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The Second Turning: Inflation

The law of diminishing returns would have brought about an end to post war growth. As Warren Buffett would say (in another context), "growth inevitably forges its own anchor."  The beginning of the first turning had easy comparisons against a world laid low by wartime destruction, the end of era had tough comparisons against what had gone on before, which is why it ended. Another annoying aspect of the first turning was that "everyone" had "gotten theirs,"--except some minorities (especially blacks) and most women. 

An overly confident "World War II generation" started electing Presidents (Kennedy, Johnson, Nixon), and trying to do everything at once, providing guns and butter at the same time. Ironically, it was their children, the Baby Boomers, who realized that the nation couldn't do everything, and started insisting on national priorities (butter over guns, for instance). This caused income (in the form of welfare payments) to be directed to possibly deserving, but ultimately unproductive people, while curbing the wartime development that had characterized the World War II era.

All these factors brought growth to a halt, at the same time that aggregate demand, based on PREVIOUS growth, was being "revved up." The result was inflation (too much demand chasing too few goods and services). The ethos of the time was that earlier growth had come at too great a cost (e.g. too much pollution). Therefore, society (in the form of environmental and other regulation), opted to err on the side of too little, rather than too much growth.

About the same time that the pie stopped growing, concerns grew about how the pie was SLICED. Young women (and minorities) garnered executive track positions for almost the first time. This led to greater social diversity, but also to greater competition for the relatively few spaces available at the top.