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To: NVDave

He did nothing, while the economy burned. That doesn’t really count.


23 posted on 02/28/2010 8:07:26 AM PST by MetaThought
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To: MetaThought

From the author’s metrics, yes it does.

And, quite frankly, there was very little that Carter could have done to the economy to improve it. The 70’s economy was created by two issues:

1. The US removing any pretense of being on a gold standard radically devalued the US dollar, coupled with the explosion in social spending coming out of the Great Society, brought on inflation. Inflation is not a situation that the Congress or the POTUS can deal with. It has to be dealt with by the Fed and the banking system.

2. A rapid rise in oil prices almost always sends the US economy into a recession, and the rise in oil prices (as well as other commodity prices) just gutted the US consumer’s disposable income. Again, short of drilling a lot of oil in the US, which would not have appeared on the US market by the end of his first term, Carter could do little to nothing about this situation. The damage was already done before he got into office.

What Carter did do that addressed the situation: He appointed Paul Volcker as the chair of the Fed. And Volcker went after inflation with a big stick. Yes, this caused a big crimp in credit expansion, which had a recessionary effect on the US economy - but it also set the stage for the Reagan-era economic boom as rates came down after inflation was held in check.


29 posted on 02/28/2010 8:12:18 AM PST by NVDave
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