FDR inherited a problem that we now know to have been largely of the Fed's making and exacerbated by the imposition of tariffs. FDR tried new things and gave great speeches but the economy sustained near-zero growth for over a decade and third-world-level unemployment persisted until the dawn of WWII.
Reagan inherited problems that the conventional wisdom at the time did not understand. There were fuel shortages, there was high unemployment with high consumer price inflation, and militarily the USSR was gaining the upper hand. Reagan ended fuel price controls and within six weeks fuel shortages were gone. Reagan cut tax rates, allowing the economy to reinvest more of its earnings, which in turn allowed the Fed to not have to worry about growth and to focus instead of taming inflation, which to this day remains tame. Absolute economic mobility has also increased dramatically, and the USSR no longer exists.
They both talked a great game but only Reagan got results.
2007-03-05
04:38:55
·
14 answers
·
asked by
Anonymous
in
Politics