Political Economy
Following Boomers
for 60 Years
HS Graduation Brings Turmoil Life Improved Retirement Brought a Slow Economy Economy Picks up, as do Meandering Pains
Social Revolution, Great Society
and Abortion
changed political economy for decades.
Vietnam War caused federal debt,
increased inflation.
Foreigners not wanting the cheapened dollars
forced the US off its
partial gold standard.
OPEC limited oil supplies which increased domestic prices.
Business/unions increased price AND wage demands causing inflationary psychology
1972 Bretton Woods collapsed ended the WW 2 boom .
1979 Iranian Revolution induced the 1979 energy crisis, which added to Vietnam Warinflationary pressures, and with the Iran Hostage Crisis, cost Carter his job.
Monetary policy
by Carter appointee Paul Volker, raised interest rates to lower
inflation
causing
a very severe 1981 recession. Despite much criticism, President Ragan
left PV alone.
A second 1982 recession, FED may have tighten too much.
Medicare and Social Security were not tied to inflation until 1981,
so the elderly were hurt much by stagflation.
1984-2005 Great Economic Moderation
1990-91 Dotcom Recession
seemed worse because political
economy had performed well,
then 9/11 made some feel unsafe.
Bush adds Prescription Benefits to Medicare
with no tax increase
to help retiring baby boomers
Voters ignored debt by reelecting Bush after his 2 Tax Cuts.
The 1990s were the longest period
of growth in American history.
The collapse of the speculative
dot-com bubble, a fall in business outlays
and investments,
and the
September 11th attacks,
brought 15 years of
economic growth to an end.
Federal Reserve and US Treasury Managed these Shocks
1)
Speculative real estate practices and home loans malfeasance
led to the collapse of
the
United States housing bubble.
2) Falling housing-related asset
values
contributed to a
global financial crisis, even as oil and food prices soared.
Lehman Brothers, City Bank and AIG crashed and Prompt Government Action
avoided a pending auto industry crisis, mitigated the financial crisis,
began the recovery, but US growth remained slow..
Covid & Biden's Inflation Brought Trump 2.0
Recent Positives
Frank Luntz boast of West Point cadets 8/27/25
Michael Lewis feels the same about the US government employees
he
interviewed for his 2018 book, The Fifth Risk..
My memories of a1973 visit to
a Merchant Marine Academy.
Current Perplexities
My sister and her spouse Gail's unhappiness persisted despite
the success
of their worthwhile causes.
liberal friends after completing a four-year U.S. Air Force
commitment in 1967."
and especially Biden, despite their business success and having
three US
born children in medical school and a fourth learning the business.