Yellen’s Economy Echoes Arthur Burns More Than Greenspan
Federal Reserve Chair Janet Yellen faces an economy that is starting to look more like Arthur Burns’s in the 1970s than Alan Greenspan’s in the 1990s
Productivity growth is slowing, just as it was when Burns headed the central bank, not accelerating as it did under Greenspan’s watch. Business output per hour excluding agriculture has risen at a 1.4 percent average annual rate since the recession ended in June 2009 as hiring has picked up while economic growth has lagged behind.
That result is in line with the 1.5 percent rate from 1973 to 1977 and less half of the 3 percent pace from 1996 to 2000, Labor Department data show. The post World War II average is 2.3 percent.
Bloomberg By Rich Miller
In the year 1974 it was very easy to see that something was happening in the Nation as drafting boards were becoming rather empty. Unemployment was a minor issue however it started to creep up. 1975 76 77 the finest architects were available for a pittance price. Restaurants though part of a different type of economy were having problems keeping earnings up the mirages had to be very creative.
Unemployment figures 1970, 4.9. 1971, 5.9. 1972, 5.6. 1973, 4.9. 1974, 5.6. 1975, 8.5. 1976, 7.7. 1977, 7.1. 1978, 6.1.
I am not to sure what this person is stating because productivity does include products and because we are so very able to manage cost and production according to consumer demands as well as economic conditions it is to me very difficult to compare periods
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