In address concerns that the U.S. economy might begin to mirror the problems it faced in the mid-1970s Federal Reserve chief Ben Bernanke, tried to reassure his audience (Harvard College's graduating class) that the U.S. economy was better prepared to deal with the same type of problems. According to Bernanke, "Today's situation differs from that of 33 years ago in large part because our economy and society have become much more flexible and able to adapt to difficult situations and new challenges." He must not care about an additional $8 trillion worth of debt; a manufacturing sector that has only a fraction of the economic power it had in the '70s; an energy system with only about half the domestic oil production; and a whole range of new international competitors.

While the state of the economy is probably not in the same situation it was in the 1970s with the combination of inflation, high unemployment, and little to no growth; there is a whole range of new issues. Thirty years after the first oil crisis, the United States has done almost nothing to secure its situation. The world now has thirty years less oil and many more countries putting new demands on the current supply. The extra $8 trillion in debt has certainly reduced the flexibility within the economy. In real terms the national debt is 3 times what it was in the 1970s and the interest on the debt has to be paid annually out of the budget (even if nothing is paid on the principle). This puts tremendous pressure on the value of the dollar, which also reduces the ability for the economy to gain strength. Export growth presently can only come from lowering the value of the dollar, which in turn transfers the burden to consumers who have to pay more for imports. In the 1970s the ability to increase exports via production increases still existed. Presently, the United States could export 100% of its total production and still not balance its books.

If Dr. Bernanke is simply trying to reassure an unsettled public that everything is okay then he may be doing a good job. If he actually believes it he definitely deserves the Political Bull Bullshitter of the Week Award.