Are we living in a 1970s economy once again?

The 1990s are having a moment in consumer culture. But with the world in the grip of rampant inflation, and Britain enduring a summer of discontent, it feels like we’re living in a 1970s economy.
Nineties nostalgia has been building for some time. Bold logos, which disappeared after the financial crisis, have made a splashy comeback. Burberry Group Plc has even revived its trademark black, white, tan and red check, a rehabilitation for the plaid worn by Oasis’s Liam Gallagher in the 1995 music video for “Wonderwall.” Y2K, inspired by the outfits of the mid-90s to early 2000s, is now a fashion category in its own right.
But lately, the clamour for all things 90s, particularly the earlier years, has intensified.
In fashion, the smiley face, a potent symbol of Britain’s late ‘80s and early ‘90s rave culture, has been freshly emblazoned on everything from socks to designer handbags to home furnishings. The Clarks Wallabee boot, a favorite among ravers and the Manchester band scene, was the sixth-hottest men’s item in the first quarter of this year, according to the Lyst Index. Bucket hats, which have had a luxe makeover, have been high on previous Lyst Indexes, which measure searches on the fashion platform and other sites as well as social media engagement.
And recently, Beyonce released her single “Break My Soul,” with house music’s characteristic bouncing beats and piano riffs. Some of the tracks on Drake’s new album “Honestly, Nevermind” are also reminiscent of the era’s dance tunes. It may be fear of recession that’s driving today’s obsession with all things early ‘90s. The period was characterised by a dismal economy and large-scale unemployment, although Beyonce’s track is more an ode to the Great Resignation than ringing alarm bells on redundancies.
Caution on the global economy is certainly becoming more prevalent. The New York Federal Reserve’s latest forecast puts the possibility of recession, or a “hard landing,” at 80%. And yet this anxiety comes against the backdrop of joy at being able to socialise again. That may be one reason why the euphoria of the early ‘90s dance scene is resonating.
As recession warning signs flash, the immediate problem is inflation, at a 40-year high on both sides of the Atlantic. As an economist has pointed out, the current situation mirrors the 1970s, with its winter of discontent, stagflation, real wage resistance and labor strikes. The similarities don’t stop there: The S&P 500 Index is on track for its worst first half since 1970, while the prospect of gas rationing in Europe this winter sounds like the previous era’s blackouts.
There are some signs of the decade making its way into consumer culture, too.

—Bloomberg