, Columnist
How the 1970s Changed the U.S. Economy
It’s all about energy costs, which tells us something about the future.
A crisis with long-lasting implications.
Photographer: Joseph W. Neumayer/Archive Photos/Getty Images
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The U.S. economy underwent a fundamental shift in the early 1970s. The cause of that shift is still elusive. But it’s a good bet changes in energy technology probably had something to do with it — with lessons for our economic future.
A new website called “WTF Happened In 1971?” is getting an increasing amount of attention. The site is incredibly simple — just a huge series of charts showing how economic statistics seemed to dramatically change in the early 1970s. For example, real wages rose steadily throughout the 60s, but plummeted after 1973: