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kristopher

(29,798 posts)
9. My first thought was post war rebuilding also.
Wed Jun 26, 2013, 06:07 AM
Jun 2013

- Europe and Japan were rebuilt from the ground up.
- Japan got a big boost with economic activity supporting US operations in Korea and Vietman.
- China didn't start popping economically until the mid-90s.
- It wasn't the "oil shock" that is reflected, it was the formation of OPEC and the end of colonialism. This resulted in a more realistic assessment of the value of oil and other commodities since the owners were able to exact rents that reflected more of what the market was willing to pay.
- Post war population booms are normal.


Lastly a question: what will that graph look like with a longer time horizon at both ends? For each of the data streams, will 1972 mark the peak of a surge in an otherwise relatively stable trendline, or is it rather a peak to trends that were on a long-term upward trend?

There are many more contributing factors, but that serves as an example and warning about the danger of reductionist thinking.

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