08-31-2016, 12:14 PM
(08-31-2016, 12:07 PM)Bob Butler 54 Wrote:(08-31-2016, 11:58 AM)Eric the Green Wrote: And the main problem is that LBJ thought we could have lots and lots of both guns and butter. Inflation began to grow as a result. Carter was very conservative, insisting that the Democrats must stay within budget constraints, according to the PBS doc on Carter. Less spending had been the trend since 1967-68, and especially since the war wound down in 1973. The energy crisis then occurred, pushing inflation upward, and that was the main source of the Carter malaise in the late 70s. Reagan just took supply side to ridiculous extremes, and it only worked for the wealthy. Our growing inequality dates mostly from Reagan's time.
Nixon taking the US off the gold standard is another neglected factor. The economic theories that prompted that move didn't predict or prevent stagflation. Coming off the gold standard was likely the right move, but it turned the 1970s into an economic mess. Carter doesn't get enough credit for doing the right but unpopular thing.
Except Carter was initially popular for being fiscally restrained, according to the doc. I guess maybe going off the gold standard would make the economic system more subject to ups and downs. However, I doubt that the standard used makes much difference; whatever is used just an arbitrary, symbolic standard. Also, we already had silver certificates for dollar bills, and in the mid-sixties they were replaced with Federal Reserve Notes. This indicates to me that our dependence on debt dates from then, when LBJ declared simultaneous war on poverty and war in Vietnam.