In case you haven't noticed, and judging by the number of replies on this thread, you haven't....liberalism is a joke.
Posted on 12/03/2008 10:11:03 PM PST by Eric Blair 2084
The TIME economists agreed that one of the major problems facing the Reagan Administration is the expectation of sustained price rises. Union leaders, bankers and businessmen have all built socalled inflation premiums into their plans. As a margin of safety in case rapid inflation persists, they add a few extra percentage points to a wage demand, the rate of a loan or the price of a new product. Said Greenspan: "The psychological impact of inflation is greater than at any tune in the postwar era." The task of the new Administration will be to convince the American public that these expectations are no longer valid and that price increases will soon start to slow down.
A [ministration officials argue that tough action to cut the budget would have a major impact on public psychology and cause inflation to decelerate rapidly. They point to the experience of the period between 1974 and 1976, when inflation dropped precipitously, from 12.2% to 4.8%. Greenspan supported that optimistic viewpoint, saying, "If the President succeeds in pushing through these budget cuts, it would be a major watershed in economic policy. The change in inflation expectations could be quite dramatic."
Greenspan, though, was sharply challenged by Schultze, who maintained that inflation has become so deeply embedded in the American economy that it could be removed only by several years of tight budgets and moderate growth.
The Reagan program, he asserted, will have no quick impact on either wages or productivity. Concluded Schultze: "I think it is very dangerous to hinge so much on the ability to do this in a hurry because the prospects for disappointment are at least high, and one could really come a cropper."
(Excerpt) Read more at time.com ...
God bless them, they post their archives in a very organized fashion.
They are like the 260 pound 70 year old nude sunbather on a beach in Nice. Completely clueless that everyone can see what they are about and giggle...they think they're beautiful and will walk around in a thong.
In case you haven't noticed, and judging by the number of replies on this thread, you haven't....liberalism is a joke.
What is the point of this article? Budget cuts are too dangerous because everyone’s too used to inflation?
I should know better. I learned my lesson.
“I should know better. I learned my lesson.”
I’m not sure I follow you.
Look at the date on the article.
1. Next time I’ll make it clear.
2. This is the last time I take a 4 hour nap after work and can’t go back to sleep because I fear for the future of our Republic.
“Look at the date on the article.”
I noticed that right away. Plus, they were talking about Reagan, so even if I missed the date, I don’t really know how confused I could have been.
Nonetheless, I’d like to understand what the article is trying tosay, if only out of historical curiosity.
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