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And, in the USA, things started going to Hell in the '70s, culminating in Reagan's election in '80. Then it was tax cuts for the rich, approved by yuppies convinced they would soon be rich. Then followed cuts on social expenditures, like colleges and Universities and public schools. In LA and elsewhere there was opposition to busing. That fed into the conservative uprising. Prop 13 in California killed school bonds and state spending on even school maintenance until Latinos gained dominance in the electorate and passed Prop B in the second half o the '90s.

The Federal Government cut Pell Grants for colleges and universities, which had enabled students from poor and working class families to pay tuition and books while living at home. The state was forced to reduce spending on both the University of California and the California State University systems. A lot of the cuts were offset by higher tuition. In the '60s tuition was low. In the '90s we watched tuition double in four years in the Cal State System. Going to college four quarters cost close to $4000/year by the mid '90s for a resident of CA. Today, a student living at home with living expenses and two meals a day at home paid by parents will cost over $11,000 per year.

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

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed May 12th, 2021 at 03:48:03 AM EST
In the sixties @SLU paid my way nearly $1k per year ... books added quite some expenses ... odd jobs in the summer ... White Castle burger @ 10 cents ... McDonald's just reached 300m burgers sold ... National Politics a mess ... space race to the moon ... McDonnell made a difference ... IMO costs of Vietnam War and Space Race plus collapse of Bretton Woods cause The Great Inflation 1965-1982.
by Oui on Wed May 12th, 2021 at 05:26:12 PM EST
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LBJ insisted on 'guns and butter' and refused a tax hike. The heavy spending on the Vietnam War was a factor. Project Apollo was almost entirely done with US manufacturing and materials sourcing, but it contributed to making the economy boom. US output needed more currency than there was available gold. Robert Mundell advocated devaluing the dollar vs gold, perhaps set the peg at $45/oz of gold, but he never got the chance to make that case to Nixon. We needed to increase taxes, especially on the rich but we didn't. Going off gold was probably inevitable, given that the $US was becoming the de facto international reserve currency. The downside of having the world reserve currency is the subject of the Triffin Dilemma.  

Going off gold didn't CAUSE the ensuing inflation, but it did ALLOW it. There were other responses to the oil shocks, but we didn't seriously pursue them. Instead we cheered when Volker killed the economy with 20% interest rates. But the real trick is to bring inflation under control without killing the economy.

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

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu May 13th, 2021 at 12:13:24 AM EST
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