Saturday, December 13, 2014
Should we give Jimmy Carter credit for the 81 recession?
Am I being to hard on the great communist Ronald Reagan? Although the 81 recession occurred only six months after he started. But Jimmy had his recession in 1980, and it was a mild one. However, it is hard to blame the 81 recession to Reagan, though he is a Big Spending, big government communist with the deficits don't matter philosophy. You can see the blue line going down once he hit office, that would be more spending, and more deficits. In fact, Reagan is the one who started the deficit monster. Actually Volker pulled the plug in 1980 when he raises the reserve requirements and thus raised rates. Actually the only central in the last 40 years to actually raise rates. Tough call.
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