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WTF Happened in 1971? (2019)

wtfhappenedin1971.com

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Re: WTF Happened in 1971? (2019)

#181
In 1970, the intermodal shipping container became an ISO standard: https://www.freightos.com/the-history-of-the-shipping-contai...

As containers became adopted, shipping ports specializing as container ports came to dominate world trade in terms of shipping volume. These ports were designed to bring the port, rail, and highway together. Crane operators efficiently loaded and unloaded containers. There was a flywheel effect as, more efficient container ports were expanded to accomodate larger container ships, which in turn, had port cities investing in more container port capabilities. Traditional ports died, with shipping consolidating into a much smaller group of container ports. As long as there were sufficient rail and highway access to those ports, goods could still be distributed inland.

Along with the rise of the minicomputer (https://en.wikipedia.org/wiki/Minicomputer) to handle logistics, what we got was a world-wide logistics network that enabled things like just-in-time manufacturing.

The late 1960s and early 1970s was also about the time ecological consciousness became more prominent. I hear from the old permacuturists and ecologists living through those times when large swaths of ecosystems were destroyed to expand things commercially. With healthy natural ecosystems, you could live land-rich, cash-poor. But with the ability to ship things easily and cheaply all throughout the world, local ecosystems became exploited and overharvested (the end-consumers had no personal stake in the ecosystem from which those resources were extracted from).

As productization and monetization of ... everything, including basic essentials of living, is it any surprise that real wages have not risen?

Re: WTF Happened in 1971? (2019)

#182
post #18

Amazed that the site does not call out Nixon completely abandoning the gold standard in 1971. Financial investments thusly did not need to be backed by actual assets anymore, to the point of today where the whole of money is loans against loans against loans.

That theory would explain financial gains going up faster (eg the pie getting bigger, more return to capital), but not a stall in wages for workers. Worker productivity went up, but wages for workers did not. ~1970 is about when the % of workers in unions really started to fall in the US.

[deleted]

Re: WTF Happened in 1971? (2019)

#184

The author obviously wants you to believe that it was the abandonment of the gold standard, but there are several other theories that have more credence with mainstream economists. The early 70's was the start of a horrible period of stagflation: stagnation coupled with inflation. Some do blame the loss of the gold standard, but the leading theory is the OPEC oil crisis. Others blame market regulations, the EPA was p…

> And energy is a massive component in the price of almost everything we consume.

Is it really? What would be different if energy was much cheaper? Would we have more advanced rockets or robots or phones? Better CPUs? More and cheaper housing built in dense cities? Cheaper education or medicine? More job security? Even more food?

I realize that energy is an important input into some industrial processes, but I don't really think we're constrained by it (or by manufacturing in general) right now...

Re: WTF Happened in 1971? (2019)

#186

The author obviously wants you to believe that it was the abandonment of the gold standard, but there are several other theories that have more credence with mainstream economists. The early 70's was the start of a horrible period of stagflation: stagnation coupled with inflation. Some do blame the loss of the gold standard, but the leading theory is the OPEC oil crisis. Others blame market regulations, the EPA was p…

> oil crisis

If the basic stuff that runs the world (energy and chemical feed stock) doubles in price two separate times in the space of 7 years, you just might expect tough times.

Interest rates lower than inflation, gold and silver not keeping pace with inflation either, general economic stagnation.

Not a good time, no it wasn't.

Re: WTF Happened in 1971? (2019)

#187

The author obviously wants you to believe that it was the abandonment of the gold standard, but there are several other theories that have more credence with mainstream economists. The early 70's was the start of a horrible period of stagflation: stagnation coupled with inflation. Some do blame the loss of the gold standard, but the leading theory is the OPEC oil crisis. Others blame market regulations, the EPA was p…

I find the great decoupling fascinating and I don't think it gets enough study. There are a couple other things that I think contributed: The massive increase of women joining the labor market in the US just after 1970 largely as a consequence of the widespread adoption of oral contraceptives in the young population. [1] The People's Republic Of China was formally admitted to the UN in 1971, and following that in 197…

Until Deng's reforms in the 1980s, China remained economically irrelevant.

Re: WTF Happened in 1971? (2019)

#190

The author obviously wants you to believe that it was the abandonment of the gold standard, but there are several other theories that have more credence with mainstream economists. The early 70's was the start of a horrible period of stagflation: stagnation coupled with inflation. Some do blame the loss of the gold standard, but the leading theory is the OPEC oil crisis. Others blame market regulations, the EPA was p…

choosing oil as the standard - for a good reference watch the formula, by no other no-bullshit-taker than McMarlon brando.
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