Weren't the high inflation years also some of the most progressive, with some of the lowest inequality in recent decades?
Mostly it was the total chaos, riots, and unrest.
They were also immediately followed by Reagan, who wasn’t exactly a shining beacon of progressivism.
But there were a lot of changes during that time, many that could be considered progressive, mixed in with (or perhaps the reason behind?) the chaos. A lot of folks don’t like change, after all.
looks like we come full circle
The national guard doesn't shoot people; that's been democratized to police and private citizens.
The big violent demonstrations are gone. What passes for it these days is a pale shadow.
One "benefit" of the increased inequality is that people making less than the median are too exhausted to demonstrate, much less rebel. Rebellion has always been the act of those who belong, and by excluding more of society there is "peace".
Scare quotes used in case it's not obvious that I don't approve.
Um... didn't the biggest riots in American history just happen two years ago?
How does one measure these things precisely anyway?
Last 2 years have been nothing, except for the ‘implications for democracy’ anyway.
Pick any metric - deaths, injuries, property damage, etc.
Reagan benefited from Volker, and Carter chose Volker knowing that it would probably cost him re-election.
Reagan then squandered the benefit, but is now worshipped as some sort of prelapsarian god. Let's hope the US can slough off that nonsense soon.
Carter had no idea how economics works. The prosperity of the 80's was great.
Sure, the “prosperity of the 80's was great” for me — I was getting FAANG scale salary as a new grad to do AI development. But plenty of my friends were on the losing side of that divide (think, “breaking away”) and it wasn’t great for them, and never became great.
> Reagan switched to a deficit-based fiscalized economy,
That was caused by the Democrat-controlled Congress. Reagan tried to get a balanced budget, and Congress stymied him every time.
> hollowed out manufacturing, and channeled cash upwards towards the wealthy.
That's just propaganda.
> “breaking away”
is a fictional movie. Please use factual references.
is a fictional movie. Please use factual references.
I'm thinking of my friends who didn't go to university, or got their GED at 16, and have struggled as their factory jobs went away.
Reagan's two terms saw explosive growth in the computer and software industry.
If you're suggesting that Reagan should have tried protectionism, I suggest it is about as effective as the sanctions put on Russia & Iran to boost their economies.
Total nonsense. Source: I lived through the 70s.
Or an impressive series of riots? [https://en.wikipedia.org/wiki/List_of_riots#1970s]
Not to mention that whole Nixon thing?[https://en.wikipedia.org/wiki/Watergate_scandal]
It was a busy time.
https://www.newyorker.com/news/john-cassidy/pikettys-inequal...
Is this a fact?
I just checked the data from the US Census Bureau [1]. Here is what I see (all numbers inflation-adjusted to 2021 equivalent [2]).
Note: I chose 1994 as the comparison year since that was as far back as the Census data I looked at goes.
1994 median individual income: $44,618
2021 median individual income: $60,008
1994 mean individual income: $58,005
2021 mean individual income: $83,039
[1] Source: https://www.census.gov/data/tables/time-series/demo/income-p... . I used the 'Worked Full-Time, Year-Round' data since that was available for both 1994 and 2021.
[2] Using the PCE inflation index, which includes energy and food prices: https://fred.stlouisfed.org/series/PCEPI -- I used January 1994 and January 2021 as the reference points.
The 'median' earnings data they cite comes from the BLS 'usual weekly earnings' release.
One can check that release on the bls.gov website. It is labeled "Series Id: LES1252881500". I compared Q1 1994 to Q1 2021, inflation adjusted using the PCE index:
1994: $750
2021: $983
That is an increase of 31.1%. The Census data which I cited previously is annual earnings, not weekly, but it seems relatively consistent with the BLS data, as the Census data showed a growth rate of 34.4%.
In short, both sets of data show relatively consistent income growth over that period.
But, if it were a wining combination I guess we can expect Biden to embrace Inflation, Advocate for it and pronounce that he will redouble efforts to accelerate inflation so that we can all look forward to a better economy and better future with High Inflation.
This is WILD. I can't believe my eyes. Despite the Zimbabwe, Brazil, Turkey, etc., experience, people are making the case FOR inflation? My word.
It defies belief.
But, if most economists are wrong and Biden is right, well, we can look forward to his administration proudly proposing higher inflation.
What interesting times we live in... even inflation has been politically weaponized now.
And I am not.
Most Americans are debtors.
Also, you’re assuming debt has fixed interest rates and asset prices will continue to rise forever. Neither of those things is likely to be true in the medium term (~5 years).
It’s complex. You can’t just look at high inflation in a vacuum without also considering that interest rates will rise (and possibly overcorrect) in response to high inflation.
But Ok, maybe we should follow the example of Brazil, right?
Are you saying: “If inflation is good, Biden will support more of it”?