We’re Haunted by the Economy of the 1970s

https://newrepublic.com/article/168050/1970s-stagflation-haunts-politics-today

by hcmacro • 4 years ago

8 3 4 years ago

What I have trouble warping my mind around with the alleged upcoming apocalypse is how much is systemic - contracting export of oil and gas, China slowing productions, war in Europe - and how much is self-inflicted.

After all, economic indicators mostly measure exchange and inter-person behaviour. If you keep telling people it’s going to be terrible, they act like what you say is true. Some of the current crisis seems like a self-fulfilling prophecy.

chewz• 4 years ago

how much is self-inflicted.

Most is self-inflicted. For example EU 15 years ago produced more natural gas then it imported from Russia in 2021. With just a little bit of forward thinking the energy crisis in Europe could have been avoided. Same goes for spending money like drunken sailors by politicians convinced that intrest rates will stay negative forever.

simonblack• 4 years ago

The economy of the 70s wasn't weighed down by a 31 trillion dollar debt-millstone.

Just raising the interest rate by a mere 2% will incur an EXTRA 600 billion dollars of interest per year. A 3% interest rate hike will incur an extra interest bill that's greater than the whole Defense Budget.

The US is headed for 'interesting times'. Pun NOT intentional.

We’re Haunted by the Economy of the 1970s

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