That 70’s Show

In this TCS article, economist Jerry Bowyer explains how the currently prevailing economic policies remind him of the days of disco balls and bell bottoms.

Ronald Reagan summed up the economic philosophy of the 1970s in one brilliant sentence: "If it moves, tax it; if it keeps moving, regulate it; and if it stops moving, subsidize it." Doesn't that sum up to a T the economic era which we have just entered?

We've taxed American business to the limits of its tolerance, and by so doing driven a vast number of jobs and amount of capital overseas. Downsized corporations have become easy political targets onto which we load highly expensive labor and environmental regulations.

The late 70's saw stagflation, malaise and the most severe misery index of the modern era. The next few years will be a bumpy ride, don't forget your boogie shoes.