Thanks for sharing.

I am not 100% up to speed on how the GDP was calculated in 1940 vs how it was calculated more recently. I would want to look more into that before I responded. I know for example that unemployment figures have had pretty drastic changes in how they are calculated since about 1960, so it is hard to do an apples to apples comparison over time.

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Disclaimer:
I do not support McCain or Obama, please refrain from making the assumption that because I post something negative about your candidate, that I must be supporting the other. We do have more than 2 people running for president.

Now, I agree that the Fed deserves some credit, but the date 1985 could indicate another cause.

When the Soviet Union began to collapse in the mid '80s, the entire structure of the global economy changed. Walls and barriers to economic exchange well along with the political wall between East and West. In addition, more countries became capitalist countries, global production grew faster than it ever had before. The massively increasing size of the global economy alone could account for the greater amount of economic security, as people from around the world could connect and the traditional dip in the business cycle that we know so well become spread out and absorbed by the shear size of our global economy.

This is just a theory though, thought I'd share.

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"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.

--Murray Rothbard

ron paul would set this nation back a century.

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I would prefer to be set back two centuries, but I'll take what I can get.

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"It is no crime to be ignorant of economics, which is, after all, a specialized discipline and one that most people consider to be a 'dismal science.' But it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.

--Murray Rothbard

Is this fact, or just your closed minded opinion?

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Disclaimer:
I do not support McCain or Obama, please refrain from making the assumption that because I post something negative about your candidate, that I must be supporting the other. We do have more than 2 people running for president.

I don't know that increased capitalism worldwide would reduce volatility. It might improve overall economic output, but I don't see it has having a direct relationship to volatility. Indeed, socialist systems tend to greatly reduce volatility -- though at a steep cost.

I think most economists agree that a big causative factor was Fed chairman Paul Volcker's decision to beat the snot out of inflation.
http://economistsview.typepad.com/ec...xplains_t.html

What accounts for the fact that real growth has been more stable in recent years? We survey the evidence and competing explanations and find support for the view that improved inventory management policies, coupled with financial innovation, adopting an inflation targeting scheme and increased central bank independence have all been associated with more stable real growth.

Note that the link's link (which the above quote is drawn from) addresses the "increased capitalism" idea (i.e., increased trade) and finds weak evidence that increasing trade actually *increases* volatility.

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Man up.

it is a fact and my closed minded opinion. 2 in 1. paul is the #1 choice among white supremacists and impressionable youngsters who dont quite fit in.

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Ok, as long as you realize that its closed minded...and wrong...incredibly wrong.

Im not opposed to your right to think that, all I can do is point out how ludicris those comments are.

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Disclaimer:
I do not support McCain or Obama, please refrain from making the assumption that because I post something negative about your candidate, that I must be supporting the other. We do have more than 2 people running for president.