In the late 1970s, after a decade of economic stagnation, western economies, accompanied by China, began the first steps towards the abandonment of the Bretton Woods systemBretton Woods System Full Description:The Bretton Woods System was designed to prevent the competitive currency devaluations and trade protectionism that contributed to previous global conflicts. It tied global currencies to the US Dollar, which was in turn pegged to gold. While the UN managed politics, Bretton Woods institutions managed the global economy, promoting free trade and capital movement. Critical Perspective:Crucially, this system institutionalized American economic hegemony. By locating these institutions in Washington and giving the US veto power over their decisions, the system ensured that global development would follow a capitalist, Western-centric model. Critics argue it forces developing nations into a subordinate position, focusing on resource extraction and debt repayment rather than autonomous industrialization. and social democracy. They replaced it with the current model of global economics, neoliberalismSupply Side Economics Full Description:Supply-Side Economics posits that production (supply) is the key to economic prosperity. Proponents argue that by reducing the “burden” of taxes on the wealthy and removing regulatory barriers for corporations, investment will increase, creating jobs and expanding the economy. Key Policies: Tax Cuts: Specifically for high-income earners and corporations, under the premise that this releases capital for investment. Deregulation: Removing environmental, labor, and safety protections to lower the cost of doing business. Critical Perspective:Historical analysis suggests that supply-side policies rarely lead to the promised broad-based prosperity. Instead, they often result in massive budget deficits (starving the state of revenue) and a dramatic concentration of wealth at the top. Critics argue the “trickle-down” effect is a myth used to justify the upward redistribution of wealth.. Explaining History helps you understand the 20th Century through critical conversations and expert interviews. We connect the past to the present. If you enjoy the show, please subscribe and share.▸ Support the Show & Get Exclusi