Does anyone here know enough economic history to inform me as to what most economists think caused the inflationary period of the '70s? I'm trying to find some correlation to today's situation. I would guess, but don't know, that it was mostly the result of spending on Viet Nam war, LBJ's Great Society programs, and printing of money to fund them.
Any clue in '70s inflation?
- Thread starter Stosh
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The chart reminds me that they used the terms "cost push inflation" and "stagflation" in describing this period. I'm interested if economists today have any consensus as to what might have been root causes of this. I don't know but I would guess it was the spending of the '60s????? Other opinions??
Stosh
Stosh
What caused the inflation of the 70s was the defecits we built up from the great society programs and the Vietnam war, we also flooded the world with dollars
The world lost confidence in the dollar and decided to exchange for gold,
It forced Nixon of the gold standard and a dollar devaluation because the world was exchanging dollars for gold
The other insight is that the government fought the free market tooth and nail
We got price controls, wage control and that resulted in high unemployment and rationing of goods
It was a missrable time so my father tells me
we are right on track for reliving the 70's x 10
The world lost confidence in the dollar and decided to exchange for gold,
It forced Nixon of the gold standard and a dollar devaluation because the world was exchanging dollars for gold
The other insight is that the government fought the free market tooth and nail
We got price controls, wage control and that resulted in high unemployment and rationing of goods
It was a missrable time so my father tells me
we are right on track for reliving the 70's x 10
Oil Shocks were primary. Deficit spending to fund the military and the wind down of the war were significant.
All so this was pre personal computer days. Our productivity was very low back then and with out the computers to help them improve it was slow going in some industries.
Also unions had big companies by the ball and were always coming out with new contracts. It drove the airlines, car companies, steel companies in the ground.
John
All so this was pre personal computer days. Our productivity was very low back then and with out the computers to help them improve it was slow going in some industries.
Also unions had big companies by the ball and were always coming out with new contracts. It drove the airlines, car companies, steel companies in the ground.
John
I read, back then, that it was Carter's policies. He influenced interest rates so poor countries could pay back their debt.