WTF Happened in 1971?
In August 1971, Nixon severed the dollar from gold. Nearly every chart measuring American prosperity shows a break point right there.
The Year Everything Changed
The Bretton Woods system tied the dollar to gold at $35/oz. When Nixon killed it, the US gained the ability to print without constraint. Wages flatlined. Inequality soared. Housing became unaffordable. The American Dream began its slow death.
The data speaks for itself.
The Charts
Productivity vs Wages
Productivity continued rising, but wages stopped following
Income Inequality
Top 1% income share exploded after 1971
Housing Affordability
Median home price vs median income diverged
Dollar Purchasing Power
The dollar lost 85% of its value since 1971
Economic Indicators
Multiple data points showing the 1971 inflection
A Generation of Sociopaths
Bruce Cannon Gibney's thesis: The Baby Boomer generation's self-serving policies created these trends.
- 1971: Gold Standard Abandoned -- Enabled unlimited money printing to fund present consumption at future expense
- 1980s: Tax Cuts for Wealthy -- Reagan-era policies shifted burden to working class while enriching top earners
- Deregulation -- Removed guardrails that prevented corporate abuse and financial crises
- Student Debt Explosion -- Made education unaffordable, saddling younger generations with debt Boomers never faced
- Environmental Neglect -- Kicked climate costs down to children and grandchildren
The data suggests Gibney may have a point. Every major policy shift benefited Boomers at the expense of future generations. The charts don't lie.
Why This Matters
- > Millennials and Gen Z can't afford homes
- > Wages feel stagnant despite "economic growth"
- > College is unaffordable
- > Retirement seems impossible
- > Political polarization has increased
Something fundamental changed in 1971.