[dasil003]

> Before about 1975, unemployment was typically under 5%...

Between 1945 and 1975 American enjoyed an unprecendented period post-war prosperity owing to the destruction of the rest of the newly industrialized world. This was not the case before and will never be the case again.

[hoopladler]

I'm not the biggest fan of Keynes, myself. I'm assuming that's what you're referencing - since of course, the rest of the industrialized world also enjoyed unprecedented prosperity.

But for my sakes, I honestly think the idea that blowing stuff up just so you can build them again is a bit more abstract than the question demands. After the war, many nations, the USA included, produced large and comprehensive social programs. This undoubtedly wasn't that great for the economy in general (the US share of global GDP steadilly ticked down for the entire period, putting an end to a century of rapid growth). It was however, undoubtedly great for Americans in general.

Between 1975 and today, until a few years ago, American share of world GDP hasn't gone down all that much, indeed, it's descended less than it did in the period between 1945 and 1975. The USA is richer as a nation than it has been at any point in its history. It's simply unwilling to pay for all the New Deal stuff.

[marcosdumay]

> prosperity owing to the destruction of the rest of the newly industrialized world prosperity owing to the destruction of the rest of the newly industrialized world. I get that you are implying the prosperity came from competitive advantages. But it is hard to believe that the destruction of most of the world did in fact power the 50's and 60's growth.

There are several competing theories, and even taking international competitiveness into account, bankrupting your clients isn't a good way to grow.