The Bad Economics of wtfhappenedin1971

The website wtfhappenedin1971.com is the perfect example of the bullshit asymmetry principle.

It tries to convince you that end of Bretton Woods system broke society.

In 1971 , the US dollar stopped being convertible to gold.

This meant the dollar was now a true floating currency.

The divorce rate increase since 1960 is related to the no-fault divorce laws.

Terry Fitzgerald’s paper “where has all the income gone?” shows that the divergence in household compensation growth can be explained in large part by measurement issues.

A lot of charts on wth1971 are based in misunderstanding the evolution of the labor market since 1980 .

The gold standard has nothing to do with any of this.

If there’s a housing shortage, housing prices will follow the maximum price one can afford.

Housing price is also tied to the interest rate.