April 29, 2011

That Glowing '50s Economy

A National Review columnist, not surprisingly, differs with liberal Paul Krugman on the reasons the economy was great during the '50s and early '60s:
My motivation in writing about political economy is, in some ways, much like Krugman’s. But rather than seeing that moment as primarily the product of policies like unionization, entitlements and high taxes, as is Krugman’s view, I believe that it was primarily the product of circumstance. We had just won a global war, and had limited competition; we had a huge wave of immigration, followed by a multi-decade pause; oil was incredibly cheap; a backlog of technical developments had yet to be exploited and scaled up, and so forth. We can’t go back there, at least not exactly.

1 comment:

Doofus said...

"Taciturnitas stulto homini pro sapientia est."

Good advice and,though I approve it, I shall comment anyway.

Surely both Krugman and the NR are correct. If we had had to depend on the goodwill of Big Business to raise their workers to middle class incomes, the glowing '50s economy would not have happened.