5y ago
  It's just goldbugs being goldbugs.
- clarkevans 5y ago
  Yes, there is much more besides the change away from the gold standard in '71. For example, starting '73 congress got electronic voting; since then, becoming more accountable to those who observe and influence them. With the 401k introduction in '78, retirement money was directed to the stock market, reshaping main street investment for decades. In '80, software became expressly copyrightable, opening the frontier of intellectual property. It's a history novel, not a single cause or effect. Our legal/business environment is under constant change, every year transforming the civil game that is our economy.
morpheos137 5y ago
Great charts but unfortunately the site is hawking Bitcoin! Newsflash: some faux limited supply monopoly money is not sound currency. In fact there is no place in the world where Bitcoin is used a general currency. None.

https://wtfhappenedin1971.com/ https://wtfhappenedin1971.com/ You really just need one disastrous monetary decision to precipitate all the rest of what you mention.

0xfaded 5y ago

I see this thrown up regularly and often the poster implies that everyone knows why wage growth separated from economic growth. You've alluded to monetary policy, so in this case I guess inflation. It's a lot more complicated than that. Up until the 1970s unions were incredibly powerful and this was coupled with labour friendly "full-employment" policies. People still argue over exactly what triggered the inflation, but it's clear (at least in my reading) that this was a rare period were labour held sufficient negotiations power to claim it's share of productivity growth. What follows is known as the revolt of capital, where for many reasons, including the inflation, it became impossible for return on capital to keep up with the printing press. Then begins a continuing period of dismantling of labor's power through union busting, policy, and globalization. Fundamentally, labour lost it's negotiating power, and hence it's claim to wage growth. Inflation was merely a driver of change.

throwaway6734 5y ago
It's just goldbugs being goldbugs.
clarkevans 5y ago
Yes, there is much more besides the change away from the gold standard in '71. For example, starting '73 congress got electronic voting; since then, becoming more accountable to those who observe and influence them. With the 401k introduction in '78, retirement money was directed to the stock market, reshaping main street investment for decades. In '80, software became expressly copyrightable, opening the frontier of intellectual property. It's a history novel, not a single cause or effect. Our legal/business environment is under constant change, every year transforming the civil game that is our economy.

morpheos137 5y ago

Great charts but unfortunately the site is hawking Bitcoin! Newsflash: some faux limited supply monopoly money is not sound currency. In fact there is no place in the world where Bitcoin is used a general currency. None.