My, How Times Have Changed

This post is heavily lifted from here.

There’s a site called The Smirking Chimp recommended by digby (who is, IMHO, totally cool). Check them both from time to time.  The Smirking Chimp has a post about the economic effects of the Reagan Revolution. Following is the gist of their post. It’s handy to have all this information collected in one place. And it confirms what many intelligent people have long thought.

As we all know, the US used to be the largest creditor nation. Now we’re the largest debtor nation. See?

Now, as this was happening, see who, as the phrase goes, made out like bandits…

…and who didn’t

As a result…

So, as a consequence (expressed as total household debt as percentage of GDP), there is this…


Just so we’re clear, here’s the 12-quarter rolling average nominal GDP growth. To be sure, “12-quarter rolling average nominal GDP growth” isn’t a term I fully understand — I’m a computer guy not an economist — but I do recognize this much: the chart doesn’t look good.

And so, ladies and gentlemen, there you have it. Is it possible that there is an intelligent refutation of these facts? Notice the operative word there is “intelligent.” Oh, and throw in “credible,” too. Is there a credible argument that this is wrong?

Somehow, Jimmy Carter’s malaise and cardigan don’t seem quite so bad anymore.

Before I go, do have a look at both digby and The Smoking Chimp. They both are worth your time.