Quote:
Originally Posted by AeroGuyDC
Jimmy Carter's recession was not comparable to Bush's recession. Barack Obama had nowhere to go but up, so how could there not be relatively good growth???
There is nothing magical about Barack Obama. At the end of the day, a 100% increase in one penny still leaves me with just 2 cents.
|
Actually Jimmy Carter didn't have a recession.
Jimmy Carter came into office in January, 1977 when unemployment was 7.5%
In February, 1977 unemployment went up to 7.6% and then promptly dropped down to the 5% and 6% range staying there throughout his presidency not rising to 7.6% again until June, 1980.
In July, 1980 unemployment went to 7.8% whch was the highest recorded in the Jimmy Carter presidency.
August 7.7%
September 7.5%
October 7.5%
When Reagan took office unemployment was 7.5% where it stayed pretty steady, even dropping to 7.2% for a couple months, until November, 1981 when it went to 8.3%. From November, 1981 unemployment steadily got worse rising practically every month until November, 1982 when it spiked at 10.8%.
From November, 1982 until the end of the Reagan Presidency the unemployment steadily dropped to eventually 5.4% when Reagan left office In January, 1989.
So what was the matter with Carter?
It was the
MISERY INDEX and for those of you under 40 you are to young to remember for real misery you had to experience INFLATION.
You think 10% unemployment is bad you should experience 14.73% inflation which was reality in April, 1980.
14.73% unemployment hurts 14.73% of the people.
14.73% inflation rate hurts 100% of the people and don't you forget it either.
Jimmy Carter didn't lose because of high unemployment numbers he lost because of high inflation rates.
http://www.usinflationcalculator.com/
If you were paid $12,000 in 1979 that was equivalent to $39,380.17 in today's dollars.
With inflation the way it was that same $12,000 in 1980 was equivalent to $34,696.60 today meaning you just got the shaft with an equivalent cut in pay of $4,683.57 for the year for $390.30 each and every month.
By 1981 that same $12,000 was equivalent to $31,452.15 today meaning you took the shaft again approaching a one fourth cut in pay!
If you think it is hard buying a house now you should have tried in 1980 when a good mortgage rate was fixed at 15%.
It really ticks me off every time some idiot comes out defending Carter while blasting Reagan because I can tell the idiot wasn't even alive then.
Blah, blah, blah... I hear you "well just get a raise to keep up" sounds good but Carter the Dummy tried something that has been tried since the reign of the Roman Emperor Diocletian and has never worked: wage and price controls. Yep, that is exactly how STUPID Carter was "just because it's never worked in 2,000 years of history doesn't mean we shouldn't try it again". I swear at the time Carter was president I thought he had an IQ approaching 50.
Jimmy Carter the stupid delivered this televised speech on October 24, 1978.
Quote:
I do not have all the answers. Nobody does. Perhaps there is no complete and adequate answer. But I want to let you know that fighting inflation will be a central preoccupation of mine during the months ahead, and I want to arouse the nation to join me in this effort.
There are two simplistic and familiar answers which are sometimes proposed -- simple, familiar, and too extreme. One of these answers is to impose a complicated scheme of Federal government wage and price controls on our entire free economic system. The other is a deliberate recession which would throw millions of people out of work. Both of these extreme proposals would not work, and they must be rejected.
|
When Mush Mush gave his speech inflation was at 8.93% and from October, 1978 inflation steadily and relentlessly went up hitting 12.07% the following October, 1979 and 12.7% in October, 1980.
So much for trying wage and price controls, you dummy!
Reagan came into office and the only way out was a deliberate recession which is what Carter rejected. It was a bitter pill but two years after Reagan took office inflation was down to 3.71% and it continued to fall after that.
But think about inflation running at 15%.
If you earn $4,000 a month now next month that same $4,000 will have the purchasing power of $3,950 and the month after that $3,900 and by the end of the year you lost $600 in purchasing power which is a good car payment and a long way towards a mortgage in many parts of the country.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
)
