Either oil crisis or US getting rid of gold standard.

People can point to a number of economic factors but the end-point is simple greed. This curve doesn't exist in other industrialized economies, at least not to this extent. American leaders hate the common people more than the Ancien Regime hated Frenchmen.

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>>17981287
>>17981317
>>17981322
OP chart is incorrect, in short it doesn't take into account bennies and government spending

>>17981338
Ah right! I forgot to cash my $65,000 benefits check this year. I'm so glad my employer gives me entirely free healthcare, too.

>>17981317
Yep, Nixon got off the gold standard because spoiler, the government didn't have any gold anymore but was lying about it.

>>17981317
nixon formally ending the gold standard (it had been effectively ended by FDR but goldbugs rarely bring this up anymore) was downstream of the oil shocks, which didn't cause any crisis but revealed the weakness in the postwar system
postwar americans could get paid a much better wage than their descendants because american workers were essentially the only industrial workers for 25 years. european workers could get good pay because the US was effectively paying those workers itself using financial trickery. the reason the gold standard was formally abandoned is because iirc france wanted to exchange its dollars for the american gold it was legally entitled to because they were sick of the funny money scheme, but the US correctly understood this would lead to every euro country doing the same and the US simply did not have enough gold to redeem every dollar.
back to why wages and productivity decoupled, the global south was either colonies or neocolonies for the entire period, and europe/japan were bombed out ruins that had to be rebuilt. that process had mostly finished by the 70s which is exactly when you see shit hit the fan. rate of profit had declined too far for the system to keep going as it had, and something had to give. either profits would be lowered or wages would be, and because the western world is a dictatorship of the bourgeoisie, you can guess what got cut.

>>17981355
>but the US correctly understood this would lead to every euro country doing the same and the US simply did not have enough gold to redeem every dollar.
In other words, the US government was fucking lying about how much gold they had, nice spin though.

>>17981287
Similar to this
>This association with the Duke of Orleans would ensure Law's place in history. Not only would Law advance the use of paper money, the French word millionaire would come into use as a result of his most famous scheme — the Mississippi Company.

>In 1716 Law convinced the French government to let him open a bank, the Bank Generale, that could issue paper money, or bank notes. The paper notes would be supported by the bank's assets of gold and silver and would circulate as a medium of exchange. Paper money was a new concept for the French; money to them was silver and gold. Law believed that paper notes would increase the money in circulation, which, in turn, would increase commerce. These conditions would help revitalize and rehabilitate the finances of the French government.

>>17981378
I think that guy elaborated on the point you were making. No need to have a meltdown.

>>17981381
Kek ok fair enough, just wanted to make it really clear that the US government deliberately lied about how much gold they had to the American people and the world.

>>17981378
>>17981486
bro I called it a funny money scheme, I clearly do not think what the US was doing was on the up and up
but this is a history board so I at least tried to have some semblance of professionalism and impartiality

>>17981287
a switch to a service economy where only training higher-order skills in academia could ensure you get distributed some of those profits

>>17981287
May 5 – The US dollar floods the European currency markets and threatens especially the Deutsche Mark; the central banks of Austria, Belgium, Netherlands and Switzerland stop the currency trading.

>>17981287
June 10 – The U.S. ends its trade embargo of China.

>>17981287
August 15 – President Richard Nixon announces that the United States will no longer convert dollars to gold at a fixed value, effectively ending the Bretton Woods system. He also imposes a 90-day freeze on wages, prices and rents.

fair wages are communism

>>17981287
November 15 – Intel releases the world's first commercially available microprocessor, the Intel 4004.

>>17981317
The oil crisis didn’t become major until 1973. The abandoning of the gold standard allowed companies to artificially depress wages with money printing

>>17981287
22.
December 18 - The U.S. dollar is devalued for the second time in history.

>>17981287
Crude oil production peaks in the continental United States at approximately 4.5 million barrels per day (720,000 m3/d).

>>17981509
Not even that. You need a degree and a professional organizations in bed with private companies to create a certifying body to heavily time gatekeep people out of the profession.

>>17981664
Bretton woods was a scam the entire time, the government was lying about how much gold they had. There was never an actual gold standard.

>>17981498
Fair enough bro i'm biased.

>>17981674
Have you checked the data?

clean air act amendments of 1970 and EPA (created by open marxists)

>>17982000
please connect that to corporate profits skyrocketing and common wages stagnating retard.

>>17981287
jews decided it was in their longterm interest to start fleecing the goyim
only time will tell if it was a sound strategy

>>17981338
>bennies and government spending
fow whom, racially speaking?
do you have a chart?

>>17982000
Aah yes, the notorious marxist Dick Nixon.

>>17982374
socialism is when rich government bureaucrats control everything and the poor are sacrificed to make the rich richer
didn't you take a civics class in high school

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>>17981287
>What happened in 1971?
The Bretton Woods gold standard was abolished.
This led to rising prices, and wages couldn't keep up.

In other words, people worked just as hard, but could buy less.

>>17981351
>the government didn't have any gold anymore
That was caused by the fractional reserve banking system.
It increases the money supply, while the amount of physical banknotes stays the same. And when foreigners received the dollars from their exports, they kept exchanging it for gold, while the Americans didn't bother to do the same with their curreny.
This triggered a gold outflow abroad.

>>17982000
>Marxism is when regulations on car exhaust

>>17982755
>>17982762
hey retard, the US had printed more dollars than its gold reserves could support all the way back in the 50s to fund european recovery
if evil FIAT currencies destroy everything, why was everything so great in the 50s and 60s despite the USD being effectively fiat at that time?

>>17982737
> socialism is when rich government bureaucrats control everything
As opposed to rich private corporate bureaucrats controlling everything?

>>17982770
Because officially they were still on the gold standard, while in the 70s they abandoned it outright.
>if evil FIAT currencies
You sound like a typical leftist midwit who sees the world through the lens of good and bad things, instead of facts and lies.

>>17981287
nixon took us off thee gold standard

>>17981355
>>17981378
which means FDR and the post FDR governments were breaking the law and printing too many dollars

>>17982781
>>17982792
>Because officially they were still on the gold standard
but there was more USD than gold to back it. some portion of US dollars were fiat because they could not be redeemed for gold. if I swear an oath and very solemnly tell you the sky is orange, does that make the sky orange?
despite creating fiat currency and breaking the law, everything was great in the 50s and 60s. fiat dollars existed before nixon ended the gold standard and they existed after, so fiat dollars existing cannot explain why things go so bad in the early 70s

>>17981653
>He also imposes a 90-day freeze on wages
fucking gay

>>17982702
>>17982737
this, but unironically

>>17982765
this, but unironically

>>17982770
>if evil FIAT currencies destroy everything, why was everything so great in the 50s and 60s despite the USD being effectively fiat at that time?
because we just got done bombing the shit out of every factory on the planet and then offered those countries cheap credit to buy our shit

>>17982804
fiat currency is evil and it cause wages to decouple with production in 1971

>>17982812
you're slowly starting to get the entire point of my first post, little goldbug lolbert
the reason things went to shit in the early 70s is because the US had gotten used to free money and when international competition came back the US happily sacrificed its working population to keep the money flowing to the owners

>>17982815
you on the other hand are retarded. congrats on getting a few (You)s

>>17982815
Fiat currency in small amounts is necessary, but the U.S. government literally exports its unsustainable debt obligations as a matter of policy. It’s why “taxes” can be cut and cut and cut again and public services still get funded through endless debt and borrowing

>>17982817
you are a retarded cocksucker, both posts are me. fiat currency is bad and it's what caused wages to uncouple with productivity, retard
>>17982822
no federal income tax cut has ever resulted in a long term drop in federal revenue in the history of the US

>>17982831
Yeah, because federal revenue is made up for in bonds and funny money schemes retard. The idea that “achsually cutting taxes means I don’t have to cut spending!” is and will always be fundamentally retarded. You and your kids pay for it down the road always and forever

>>17982831
the USD was fiat when wages and productivity were tightly coupled
how exactly does the USD being fiat magically change from tightly coupling wages and productivity to causing them to decouple in 1971?
>no federal income tax cut has ever resulted in a long term drop in federal revenue in the history of the US
ah you're this troll. how long until we see the samefagging arguments between your sock puppets

>>17982834
no, you fucking retard, cutting taxes results in higher tax revenue because income taxes are too high and spending isn't related to revenue
>>17982835
>the USD was fiat when wages and productivity were tightly coupled
it wasn't. it became fiat in 1971, retard
>ah you're this troll.
show me one time in US history where a federal income tax cut resulted in a long term drop in federal revenue, because it never happened

>>17982845
>Cutting taxes results in higher revenue
Ah, you’re one of those retards who think you can just magically pay for more things with less cash flow coming in lmao.

>>17982849
show me one time in US history where a federal income tax cut resulted in a long term drop in federal revenue, because it has never happened, retard

>>17982845
>it wasn't. it became fiat in 1971, retard
it couldn't have become fiat in 1971, there was already more money than gold to back it by then. the entire reason nixon ended convertibility was to prevent a gold run on the treasury which would be impossible if all the dollars that existed in 1971 were backed by gold
unless you're saying the us had a steadily decreasing money supply (remember, you said fractional reserve banking had been slowly sending US gold abroad and since we were on a gold standard that would require shrinking the money supply in the US) but then suddenly printed a monstrous amount of money in sufficient quantity to cause the economic issues of the 70s
I'd love to see your proof the inflation rate spiked as hard as it would've had to if that's the case

>>17982856
Are you slow?
Every single time taxes are cut and spending stays the same the debt explodes and YOU pay for it overtime in interest payments on said debt. It’s literally an accounting trick you believe is an economic law like a rube.

>>17982863
that's when nixon took us off the gold standard, you gay fucking retard. that's when productivity got decoupled from wages. it's due to fiat currency. only israelis defend fiat currency, you yuro tranny

>>17982870
I'm white, you retarded tranny
>>17982864
show me a single time where a us federal income tax cut resulted in a long term drop in US federal revenue, because it has literally never happened, tranny

>>17982887
I am white, you yuro tranny. keep crying while wearing women's clothing

>>17982914
my skin is white as snow. you are a yuro and a tranny. yuros and indians are the same in every way, shape and form

>>17981287
How does productivity soar with stagnant wages? Is this some kind of sweatshop?

>>17982924
I don't have a drop of indian blood in me, keep crying, tranny boi

>>17982804
The current situation is a good analogy for that time.
The US is basically a bankrupt country, there's no way to pay off that debt, and servicing it itself becomes harder and harder.

And yet, the current rates are only around 4%.

How is that possible? Because officially, nothing's been declared yet, the US still rides on its superpower aura, despite the fact that it could go bust in just a few years.

Same in the 50s - the "vibe" was very good, everybody believed in the system, so there was no reason for worry.

But once Bretton Woods was officially abandoned, it eroded the trust in the American currency.

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>>17983045
Or maybe you're just economically illiterate

You're not meant to look at the debt in a vacuum but as a percentage of a countries GDP plus against the value of assets held within a given country. The US maintains a high "credit score" so-to-speak because it has enough resources to pay of its debts if it had to, but that's dumb because it doesn't have to, and the US is not the country with the highest debt relative to its GDP, Japan is anyways

Regardless, it's also dumb to base a currency off of a finite resource which value is unstable as it relies on supply and demand of said resource. Fiat makes more sense since it scales with the size of the economy, and it still allows you to purchase gold and silver as a hedge against inflation anyways.

>>17983064
>Regardless, it's also dumb to base a currency off of a finite resource which value is unstable as it relies on supply and demand of said resource. Fiat makes more sense since it scales with the size of the economy, and it still allows you to purchase gold and silver as a hedge against inflation anyways.
the value of gold is extremely stable historically. Silver fluctuates a lot, but gold is pretty stable. Fiat is shit and only benefits the banker class

>>17983068
It was "stable" historically because it had to be, lest you rapidly devalue your currency as more of it is printed as a fraction of your inherently limited gold reserves, so to prevent this less currency was printed, but this was also a problem because now there's less capital in circulation to maintain your economy, which leads to a loss in revenue and deflation, which is worse than standard inflation as a product of your economy as a whole. But again, if inflation is a bad word for you, you're free to buy and hold onto bullion as a hedge against inflation.

>>17983077
inflation is bad. it only benefits the mega rich banker class, tranny

>>17983080
It's not inherently bad, wages just need to scale with it

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>>17983068
>the value of gold is extremely stable historically.
Bank runs were notoriously common before the gold standard ended, what the fuck are you talking about?

>>17983085
that has nothing to do with the stability of gold, retard. bank runs are semi common now. the only thing that stops them from being super common is the FDIC. there was a run on silicon valley bank a year or 2 ago
>>17983084
it is inherently bad, see everyone being worse off now than they were in the 1980s or 1960s

>>17983092
>see everyone being worse off now than they were in the 1980s or 1960s
It's almost as if that's around the time that the federal minimum wage stopped scaling with inflation

>>17983093
>we need a higher minimum wage
>we also need open borders so a permanent underclass of global southerners can work for less than minimum wage and do crimes

>>17983097
>We don't want open borders for cheap labor in the country
okay so we should raise the federal minimum wage and outsource more labor to third world countries in order to maintain a relatively high purchasing power
>n-no we shouldn't do that either because outsourcing also bad!

>>17983103
outsourcing is bad. we should have a 200 year moratorium on all immigration and any jobs outsourced should have a 100,000% tax and criminal charges

>>17981287
It's fake. That's based on a study that ignored non-cash remuneration and ignored vast swathes of workers.
https://fee.org/articles/dispelling-the-myth-that-wages-have-been-stagnant-for-decades/

>>17983107
The reason we outsource is because working wages in third world countries are lower than working wages in first world countries, which allows for both higher profit margins, but also cheaper products for the average person.
If we lower our working wages to yield cheaper domestic manufacturing, then we just become the third world country we were already outsourcing to
If we raise working wages in order to match the price of our product, then we still become the third world country we were already outsourcing to, since we would then be effectively devaluing our currency anyways.

>>17983080
inflation is advantageous for debtors, since you were able to get value from your loan and then repay it with inflated currency. I don't think you're properly investing your money.

>>17983107
autarkists are mentally ill

>>17983112
>>17983119
it only benefits the mega rich. outsourcing should be illegal. any good or services from countries with worse labor laws than our own need to be tariffed to hell and back
>>17983117
>just get more ROI than the 30% inflation we had under brandon

>>17983064
What a bunch of Keynesian nonsense.
>which value is unstable
Value in what? Paper currencies?
If gold is finite and the supply relatively stable, when its rising in USD, which is the unstable one? Gold, or the paper currency it's priced in?
>Fiat makes more sense since it scales with the size of the economy
That's useless. It doesn't need to scale with the size of the economy - it's the opposite - it's negative, because it creates price inflation, where there could be none with stable money supply.
>and it still allows you to purchase gold and silver as a hedge against inflation anyways
Why go the around route, when the gold itself can be the money used? No inflation there.
>against the value of assets held within a given country
Does the US gov. hold enough assets to pay off even a fraction of its debt? I doubt.
And I don't think they're even authorized to do it.
>but as a percentage of a countries GDP
I think the percentage of gov. revenue going on servicing the debt is much more important, since it paints a picture in real currency flows, rather a theoretical concept (the GDP).

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Perhaps this is in relation to a certain war.

>>17984030
>What a bunch of Keynesian nonsense.
I'm glad you got your economic illiteracy out of the way in the first line of your post so I know not to read the rest of it.

>>17983120
>>just get more ROI than the 30% inflation we had under brandon
only an issue because wealth inequality is so bad. only the rich have the liquid wealth to buy appreciating assets right now. if working class people could buy stock on the scale the rich could, inflation wouldn't really be an issue since their wealth would be increasing faster than inflation due to said assets
inflation was very high, relatively speaking, in the 50s but wealth inequality was very low. working people could buy into appreciating assets and ride that appreciation to beat inflation, and they could do that because their wages were outpacing inflation on their own. greatest gen vets that bought houses made out like bandits because they only had to pay a fraction of the value back to the bank that they borrowed to buy their houses; thanks to inflation they pocketed a good chunk of the mortgages they took out
working people today are spending like 70-80% of their income just on reproduction (housing, food, healthcare, servicing debt) so they're locked out of the asset market and their wages are being artificially suppressed to keep corporate profits high. inflation existing has nothing to do with the problems workers today face
if you insist that inflation is LE BAD, read piketty (I know you won't). he spends a whole chapter in capital in the 21st century talking about how post war euros leveraged inflation to eliminate ww2 debt while also creating the post war booms.

>>17984803
Not that retard you're replying to, but you could buy into fractional stocks, and stock indexes, which, while not a great ROI, can be a guaranteed ROI since number tend to go up

>>17982374
>corporate profits skyrocketing
inflation caused by the destruction of US industry and the dollar by OPEC and "green" marxists

>>17984810
ok that's fair, at least for like 50th-11th percentile workers. 49th and below are well and truly fucked though, you gotta admit that

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>>17984812
>inflation caused by the destruction of US industry
Autarky is bad for multiple reasons and you've been told this multiple times in this thread already but if you want to remain ignorant on how the economy works and just want to call anyone you don't like a Marxist that's your prerogative, but I would at least hope that you leave this thread about a subject you're clearly poorly educated on and let people who know what they're talking about discuss these things instead

>>17984820
*I got percentiles backwards, but you know what I mean. the bottom 50% are fucked, the next 40% can use lesser forms of asset investment to tread water, the top 9% can get ahead, the top 0.9% can go to the moon and the top 0.1% can go to infinity

>>17984824
>what happened in the 70's
>coalition of leftists destroy US industry to reduce the smog in their cities by 10%
>declare war on affordable electricity and vehicles
>OPEC invades israel and France steals tons of US gold
>Nixon forced to decouple the dollar from gold
>all the money OPEC made is sent to third world shitholes where it's embezzled and disappears
>legalized tens of millions of illegals to lower wages while importing more and mroe and more to this day
>the government decouples housing prices from inflation calculations in the 80's to hide the actual inflation
>NO, CORPORATE PROFITS CAN'T JUST BE INFLATION
>literally just the stock market
dumb

Now it's resorting to a greentext tard crashout and it still somehow gets half the shit it says wrong. /pol/ isn't sending their best

>17984842
>France steals tons of US gold
loooooooooooooool
the retard obsessed with the gold standard is claiming france exercising its right under a gold standard to redeem currency for gold is stealing the gold
thanks for making my day

>>17984858
That's a lot of points you've never heard of, better get researching

or you can continue to be an empty headed commie

>>17984862
>That's a lot of points you've never heard of
I have and you're wrong. Why do you retards always assume you've unlocked some deep hidden knowledge that nobody else knows about? You're an idiot, and you're easily manipulated by loaded language and schizographs.

>>17984872
I guarantee you you have no idea what I'm talking about

>>17984875
I absolutely know what you're talking about. You're easily manipulated by loaded language and schizographs. You are not as intelligent or informed as you think you are. Shiny rocks are not a good way to back a nations currency by the way

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>>17984886
you're damage controlling, I do all my own research

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>"I do all my own research"

>>17984894
he reads libertarian and austrian economics blogs and calls it research, like all schizos

>>17984894
>Come to history board
>What happened to negatively affect the economy in the 70's
>*List things*
>NOOOOOOOOOOO YOU CANT ACTUALLY KNOW HISTORY, ITS THE BOURGEOISIE

Watching you braindead high school dropouts and CS majors talk about economics makes my eyes hurt

>>17984916
>>*List things*
it was actually the annunaki coming back from nibiru to tell the molemen to tunnel into fort knox and convert all the gold into unobtanium to power the annunaki's warp drives, and that transmutation process infected nixon with marxist nanobots that made him crash the economy
I did my own research, prove me wrong

>>17984931
They're all distinct real movements that caused real problems with the economy, but socialists don't actually want to solve problems because as soon as they stop and think for 5 minutes their worldview falls apart

>>17984936
>>17984861
your entire "argument" is full of obvious falsehoods, try again

>>17984942
You're just an ignorant retard it's not really my problem but you keep posting claiming you're not

>>17984957
>ur just ignorant
>from the retard quoting fee and anonymous lolbertarian schizo blogs
>>>/pol/

>>17984966
>Individuals having an effect on demand through personal choice confuses me
Damn. Tough luck

>>17981287
Main issue is you cannot longer calculate wealth just by wages alone, for example, it doesnt have into account the internet and assorted digital systems you have virtually for free, compare the 16000 articles lf Encyclopedia Britannica with the millions at Wikipedia.
>but I don't like liberalpedia
Ok, factor 4chan and your chud youtube channels.

>>17981378
>In other words, the US government was fucking lying about how much gold they had
Don't know what the outraged tone is about. It's because a gold standard is retarded and it's unrealistic for a nation to horde that much gold. Nor is it practical to try to accrue or dump huge sums of gold to mimic the booms and busts of the economy and money supply.

When the Gold Standard effectively ended domestically in the USA in 1934 (Britain dumped it even earlier) what happened is that an American could no longer go to the government and demand their dollar's equivalent in gold. In theory there's a peg still, but the reality could be anything and the exchange rate is made up shit. There's no need or point in "lying" here because what's really happening is they're no longer trying to keep an insane amount of physical gold and maintain a realistic market driven exchange rate for everyone in the world that owns a paper dollar. They've ended that without giving people panic attacks by maintaining an illusion the Fort Knox matters.

As far as I'm aware this wasn't 100% true for international banks which led to the aforementioned issues eventually.

>>17984995
Since when did human society care about knowledge

>>17985008
Not knowledge, but something to talk about, particularly now things are increasingly automated and there is a lot of spare time, why are you even here if you don't have the time?

>>17985016
You think things are going to keep automating?

>>17981287
Nixon killed the gold standard. You didn't see THAT on Futurama, huh?

>>17985441
and why'd he do that

>>17984796
So you think Keynes was a good economist?
Serious question.

>>17984803
>only an issue because wealth inequality is so bad. only the rich have the liquid wealth to buy appreciating assets right now.
that's due to inflation
>inflation was very high, relatively speaking, in the 50s
no, it wasn't.
> read piketty
french jewish communist

>>17984810
less than inflation you dickless retard and it still doesn't fix the fact wages haven't gone up with inflation, tranny

>>17984842
good and correct post

>>17984861
france isn't entitled to shit. it's a different government

>>17985007
the gold standard was based and was good for the average person. fiat is only good for jewish bankers and has caused hyper inflation

>>17985479
because he was jewish

>>17981342
That's the compensation the workers demanded to have legislated. Sucks for everyone the workers were retarded and didn't realize it would come out of their paychecks but them's the breaks.

>>17981287
>>17981287
why do brainlets assume that if nothing changed the gray line would follow the green trajectory instead of the green line following the gray trajectory?

>>17986236
you are one gay retard