Alternative facts

Arguing with Nick Rowe, Scott Sumner said

I had no idea that the late 1970s and early 1980s were “peak investment”, especially given the poor performance of the economy.

The economy performed poorly in the late 1970s and early '80s.


Arguing with Karl Smith, Scott Sumner said

during the 1970s we had normal (3.2%) growth

The economy performed normally in the 1970s.


Arguing with Paul Krugman, Scott Sumner said

I am not denying that growth in US living standards slowed after 1973, rather I am arguing that it would have slowed more had we not reformed our economy.

The economy performed poorly after 1973.

Having it both ways

Scott Sumner:

Another example is that “decade of stagflation;” the 1970s.  The only problem with this commonly held view is that the 1970s were not a decade of stagflation; rather we saw an extraordinary surge in aggregate demand:

NGDP growth averaged:  10.4%
RGDP growth averaged:   3.2%

Growth was normal, and inflation was very high.

 
Scott Sumner:

... the neoliberal reforms after 1980 helped growth...

... growth was slowing almost everywhere in the 1970s and 1980s...

I am not denying that growth in US living standards slowed after 1973...