Can someone explain why the American economy was booming from 1980 - 2000. Vast amount of wealth was created in that period of time despite a crash in 1987. You have to go back to 1948 - 1965 to find something similar.
>>66768489
It wasn't "booming", there were numerous recessions.
The eocnomy served the rich, mostly. During this period the middle class stagnated and the poor got poorer.
Government enriched the rich by cutting taxes for the rich, and Government borrowed money to pay for a massive rearmament program.
>>66768489
This infogarphic will explain all you need to know:
>>66768936
America flourished after WW2 because they were the only country without a destroyed infastructure.
>>66769078
The rest of the World could not afford to buy American products.
>>66768489
>Booming
Uh...wut?
The early 80's were a train wreck, as were the late 80's and early 90's.
>Vast amounts of wealth
Yeah, but that was, as the longhairs like to say, concentrated in the top 1%.
You can thank deals like NAFTA. Huge outsourcing and global markets made for massive profits, and with this confidence came retarded over lending.
Asia experienced the hangover first in the 90's, and the U.S. caught up in the 2000's.
But like I said, there was plenty of shitty parts in the early 90's in the U.S. as the middle and working classes began to feel the brunt of their industries being stripped out and the massive influx of cheap foreign labour.
I'll never understand why people don't invest in the stock market.
>>66769318
Also, for all it's booming economy, the 1980's and 1990's were the most violent era's in U.S. post industrial history. Worse than what was seen during Prohibition.
Pretty cool actually. Lots of great photos from the era during the crack boom and the final dissolving of New York pre-Giuliani.
>>66768489
It is really simple, they easy up most of the regulations and taxes set after the great depression (that were put in place to protect the middle class in america, which during the 50's-60's was the strongest middle class in the world).
But after that Politics, Government, regulators all started to work to keep things in favor of the rich guys. There was a boom in the creation of wealth but if you see the average income of the middle class family it didn't increase in the same rates as the other ones, shit mothers had to go out and work and currently you can't have a middle class house without both parents working and sometimes even the oldest son or daughter.
There are a lot of economical explanations of how and why this happen but that will depend on your willingness to read a wall of text.
>>66769545
>read a wall of text.
Come on now. Share the wealth.
>>66769511
>the 1980's and 1990's were the most violent era's in U.S. post industrial history. Worse than what was seen during Prohibition.
That's pretty unarguably the 70's. Sure the 80's were bad, but there was a plateau and decline during that era, and the 90's saw nothing but declines in crime across the board.
Also, the period from 1991-2001 was the longest period of uninterrupted growth in US history. One of the reasons that people remember the 90's so fondly is because of how much wealth was created. The 80's was more of a roller coaster ride, but was also the last period where the US saw 7% growth, so that certainly counts for something.
>>66769762
What about now?
>>66770248
In regards to the economy or crime?
>>66770529
Both really, i thought it was a decent post.
>>66769740
First you have to understand the role of the FED and how it has changed over the years.
Regan didn't just created an environment of low taxes to increase the investment of the people with capital he also helped to deregulated to financial investment. Here you need to notice something that is obvious to some but to most people (even college graduates) can't be seen as obvious. What most people understand for Capital, is the Marx explanation of it, it is the means (knowledge, production, logistic, know how, etc) of creation of goods or services, that is the "standard" definition of capital, in order for something of value to be created something of the "same" value has to be put to work or exchange in order to generate aggregated value to a product. Since the 80's and what Regan helped to deregulate was the creation of financial capital, which it doesn't work quite the same way, while in theory there is an impact in the real economy in the creation of financial capital that isn't always the case, specially not after the deregulation era.
Then deregulation was one side of the coin, the other was protectionism towards those people gambling, this is where Greenspan comes into play. Before Greenspan the economies of the FED were subject of controversy mostly because people were arguing for more interventionism, and Greenspan did that. So what was the result? Years of constant grow without "crashes", Greenspan was seen as a GOD, but the reality is that he only keep encouraging a drunk teenage driver. Greenspan would lower the interest rates in anticipation of a market bubble collapsing, this caused constant grow (or constant inflation of the bubble some may argue) but that attitude of always bailing out the financial firms (little know fact in 1996-7 the US basically Bailed out a giant insurance company, sounds familiar?) with lower interest rates created a market where everyone assume that the FED will come out and clean up afterwards.
>1980s
Bad economic times ended, economy went back to normal, then poor economic policies came to a head in the early 90s.
>1990s
Dotcom boom.
>2000s
Deregulated financial markets and housing market bubble.
>>66770686
I thought they had to bail them out in order to avoid a total collapse.
You guys are all fucking dolts. It's because of America inventing pcs and the internet
>>66770686
the weird thing is
Jimmy Carter was the one who did most of the deregulation
he gets painted as the most liberal president ever but some libertarian economists make the case that it was all of Carters deregulation (of banks, transportation, bussing, airlines, agriculture, etc) that spawned the rosy economy Reagans first term experienced. The federal government grew more than it had grown ever before under Reagan, which probably explains his shitty 2nd term economic climate.
>>66770686
Don't talk about American economics ever again
>>66770904
Someone with an actual Brain
>>66768489
>Vast amount of wealth was created
*vast amount of money. Wealth is a measure of input labor and resources. You can't generate wealth by moving chips around the table on various financial markets hoping nobody will be able to follow your hands, that's just inflating the money bubble. Wealth doesn't increase without everyone working harder.
>>66770529
The economy's this weird two-track thing right now, where some sectors are more or less still in a recession environment and others are booming. The issue is that the areas that are growing are largely highly specialized, and as such do not contribute to the growth of wealth for a majority of Americans. There's a lot more jobs than there were a few years ago, but still not enough to truly employ everyone that needs one. This is especially true as Millennials enter the job market with no experience due to the previous recession preventing them from finding jobs, in a market that asks for years of experience in nearly every job. Long story short, things are still bad, but not as bad as they were, and could either become much better or worse in the short-term.
As for crime, crime's low as fuck in most of the country, unless you're in the rust belt. Excluding that area, cities are the safest that they've been since the 60's. Most crime is now drug-related, and violent crime is practically as low as it could get. Once again though, things are still pretty bad in the rust belt.
>>66771053
This desu. And electronics in general. It made Bill Gates the richest man on Earth and the United States was at the center of it all. I remember my 90s PC's, they were all IBM's, Compaq's, HP's, and all with Windows of course. American. But Apple got big too. Also American. Ipods. MP3 players. Media devices. Mobile phones. Other digital devices. Not to mention the many industries that came with internet, including the porn boom.
>>66770686
This led to the Dot Com bubble. Where years of lowering/increasing of interest rate in order to deflate and inflate new bubbles (because basically the increase of interest rates also have the added side effect of lowering the money supply, decreasing inflation and lowering investment, while the lowering have the opposite effect) created the expectations that the FED should and will always come to the rescue of the bad "investors" that were cataloged "to big to fail" even back in 1997.
But the crash in 1997 of financial firms set up a debate that IF commercials banks were allowed to invest the fall of the security companies (like AIG in 2008) wouldn't happen because the deposit of the people would leverage the investments. So Both Democrats and Republicans pushed the repeal of Glass Steagall, which basically prohibited the use of people's deposits to invest in the financial market. Clinton sign it at the last year of his 2nd term and then everything went loose.
Tradional banks were allowed to invest and they knew that if they fucked up the FED will come out and clean the mess, because that is what they have been doing since Greenspan became chairman.
>>66771136
And you think those things happens in a bubble? Politicians created the outfield for those economic scenarios to unfould, the housing market didn't increase on its own without a government policies of low interest rates to allow investments and all started to come down when the FED started to increase the interest rates back in 2004 to 2007.
>>66771350
Meant to reply to >>66770660
>>66768936
>corporate favoritism = free market
you are a nigger
>>66769259
Yes exactly. So while you were still phasing out rationing, we had a whole fuckload of new consumers (soldiers coming home) and industry with no competition. Want a car? BMW? What's that? Buy a Chevy and go fuck yourself.
That's how it worked.
Oh and you know, the whole Marshal Plan thing where we saved Europe the third time.
>>66771384
I love America so much. Please please please don't let China overtake you.
>>66769464
This, the very reason why i'll inherit wealth.
>>66768489
1980 - 2000 was a prosperous time because we'd more or less rolled out of the Cold War and could finally focus on making money and advancing technology. The future seemed bright.
After 9/11, the prospective future didn't seem so bright anymore. It turned out we still had enemies everywhere, and we still do.
