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To: Moonman62
None of that explains what we Americans did to end the inflation of the 70s.

That bizarre claim is entirely yours, no one else has ever made anything like it, and I'm curious what rationale you can possibly come up with.

Since you ducked giving an explanation in your last post, my guess is that you don't have an explanation. Not a surprise, because there isn't one.

Nor did you say how old you were in the 1970s. Considering your odd theories I doubt that you were there.

12 posted on 12/18/2019 6:58:05 PM PST by Pelham (Obama. Seditious conspiracy. Misprision of treason.)
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Most of the credit should go to the American people for taming high inflation. They have the natural ability to grow the economy when the government gets out of the way. The incredible growth of the technology sector and the role of venture capital was particularly significant in reducing inflation. Reagan got the government out of the way enough for the American people to do their thing.

Economic growth increases supply making price increases from shortages less likely. Economic growth also increases government revenue, reduces dependency on government redistribution, and eliminates the need for stimulus spending. Growth of the technology sector makes the economy more efficient and brings down prices. Reagan had faith in the American people, unlike Nixon, Carter, or Volcker.

On the flip side of the coin, everywhere there is high inflation, there is damage to the supply side of the economy. Zimbabwe and Venezuela are recent examples of that.

Volcker caused a nasty recession and set the foundation for the savings and loan crisis. He doesn’t deserve credit for anything more than that.


14 posted on 12/18/2019 9:24:45 PM PST by Moonman62 (Charity comes from wealth, or producing more than we consume.)
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