In today’s “Washington Calling” section of the Journal Star, Scripps Howard News Service writer Lance Gay states, “As energy price increases soak through the economy, look for the Federal Reserve to change course to battle the horrors of stagflation, which last was seen during the Nixon administration.”
Um, try the Carter administration, Mr. Gay. Look it up.
I think you are confused. It was Nixon you had price freezes to stop stagflation. I think there was a rock song, American Woman, that was written because of Nixon and his freeze on prices.
His quote was that stagflation was last seen during Nixon’s term — but stagflation was still around (and worse) in the late ’70s, under Carter’s watch. Whatever one happens to believe about Carter’s culpability in perpetuating stagflation, the fact is that it was still going on while he was in office. Thus, it was not “last seen during the Nixon administration.”
Correct CJ, and it was much worse under Carter. High inflation and high unemployment both. The price “freezes” Nixon imposed were not entirely successful, but they did reduce inflation, and unemployment was relatively low. That was before “free trade” shipped millions of jobs out of the coutry, and before those jobs were “replaced” with “service” jobs.
All of you are wrong … in a sense.
Presidents are often held accountable for the economic conditions that happen during their terms in office. But the fact is that when the economy tanks it is more due to the policies put in place 10 or even 20 years earlier. And even that is neglible. The economy is whatever the free market says it is. Politicians can tinker and maybe make matters worse. But as long as politicins cater to voters, they will always try to interfere. Does anyone really think the “tech bubble” prosperity of the late 1990s was Bill Clinton’s doing?
Careful Bill… That would mean Reagan/Bush were responsible. Doesn’t that go against your entire being? 🙂
The point isn’t who’s fault it is, the point is when it was last experienced. And there’s no denying the last time the country experienced stagflation was during the Carter administration. That’s all I’m saying.