01/19/2024
“There is no doubt in anyone’s mind, at least on the center-right of the political spectrum, that World War II was, in large part, brought on by the devastating economic policies of the late 1920s and early 1930s.
“The Great Depression in Europe, particularly in Germany, and Japan, led to military governments. They were seeking to expand their influence and their territory at the expense of their neighbors.
“So, in order to avoid, after World War II, the policies that led to these terrible blunders and ultimately world war, the leaders of the free world, particularly of the UK and US, got together in Bretton Woods, NH, starting July 1, 1944, to discuss how to avoid the mistakes that were made in the 1930s, how to bring the world together, how to construct a new international monetary and trading regime.
“The agreement at Bretton Woods, in my opinion, ushered in a period of unprecedented economic growth and opportunity for the Western world. Trade grew for over 40 years at 7% per annum. During the BW era from ’47 to ’67, the war-torn nations of Britain, Germany, France and Japan averaged real GDP growth rates of nearly 6.5%. Inflation was about 3.5%. Unemployment averaged 2%. The United States economy grew an average of near 4%, with only 2.5% average inflation, and unemployment rate of 4.5%. Interest rates were low and stable.”
