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he appointed Volcker towards the end of his term. Inflation had been a growing problem throughout all of the 70s. Read about Nixon's diastrous attempt at price
by starkd 4y ago
he appointed Volcker towards the end of his term. Inflation had been a growing problem throughout all of the 70s. Read about Nixon's diastrous attempt at price controls. Ford had his WIP ("Whip Inflation Now") campaign.
Inflation was not fixed with just the hike in rates. It took well over a decade for it to come down to near zero rates. The hike in the fed fund rates sent the economy into stagflation. The economy was also aided by Reagan's tax cut package. It was passed by a Democrat House.
- mikeyouse 4y agoReagan's tax cuts were passed in late 1986 and didn't fully come into effect until 1988.. here's the chart of Real GDP from before Carter to early Bush I: https://fred.stlouisfed.org/graph/fredgraph.png?g=10d3t https://fred.stlouisfed.org/graph/fredgraph.png?g=10d3t The tax cuts were incidental to the better economy in the 1980s, and couldn't have caused it since they weren't in effect until well after things had recovered.
- starkd 4y agoThat is flat out wrong. There were two bills. The first was in 1981, where the major adjustments were made. However, revisions were made in 1986. Most of a president's agenda is enacted in the first year of their adminstration. https://money.cnn.com/2010/09/08/news/economy/reagan_years_taxes/index.htm https://money.cnn.com/2010/09/08/news/economy/reagan_years_t... "Soon after taking office in 1981, Reagan signed into law one of the largest tax cuts in the postwar period"