Golden Age of Capitalism 1945-1971

http://en.wikipedia.org/wiki/Post%E2%80%93World_War_II_economic_exp...

"The post–World War II economic expansion, also known as the postwar economic boom, the long boom, and the Golden Age of Capitalism, was a period of economic prosperity in the mid-20th century, which occurred mainly inwestern countries following the end of World War II in 1945, and lasted until the early 1970s. It ended with the collapse of the Bretton Woods system in 1971, the1973 oil crisis, and the 1973–1974 stock market crash, which led to the 1970s recession."

Economic recovery from the Great Depression and of WWII, a period in which demand for goods and services exploded, many social changes took place. Women filled the labor gap during the war and many happily returned to homemaking while many others remained in the paid labor force but at unequal pay. Race issues began to explode as returning African- and -Asian American military personnel returned home no longer willing to put up with segregation and Jim Crow laws. 1968 Was a dreadful year with riots, sit-ins, marches and protesters of all varieties joining in resistance to unfair laws, policing, and economic segregation.

By 1971, the "Nixon Shock", the unlinking of money from gold, meant money was printed based on nothing. When USA needed money, it was printed. The consequence is volatility.

The Bretton Woods Agreement, a system of monetary management created the rules for commercial and financial relations among the world's major industrial states. In 1971, the USA unilaterally terminated convertibility of dollar to gold, thus ending the Bretton Woods Agreement. Officially, the $ became "fiat currency", backed by nothing more than a promise to pay.

What is unclear is how one can fulfill a promise if there is nothing to back it up. Due to excess printed dollars, and negative U.S. trade balance, other nations began demanding fulfillment of America's "promise to pay" – that is, the redemption of their dollars for gold.

These and other major shifts in policy brought the end to the Golden Age of Capitalism and economic decline continues at an accelerated rate. 


 

Views: 1295

▶ Reply to This

Replies to This Discussion

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:25am

Permalink Reply by Joan Denoo on May 8, 2012 at 8:06pm

Jedi, EXCELLENT graph. It tells a graphic story of current events. It sure says what is happening better than I could ever do.  

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:26am

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:26am

Permalink Reply by Joan Denoo on May 8, 2012 at 8:16pm

Jedi, I am impressed!

Permalink Reply by Jedi Wanderer on May 9, 2012 at 5:53am

Hah, thanks Joan, I appreciate it. I still have a lot of work ahead of me though!

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:29am

Permalink Reply by Joan Denoo on May 14, 2012 at 1:30am

If one were to make a log of these figures, the 1st through the 99th percentiles would be a tiny, little part of the log if it included the Top 1%. 

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:29am

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:30am

Permalink Reply by Joan Denoo on May 14, 2012 at 1:33am

Oh dear, the log would really be top heavy. 

Permalink Reply by Jedi Wanderer on May 8, 2012 at 9:34am

RSS

© 2013   Atheist Nexus. All rights reserved. Admin: Richard Haynes.

Badges  |  Report an Issue  |  Terms of Service