An Economics Question

For John, BLUF:  We have Fiat money since 1971.  That is, our money is a medium of exchange because we agree to give it a value.  Without that, it is useless paper.  Nothing to see here; just move along.

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What Happened in 1971? Edward Snowden and Jack Dorsey Want to Know

Here is the sub-headline:

Something huge happened in 1971.  And both Edward Snowden and Jack Dorsey are asking the same question.

From Foundation for Economic Education, by Mr Jon Miltimore, 27 September 2021.

Here is the lede plus one:

In mid August, Twitter Founder and CEO Jack Dorsey tweeted a strange hashtag: #WTFHappenedin1971.

A few weeks later, Edward Snowden, the CIA subcontractor turned whistleblower who revealed the NSA’s unlawful mass surveillance program, shared a similar post.

It’s unclear if Dorsey and Snowden have similar ideological views, but it’s clear both men are seeking answers to the same question (or prompting others to look themselves): what in the world happened in 1971?

For those who aren’t aware, there is an entire website dedicated to that question: wtfhappenedin1971.com/.

The first thing that becomes apparent is that something happened in 1971. This fact is made clear by a series of charts, all based on government data, that show various odd economic trends began in that year.

Income inequality, for example, began to get much worse.

The linked article has a number of graphs. & This is one of them, texted out by Mr Edward Snowden:

Yes, economic productivity continued to climb, but real compensation for workers not so much.  And, while we sense it, mostly we don't understand it.  I expect we will talk about it this Friday on The Early Show (Facebook, John L McDonough).

in the mean time you can read up on it.  And, to liven up your economic concerns, Congress has until Thursday End of the Day to pass the Federal Budget or some sort of Continuing Resolution (CR).  But, that doesn't end the heavy lifting, because then they have to raise the Debt Ceiling or Debt Limit), to avoid some kind of Federal Government default.

Both of the above will be a test of House Speaker Nancy Pelosi's legerdemain.

Hat tip to the InstaPundit.

Regards  —  Cliff