WTF Happened in 1971? (2019)

Gold standard, Bretton Woods, and the Nixon Shock

• Many commenters link the site’s inflection to the 1971 break with Bretton Woods and the end of dollar–gold convertibility.
• Some argue returning to a gold standard is mechanically simple (fix a rate, redeem dollars for gold) but broadly considered a bad idea by economists and would have drained US gold under trade deficits.
• Others stress the US was already effectively off a “pure” gold standard long before 1971 and had been over‑issuing dollars relative to gold.

Alternative explanations for the 1970s break

• Suggested drivers: 1973 oil crisis, rising energy prices/EROI limits, end of cheap oil, Nixon’s price/wage controls, opening to China, Vietnam War, civil rights and cultural shifts, women entering the workforce, zoning/urban policy, and the broader “neoliberal turn” (Reagan/Thatcher, monetarism, Volcker shock).
• Some narrow it to particular political documents or lobbying/legislative changes in 1970–71 that empowered corporate influence.

Critiques of the WTFHappenedin1971 site

• Many see heavy cherry‑picking and arrows placed on graphs where the visible break is often mid‑70s or around 1980 instead of 1971.
• Multiple links are shared to detailed rebuttals and “spurious correlations” resources; concern that the site nudges readers toward a gold/Bitcoin “sound money” narrative without saying it outright.
• Others say the charts still capture a real multi‑indicator shift in the 70s, even if the monocausal 1971 framing is overstated.

Wages, inequality, and executive pay

• Widening gap between productivity and typical wages is widely acknowledged, though timing and magnitude are debated.
• Proposed causes include collapse of unions, offshoring, political choices on taxes and labor, healthcare costs, and especially the explosion in executive compensation and financialization.
• Some argue CEO pay can’t numerically explain the whole wage–productivity gap but may realign incentives toward capital and away from labor.

Fiat money, credit, and central banking

• One camp blames fiat currency and credit expansion for asset booms, inequality, and “fake” growth; sees Bitcoin/gold as remedies.
• Others counter that crises, inflation, and credit cycles long predate 1971 and gold standards; argue problems lie in credit and political economy, not just fiat.
• Debate over whether central banks should have strong independence versus tighter democratic control.

Meta‑points

• Several note that large systemic shifts rarely have a single cause or year; they see 1960s–80s as a transition era, with 1971 one milestone among many.