We are approaching 10 years since the financial crisis that launched a new generation in American political history. As was true before, we’ve had the election of a President from the wrong party, one devoted to policies that defy the will of the rising business class, because older voters refused to leave the stage.
This happened because our government allowed deflation to run riot, which sent the benefits of productivity scurrying to the top of the economic pyramid, leaving those who should have been the beneficiaries with nothing. The nature of our crisis is to broaden the base, recycling the wealth of deflation into inflation, generating economic power that can meet the needs of the world’s people.
It so happens that 1978 was also the year I entered the work force. I was in Houston, then a wide-open town growing like gangbusters, much like Silicon Valley today. Houston was driving the economy but not getting what it needed from policymakers, who were more interested in the fate of manufacturing cities like Detroit than in the resource industries.