The Master Pattern
The “solution” to stagflation wasn’t a true structural reform at all — it was a pivot from intensive development to extensification, extensive growth, or gross growth, a classic late‑civilizational maneuver. And adding the S‑curve makes the pattern unmistakable. The S‑curve is the master pattern: 1. Innovation phase — new instruments of expansion 2. Expansion phase — rapid growth 3. Institutionalization — instruments become vested interests 4. Stagnation — institutions block further intensification 5. Attempts at reform — usually fail 6. Extensification — geographic, financial, or extractive expansion to compensate 7. Breakdown — when extensification can no longer mask stagnation Stagflation in the 1970s was the moment the U.S. hit phase 4: the old instruments (industrial production, Bretton Woods monetary discipline, postwar labor‑capital bargains) could no longer intensify growth. Volcker’s shock didn’t fix the system — it reset inflation expectations while leaving the underl...