An Economic History

of the HS Class of 1962

Graduation Brought
Difficult times

Social Revolution, Great Society and Abortion
change dynamics of factor allocation.

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

1982 Bretton Woods collapsed ended WW 2 boom .

Monetary policy by Carter appointee Paul Volker
took on inflation by causing severe 1981 recession.

A second 1982 recession when the FED may have tighten too much.

Medicare and Social Security were not tied to inflation
 until 1981 so the elderly were hurt most by stagflation.

1990-91 Dotcom Recession
seemed worse because time had been so good, then 9/11 made many feel unsafe.

Voters ignored debt by accepting Two Bush Tax Cuts

Bush adds Prescription benefits to Medicare with no tax increase to help baby boomers

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.

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.