16 Feb 2023 1:09 pm
Reagan inherited Carters incompetence. Inflation leading to stagflation was rising under Carter and when the inflation got out of control the fed raised interest rates. Carter begged Volker to STOP. Volker, unlike Powell and Yellin, knew how to kill the inflation. Volker raised interest rates to the rate of inflation The housing market was the first to collapse. No one could afford to buy a house and construction ceased. Commercial real estate collapsed. The auto industry was next. No one could afford the interest rates on a car loan. Unemployed rose to %9. Layoffs in the tech industry have already started. The consumer is loaded with debt and soon retail sales will collapse. Powell is far behind the curve. Interest rates will keep rising and Biden will surely be blamed as Dems cannot stop spending. Dems were responsible for the inflation under Carter and they are responsible for the inflation now. After the inflation receded the economy under Reagan boomed. This period of growth lasted all the way through Clinton.