Quote from: aminorex on March 13, 2014, 04:11:55 AM

Quote from: arepo on March 13, 2014, 03:59:41 AM

Quote from: arepo on March 13, 2014, 01:15:58 AM

There's another explanation. "On 15 August 1971, the United States unilaterally terminated convertibility of the US$ to gold." http://en.wikipedia.org/wiki/Bretton_Woods_system

can you demonstrate how the Bretton Woods System would have the aforementioned effect on productivity and wages? cum hoc ergo propter hoc is a logical fallacy.

Here's my quick and facile go at it: Stagflation was the direct and immediate result. The mechanism for that should be obvious. The consequences to the livelihoods of the proles likewise.

yes, i can understand how the effects on the purchasing power of the dollar drove the real value of wages down, but does that explain the decoupling of productivity and employment rates, as well?