To Jackie, Deanna, Will, Jan, Randall, Jon and Kevin

In Google, I asked why was the economy slow in the 1970s, to see what people think.

Other people asked...

Let me repeat that one

"The economy of the seventies was terrible. Dubbed with an oil embargo and a mix of other problems led the American nation to an almost depression state. The energy shortage was the start followed by high unemployment and inflation." - US History: Economics of the 1970's

OMG.

1. I never saw the word "dubbed" used that way and I don't think it's right.
2. "a mix of other problems" -- That's not an explanation.
3. "an almost depression state" What?? I was there. Yes, New York City almost went bankrupt. And yes, farmers were ploughing their crop into the soil to reduce their costs. But the main problem that policy was addressing was inflation, and policymakers addressed it by creating recessions, to reduce inflation by slowing the economy.
4. "The energy shortage was the start". No, it wasn't the start.
5. "The energy shortage was the start followed by high unemployment and inflation." No. The rising price of oil was a response to inflation. The high unemployment was a result of the anti-inflation policy.


Looks like the bit I quoted was part of a high school history project. Maybe I was too hard on them. For example, item 2: "a mix of other problems". I've used non-explanations like that, myself. And sometimes you have to look at them a long time (in my case, years) before you can see how empty they are.

So, to Jackie, Deanna, Will, Jan, Randall, Jon and Kevin, I say I'm glad you're interested in economics. Keep at it. Your explanations will improve. Oh, and don't take anybody's word for anything. That'll come back to bite you, every time.

But to their teacher I have to say What the hell! Don't teach people that the problem started with oil. And don't teach people that the economy was slow when, recessions aside, growth in the 1970s was as good as it was in the '60s -- and the recessions were created on purpose by policy as a way to reduce inflation.

And to Google: To the question What were the key economic problems of the 1970s?, you respond with "an oil embargo and a mix of other problems"? -- Really?

The key economic problem then, as now, was our failure to understand the economy.