The 70s Don't Look Like This Downturn

Robert Samuelson tried to explain the Fed's failure to recognize that the collapse of the housing bubble, which had been driving the economy in the last cycle, would lead to a serious downturn. He blamed it on complacency that resulted from the relatively stable growth of the prior quarter century. He compared this to the complacency following the 60s boom that led to the 70s inflation.

The comparison is more than a bit off. In the four years since this downturn began, GDP growth has...