Herland Report: US Economy Destroyed: In 1945 the United States emerged from a world war with the only intact industrial economy in the world. The British, European, Soviet, and Japanese economies were in ruins.
China and the rest of Asia, Africa, and South America had undeveloped economies, later renamed third world economies. Additionally, the US held most of the world’s gold reserves.
President Franklin D. Roosevelt had used WW II to destroy Britain’s control of international trade and the British pound as the world reserve currency.
The US forced breakup of the British system of trade preferences and the coerced Bretton Woods Agreement gave those roles to the United States, writes Dr. Paul Craig Roberts, chairman of The Institute for Political Economy, former associate editor of the Wall Street Journal, and a well known author of many books. He is also a regular contributor to the Herland Report news site as well as The Herland Report TV interviews on YouTube.
US Economy Destroyed: Four years of war production gave the US a large, disciplined, and skilled work force, and war time consumer shortages provided enormous pent-up consumer demand to drive the postwar economy’s growth.
Jobs were plentiful, and US real income rose strongly in the 1950s and into the 1960s.
But then things started to go wrong.
President Johnson’s program of “guns and butter” ( the Vietnam War and “Great Society” welfare spending) resulted in a proliferation of US dollars that eventually forced President Nixon to close the gold window and terminate the right of foreign central banks to redeem their holdings of US dollars for gold.
Categories: Economics/Class Relations