ISBN 9781476777702,The End of Normal

The End of Normal



Simon & Schuster

Publication Year 2014

ISBN 9781476777702

ISBN-10 1476777705


Number of Pages 304 Pages
Language (English)


The years since the great crisis of 2008 have seen slow growth, high unemployment, falling home values, chronic deficits, a deepening disaster in Europe and a stale argument between two false solutions, austerity on one side and stimulus on the other.
Both sides and practically all analyses of the crisis so far take for granted that the economic growth from the early 1950s until 2000 interrupted only by the troubled 1970s represented a nor mal performance. From this perspective the crisis was an interruption, caused by bad policy or bad people and full recovery is to be expected if the cause is corrected.
The end of normal challenges this view. Placing the crisis in perspective, Galbraith argues that the 1970s already ended the age of easy growth. The 1980s and 1990s saw only uneven growth, with rising inequality within and between countries. and the 2000s saw the end even of that despite frantic efforts to keep growth going with tax cuts, war spending and financial deregulation. When the crisis finally came, stimulus and automatic stabilization were able to place a floor under economic collapse. But they are not able to bring about a return to high growth and full employment