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The key issue leading to the economic problems faced both in the UK and the USA after 1970 was the reduction of tariffs and the loss of capital controls. With commercial elites in charge of trade policy that policy was directed for their benefit while domestic economic policy was left to suck hind titty. Blame for the resulting problems was deflected onto abandonment of the gold standard after '71.

In truth, the problem was more one of pretending that gold standard rigidities regarding monetary policy still applied. That prevented either country from enjoying the potential benefits of the new free floating FX system with respect to domestic policy. The result was forgoing possibly as much as $100 Trillion of potentially available economic activity since 1971. The fact that national policy was dominated by fossil fuel interests and the military industrial complex were the other major impediments to achieving a better future.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sat Nov 23rd, 2019 at 05:41:40 PM EST
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