Economically, 2011 - 2020 could be much worse than the '70s

Larry Elliott in the Guardian: 


"In the annals of British postwar history, the 1970s have always had a special place as the awful decade, a time of economic stagnation, industrial unrest and a squeeze on real incomes. It was the decade the postwar boom ended, and the arrival of a hit squad from the International Monetary Fund symbolised that the party was well and truly over.

The analysis on Wednesday of George Osborne's autumn statement by the Institute for Fiscal Studies (IFS) suggested it will soon be time to rewrite the record books, because what Britain is living through now is worse than the decade that gave us the three-day week and winter of discontent".

Read more here...

The museum of macroeconomic anxiety

In honour of our readers from the hedge fund world, we offer some resources for exploring the economic landscape of the 1970s in relation to present day dilemmas. Commentary to follow.

1. Inflation - both in labour costs and in raw materials

2. Protectionism

3. Energy crisis

4. Environmentalism

5. Consumerism

6. Automation and new technology restructuring the workplace

7. Globalisation

8. Stagflation

For a vivid saccount of the atmosphere on Wall Street of the time, pre Gordon Gekko, we recommend The Money Game by 'Adam Smith' - thanks to the macro trader for the tip.

The economic story of 2007

Interesting blog post here:

"The economic story of 2007 isn't Facebook being worth $15bn, its not the subprime mess and the resulting credit crunch, its not the fact that the US economy seems eerily similar to where we were in 1975."