Sinister Synergies

Sinister Synergies

From a distance—looking down, say, from a penthouse office in a glass-paned downtown skyscraper—the U.S. economy of the 1990s and early 2000s could feel almost boring. Between Black Monday in 1987 and the Global Financial Crisis twenty years later, growth was steady, markets were mostly stable, and inflation was historically low. The “central problem of depression prevention”—that is, the key aim of economic policymaking since the 1930s—“has been solved,” the Nobel laureate Robert Lucas argued in 2003; dissenters to this rosy view of the dismal science were dismissed as cranks and luddites.

Whoops! Not quite two decades on from the Great Moderation, we find ourselves still stumbling through the social, political, and economic hangover it left behind. Rampant deregulation, accelerating deindustrialization, and an increasingly financialized and computerized economy gave us the GFC, and the vastly unequal economy it left in its wake—channeling gains toward capital, speculators, and a small number of professionals, while leaving workers in the lurch—helped birth the reactionary populism now tearing up global trade.

Top of post: Wall Street; above: The Firm
The Devil’s Advocate
Disclosure
Michael Clayton

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