Moving from our fragmented world today to a kind of golden age seems impossible at the moment. But at similar inflection points in previous climbs, it also seemed impossible. In the 1930s, it was hard to imagine those hungry, unemployed people queuing at soup kitchens as owners of a suburban house with a car at the door. And yet, this happened in a surprisingly short time. The participants in this roundtable were three long-time observers of the Perez hypothesis – including Carlota Perez. We met recently to reflect on this question: what should be done to bring a new golden age to begin, given today`s political turmoil, after at least ten years of crisis? PEREZ: But there is always a counterweight, and it is linked to a new vision of good life, which becomes a dominant theme of the golden age. In the second wave it was urban life, as defined in the cities of Victorian Britain in the 1850s. In the third, it was the cosmopolitan life of the Belle Epoque. In the fourth year, it was the American way of life of the 1950s that offset the jobs lost through technology, with massive jobs in construction, retail, services and government. Chart 17.20 shows the contrast between the material wealth of a household in the bottom fifth and the top fifth of households, based on their net wealth in 2007. Using the definitions in section 13.3 and used in section 17.4, the household`s material wealth is equal to the value of the home (which, by definition, will be equal to the sum of unpaid debts and household equity) minus mortgage debts plus financial assets (excluding housing liabilities).
Economist Roger Middleton notes that economic historians generally agree on 1950 as the beginning date of the golden age, while Robert Skidelsky points out that 1951 is the most well-known departure date.  Skidelsky and Middleton both have the end date of 1973, although the golden age is sometimes considered over. The years 1948 to 1973 were remarkable in the history of capitalism. In the United States, we saw in Chart 17.2 that productivity growth was faster and unemployment was lower than in other periods. But this golden age of 25 years of capitalism was not limited to the United States. Japan, Australia, Canada, New Zealand and Western European countries also experienced a golden age. The unemployment rate was historically low (see Chart 16.1). Chart 17.10 shows data from 1820 to 1913 for 13 industrialized countries and for 16 countries from 1950 to 1973. Chart 17.14 The end of the golden age: strikes and wages relative to the share price in industrialized countries (1950-2002). Worldwide, the golden age was a period of unusual financial stability, when crises were much less frequent and intense than before or after.
Martin Wolf reports that between 1945 and 27 years, there were only 38 financial crises in the world, compared to 139 between 1973 and 1997 (24 years).  In the face of the Great Depression, after the Second World War, most advanced economies adopted a policy that strengthened the bargaining power of workers and trade unions. On the other hand, after the golden age, the chosen policy weakened the bargaining power of workers. Supply-side advisers have not been able to recreate the unlikely package of high jobs, high investment and rising wages of the golden age. The growth in unrealized profits by investing in new equipment would also help create the next crisis. Of course, these are general observations, and there is no guarantee that the model will stop. But its general logic is persuasive. For Perez, the spectacularly powerful technologies of Wall Street, Silicon Valley and Industry 4.0 actually sparked a global economic revolution that began in the 1970s, challenging the equally powerful technologies of the fourth rise: oil, automotive and mass production.