Business In Washington - Business Operations & Management Consulting

As I have watched the economy tank and our government react and overreact, I keep having flashbacks to the 1970’s. There was a lot more to the 70’s than bell-bottom jeans, leisure suits, sideburns, double-knits and green shag carpet. It was a terrible economic time.

I finished college in 1975 and took my two degrees into an abysmal job market. I found something, but struggled for several years before finding a good job, one that I stayed with for 15+ years. During the early years of my career, I did what all young professionals do. I tried to succeed at my job, build up some savings, find a life partner, and establish myself personally and professionally.

However, it was a tough time to do this. Inflation ate up every salary increase and limited my savings. I wanted to buy my first house, but the market stayed one step ahead of me in spite of my efforts as housing prices and mortgage rates soared. It took me until the 1980’s to make the leap into the housing market. I managed to obtain a mortgage at the eye-popping rate of 13.5%, and for the time this was a good deal! The resulting PITI house payment took more than half my monthly income.

For some time now, as I have observed our current economic crisis, I see a 1970s redux in the near future. And it isn’t pretty! There is an excellent opinion piece in today’s Wall Street Journal written by Arthur Laffer of “Laffer Curve” fame. He is also one of the authors of the recent book, “The End of Prosperity”. I have read part of it. It is excellent and scary.

I urge my readers to take a look at Mr. Laffer’s article. Press here to read it.

I look forward to hearing your comments!