The Right Coast

Editor: Thomas A. Smith
University of San Diego
School of Law

Wednesday, October 10, 2018

The last time US unemployment got this low, the economy got weird - AEI

But what happens next? One should hope events play out today better than after that 1969 milestone. A Federal Reserve history of the 1970s described it as a “turbulent time” for the American economy. And it sure was. The economy slipped into recession after the employment peak, one of four over the next dozen years. Meanwhile, the inflation rate that had begun creeping up in the mid-1960s would become the Great Inflation and hit 15 percent by 1979. From 1966-1982, the stock market fell more than 70 percent in real terms. By decade’s end, America was suffering a “crisis of confidence,” according to President Carter.


| Permalink


But...but...we've been assured the business cycle has been mastered and the Fed has our back. What could go wrong? On the other hand tax cuts, less government regulation and the like may bail us out. Who knows?

Posted by: JMOD46 | Oct 10, 2018 10:05:32 AM

Post a comment