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So what? Ultimtely the economy rocketed because of his actions.
No, no it didn't. Most of you seem to have not been alive at the time so I'll enlighten you. The big problem in the late 1970's was inflation due to high oil prices which tanked the economy along with low interest rates as the Fed tried to get the economy moving again. This was the so called stag-flation because instead of growing in absolute terms most businesses (especially heavy industry) spent its time trying to figure out how to use less energy (especially expensive foreign oil).
Carter appointed Paul Volker as head of the Fed as Volker was known as the leading economist known to fight inflation even though Volker said the shock would hurt economy very deeply in the short run but greatly improve long term growth potentiometer. Volker raised interest rates from near zero all the way up to 13.5% thus bringing the economy to a screeching halt but also killing inflation which he saw as the worst economic threat. This move pretty much killed Carter's chances for reelection but it also set the stage for economic expansion in the 1980's. It was so obvious that Volker was responsible for ending stag-flation that even Reagan was forced to keep Volker as the Fed Chairman when wall st balked at Reagan's trial balloons to replace Volker with a supply sider.
Constant comparisons to Ronald Reagan are proof that Reagan was the hero that the world thinks he is. And it really, really riles the left. I think its hilarious.
Actually, I thought Reagan was a great president. But thank you for doing my thinking for me. It's what your type tends to do best.
No, no it didn't. Most of you seem to have not been alive at the time so I'll enlighten you. The big problem in the late 1970's was inflation due to high oil prices which tanked the economy along with low interest rates as the Fed tried to get the economy moving again. This was the so called stag-flation because instead of growing in absolute terms most businesses (especially heavy industry) spent its time trying to figure out how to use less energy (especially expensive foreign oil).
Carter appointed Paul Volker as head of the Fed as Volker was known as the leading economist known to fight inflation even though Volker said the shock would hurt economy very deeply in the short run but greatly improve long term growth potentiometer. Volker raised interest rates from near zero all the way up to 13.5% thus bringing the economy to a screeching halt but also killing inflation which he saw as the worst economic threat. This move pretty much killed Carter's chances for reelection but it also set the stage for economic expansion in the 1980's. It was so obvious that Volker was responsible for ending stag-flation that even Reagan was forced to keep Volker as the Fed Chairman when wall st balked at Reagan's trial balloons to replace Volker with a supply sider.
They also seem to have forgotten about, or never bothered to learn about, both the '80s Recession or the Savings & Loan Crisis, which Bill Clinton had to try to clean up.
No, no it didn't. Most of you seem to have not been alive at the time so I'll enlighten you. The big problem in the late 1970's was inflation due to high oil prices which tanked the economy along with low interest rates as the Fed tried to get the economy moving again. This was the so called stag-flation because instead of growing in absolute terms most businesses (especially heavy industry) spent its time trying to figure out how to use less energy (especially expensive foreign oil).
Carter appointed Paul Volker as head of the Fed as Volker was known as the leading economist known to fight inflation even though Volker said the shock would hurt economy very deeply in the short run but greatly improve long term growth potentiometer. Volker raised interest rates from near zero all the way up to 13.5% thus bringing the economy to a screeching halt but also killing inflation which he saw as the worst economic threat. This move pretty much killed Carter's chances for reelection but it also set the stage for economic expansion in the 1980's. It was so obvious that Volker was responsible for ending stag-flation that even Reagan was forced to keep Volker as the Fed Chairman when wall st balked at Reagan's trial balloons to replace Volker with a supply sider.
The reason oil prices were high (along with everything else we imported) is because the dollar was at a post-WW2 low. In 1976 we became a net importer for the first time since WW2. Carter thought a weak dollar would spur exports and save jobs (sound familiar?). Well, it saved the jobs because our currency was so weak all we could afford was our own goods. Someone should have told Carter that this weak dollar strategy only works if you don't have to buy things from other nations to produce the exports we sell to other nations. Oil would be an example of something we had no choice of buying from other nations. So what we did was effectively raised the price of imported petroleum and lowered the price of our exports made with imported petrolem that now cost more.
"Carter was elected with a voter mandate to slow inflation, but in June 1977, Treasury Secretary Michael Blumenthal communicated to the markets his desire to see the dollar weaker. He got his wish. The dollar price of gold rose 270 percent to $850 an ounce during Carter’s presidency. Inflation skyrocketed to 14 percent. The greenback fell so much in purchasing power during Carter’s reign that in 1980 the joke was that if you found a dollar lying on the ground, you’d pick it up to see if there was anything of value underneath it. The dollar was at a post-World War II low at the end of Carter’s presidency. His Keynesian economists thought a weak dollar and inflation would create jobs. That didn’t happen. Inflation and unemployment reached a combined 20.5 percent in Carter’s last year."
No, no it didn't. Most of you seem to have not been alive at the time so I'll enlighten you. The big problem in the late 1970's was inflation due to high oil prices which tanked the economy along with low interest rates as the Fed tried to get the economy moving again. This was the so called stag-flation because instead of growing in absolute terms most businesses (especially heavy industry) spent its time trying to figure out how to use less energy (especially expensive foreign oil).
Carter appointed Paul Volker as head of the Fed as Volker was known as the leading economist known to fight inflation even though Volker said the shock would hurt economy very deeply in the short run but greatly improve long term growth potentiometer. Volker raised interest rates from near zero all the way up to 13.5% thus bringing the economy to a screeching halt but also killing inflation which he saw as the worst economic threat. This move pretty much killed Carter's chances for reelection but it also set the stage for economic expansion in the 1980's. It was so obvious that Volker was responsible for ending stag-flation that even Reagan was forced to keep Volker as the Fed Chairman when wall st balked at Reagan's trial balloons to replace Volker with a supply sider.
Um yeah, I was alive at the time. Reagan was the first President I voted for. It isn't clear at all that Volker was responsible for massive job creation. It is clear that the lowering of the top marginal income tax rate from 70% to 28% unleashed huge job creation.
So what? Ultimtely the economy rocketed because of his actions. His actions were the complete opposite of the actions of the Obama administration and people understand what the results will be.
Reagan passed on the debt to our generation. He cut taxes and drove up spending. We weren't exactly in the black fiscally during Reagan years.
He gave people stuff and didn't expect them to pay for it, expecting the later generation to do so. Now, almost 30 years later, we're in more debt, more oil dependent, and even more childlike because the bill is long past due. Thanks Reagan.
I wonder how many Conservative Reagan Republicans realize that his approval ratings at this point in his Presidency were actually LOWER than Obama's? Obama's current job approval stands at 49%. Gallup.Com - Daily News, Polls, Public Opinion on Government, Politics, Economics, Management During Reagan's second year his approvals were in the low 40's. Reagan did not inherit half problems Obama inherited from the George W Bush.
"Things got worse for Reagan in 1982. The public's view of the economy remained sour, and the president's ratings during 1982 stayed concomitantly low, in the 40% range, ending the year at 41%. The 1982 midterm elections were not good ones for Reagan and for the GOP. The Republicans lost about 25 seats in the House."
Very few have written President Obama's epitath. While I do not care for his governance, I suspect he will get a second term if for no other reason than the GOP is still disorganized.
And, if the GOP takes one or both houses of Congress, forcing compromise, he may start to do quite well.
I wonder how many Conservative Reagan Republicans realize that his approval ratings at this point in his Presidency were actually LOWER than Obama's? Obama's current job approval stands at 49%. Gallup.Com - Daily News, Polls, Public Opinion on Government, Politics, Economics, Management During Reagan's second year his approvals were in the low 40's. Reagan did not inherit half problems Obama inherited from the George W Bush.
"Things got worse for Reagan in 1982. The public's view of the economy remained sour, and the president's ratings during 1982 stayed concomitantly low, in the 40% range, ending the year at 41%. The 1982 midterm elections were not good ones for Reagan and for the GOP. The Republicans lost about 25 seats in the House."
The unemployment rate in June 1982 was 9.8% (BLS) It rose to over 10 percent in September and stayed double digit for 10 months. This was in addition to a prime rate of 16% at this point in his first term. Like Obama he was elected largely on economic issues. Whether Obama will do as well as Reagan for the rest of his term remains to be seen. Oh, don't forget that in March of 1991, with a gulf war victory, Bush (the elder) looked unbeatable.
The unemployment rate in June 1982 was 9.8% (BLS) It rose to over 10 percent in September and stayed double digit for 10 months. This was in addition to a prime rate of 16% at this point in his first term. Like Obama he was elected largely on economic issues. Whether Obama will do as well as Reagan for the rest of his term remains to be seen. Oh, don't forget that in March of 1991, with a gulf war victory, Bush (the elder) looked unbeatable.
Bush 1's defeat was partly because of Reagan jet lag.
Bill Clinton is and was one hell of a politician as well.
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