Quote:
Originally Posted by Undertoad
When I read AP stories about the economy, I always look for the "but".
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And during Nam, the economy also boomed as economic activity was so high. Obviously. Then those bills came due four and ten years later when all those bullets and bombs did not result in profits four and ten years later. The late sixties and early seventies resulted in that recession and stagflation of the late 70s.
The difference in that report and the same one in the 1970s - productivity increases. But back then, economic activity alone was proof of increased productivity. Today, those numbers are measured differently. Today, America does not have the same 'we fear to innovate' attitude that was more prevelant in the 70s.
Just like in the seventies, the world was chock full of American cash. Suddenly the world decided they had too many dollars (as China just said). Inflation meant the nickel became only worth a penny. A looming question remains what will happen to a world flush with American dollars and a country that is again importing significantly more than it exports. A country that still must pay $1trillion for "Mission Accomplished". We also ignored those same clouds during Nixon because the same economic reports during Nam said everything was fine and because that president also was a liar. He even lied about being a crook.