4 ms·
Nice collection of graphs. But looking closely, you can see that all those graphs conflate multiple trends and not everything happened exactly in 1971 but somet
by RestlessMind 3y ago
Nice collection of graphs. But looking closely, you can see that all those graphs conflate multiple trends and not everything happened exactly in 1971 but sometime in the 70's, or even 80's.
1. Ditching gold standard - this obviously happened in 1971 and had a big impact. But there were other equally important changes.
2. Women entering workforce - this started in late 60's and continued throughout 70's and 80's. You can see "Dual-income working couples" graph, which plateaued in the late 80's
3. Reagan revolution - Reagan changed the discourse both culturally and from a policy perspective. He enacted tax cuts, deregulation, deficit funded growth etc . See the "income growth, from 1917-2012" chart. Income for top 1% earners starts ticking up from mid 80's. Or the "income share of top 1% relative to bottom 90%" starts picking up around 1980. Same with the uptick in "Income inequality in the United states" - starts in 1980.
4. Inflation - oil shock of 1973, with rest of the decade spent fighting it. Interest rates were jacked up to 18% or beyond at some point. Only in the early 80's did things stabilize (Reagan's "morning in America" campaigning). This is also reflected in many graphs with notable changes around mid-80's.