Liberal Forum

Cannonpointer » 18 Feb 2014 3:35 pm » wrote:

The achievement of Reaganomics can only be fully understood by recalling the miserable state of affairs a quarter-century ago. Newsweek summarized the national mood when it wrote in 1981 that Reagan "inherits the most dangerous economic crisis since Franklin Roosevelt took office 48 years ago."

That was no exaggeration. The economy was enduring a cycle of rising inflation with growing levels of unemployment. Remember 20% mortgage interest rates? Terms like "stagflation" and "misery index" entered the popular vocabulary, and declinists of various kinds were in the saddle....

The reigning Keynesian policy consensus had no answer for this predicament, and so a new group of economic ideas came to the fore.
http://online.wsj.com/news/articles/SB1 ... d_outlooks