Jimmy Carter inherited double digit inflation and high unemployment, a collapsing dollar due to a foreign war and soaring oil prices in an economy much more dependent on cheap oil than the one today. He knew the only thing to bring oil prices down and kill inflation was to appoint a Fed chief that would raise interest rates dramatically, to basically engineer a recession, to drive inflation out of the economy. Electoral suicide but the right thing to do, the thing a moral and courageous national leader would do. And he did it.
Now look at the situation today. Faced with the same problems, the US needs somebody to get a grip on the current problems. McCain would cut huge chunks of tax for the nation's elites, causing bigger deficits and no economic growth. He'd have to print more dollars to cover the deficits which means increased inflation and consequently big increases in the price of the commodity most sensitive to Washington's print button, oil. And big increases in the oil price mean big increases in the price of goods and services which mean more inflation.....
Obama would probably make a reasonable attempt at tackling the problem. He'll have to contend with conservatives screaming for tax cuts for the wealthy as the only way to save the economy, but he can remind them how they reacted when Clinton raised taxes on the wealthy to balance the budget :
"I want to predict here tonight, that if we adopt this bill the American economy is going to get weaker and not stronger, the deficit four years from today will be higher than it is today and not lower ... When all is said and done, people will pay more taxes, the economy will create fewer jobs, the government will spend more money, and the American people will be worse off."
That was one of McCain's chief economic advisors in 1993.


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