ABSTRACT
The Great Recession of 1979-82 came at the end of a gradual deterioration process in our economy, the dramatic culmination of a long wave in its downswing phase. Like previous manifestations of acute structural crisis, it marked a turning point. In its wake the economy had to undergo restructuring on a scale far beyond mere recessionary adjustments in the normal course of business cycles. Existing policies, no longer able to counteract rapidly worsening conditions in the economy, lost their legitimacy. New economic theories and politicians able to turn those ideas into a vision of change emerged. Frightened and frustrated voters were willing to give both a try. And so the way was paved for reform. In 1980 this scenario catapulted Ronald Reagan into the White House.
