Further comments on globalization not working; let's fix it, not abolish it.

Economics Without The B.S.**: 

[**  Double entendre intended.]

Do you think these resulted from changes to economic policy from the 1960s, to combating the inflationary ’70s, the disruption which follows with the delinking of the dollar from gold and the currency wars between the $, DM, Yen; Washington Consensus of late ’80s, Globalization taking hold by mid-’90s, and the many financial crises which follow?

 

When the Index started in 1947 they all had the same reading -- 4.6.  Twenty years later, in 1966, with an economy at peak performance:

    >  maximum output, maximum employment, maximum purchasing power;

        With over 90% industrial capacity

            * Over 100% in the auto industry, that’s counting working

                 overtime

            * When the auto industry was around 7% of GDP (more than

                 twice what it is today)

         And industrial capacity almost doubling during the decade

         The unemployment rate was around 3.5% by the end of the

             decade, with the long-term unemployment rate (those

             unemployed for over six months) at just below 5%; meaning

             that structural unemployment – those not suited for the jobs

             available – were just about non-existent. [The long-term

             unemployment rate in the 1980s/1990s floated between 10%

             and 15% in non-recessionary years; and was between 15% to

             20% in the past 25 years during non-recessionary years.]

Twenty years after that, in 1987 the Index reads:

Household Wealth – 7.5

Nominal GDP – 7.6

Real GDP – 6.0

CPI/Inflation – 6.2

Twenty years after that, in 2007, with twenty years of the “Great Moderation”, the Index reads:

Household Wealth – 8.9

Nominal GDP – 8.7

Real GDP – 6.6

CPI/Inflation – 6.8

So here we are: