Summary: Reading Time: 2 minutesIn our last episode we looked at the period of the great compression. In this episode we will begin look at what ended the great compression.<br> The massive government spending, the acceleration of the American dream, and the thriving levels of economic equality came to an abrupt halt in the 1970s. This was the beginning of what ended the great compression but it is not where many economists and historians look for this answer. The growth of inequality began to surge in the 1980s but the economic exhaustion of the 1970s are what allowed this to take place.<br> There was a cost to pay for the massive spending of the 1950s and 60s. From Vietnam and bulging defense spending to NASA and President Johnson’s extensive social programs – the US government was involved and writing checks everywhere.<br> This could not be sustained though. This fact seems quite obvious but it is missed in most histories of economic inequality in the US. The very solution that many believe will cure economic inequality, government spending, taxation and redistribution of income and wealth, has already proven itself unsuccessful and unsustainable.<br> <br> <br> What Ended the Great Compression<br> The public thirst for government spending had been established and would never be quenched again. The government could no longer keep up with that thirst. As a result, government debt began to grow. As the debt grew, interest rates skyrocketed. That meant a lot for the government. It also meant a slowdown for business growth. Worst of all, it meant a huge hit on the average American family.<br> This is what ended the great compression and the economic growth in the 1970s. This is what we look at in this podcast episode and continuing series on the History of Economic Inequality.<br> The good times come to an abrupt halt in the 1970’s as the excessive postwar spending finally comes due for payment. In this episode we look at the 1970’s in America and the economic downturn that serves as the launching pad for the onset of economic inequality that we are experiencing today.<br> <br> <a href="http://feeds.feedburner.com/~r/theendofhistory/PHVq/~6/1" target="_blank" rel="noopener"></a><br> <a href="https://feedburner.google.com/fb/a/headlineanimator/install?id=nb64uri41haerm5fvtnnavfgjo&w=1" target="_blank" rel="noopener">↑ Grab this Headline Animator</a><br> <br> This is part of my <a href="https://wp.me/p2iDfo-1su">Complete Guide to Understanding Inequality in America</a>. Check it out for more podcast episodes, infographics and articles and on this topic. Check out all of my<a href="http://www.theendofhistory.net/essential-guides-to-gain-a-better-understanding-of-the-world/"> expert topic guides</a> on other topics as well. <br>
