Jimmy Carter. Great human being, horrible president.
Jimmy Carter. Great human being, horrible president.
Jimmy Carter underestimated the ability for the establishment in Washington, including among the Dems leaders in Congress to fight against his efforts to strip pork from federal spending. And he badly misjudged the expected fallout of letting the Shah of Iran enter the US to get cancer treatment in New York City. But he should be praised for several huge economic reforms that Reagan ended up being able to get credit for:
1) deregulating a number of critical US industries that had a stranglehold on the economy, namely, the fossil fuel, trucking, and airline industries.
2) relentless pushing of federal energy saving measures, when combined with the deregulation of the fossil fuel industry, helped to break the pricing power of OPEC by the middle 1980s.
2) Appointing inflation-fighter, Paul Volcker to the Chair of the Federal Reserve Board, who immediately took very necessary steps to curb inflation.
If Carter hadn’t misstepped on handling Iran and managed to win a second term, he probably would have left office at the end of his second term hailed as a hero by voters and historians for rescuing the American economy. Instead, Reagan benefited from these very politically costly measures and was able to tout how it was “Morning in America again” because of his leadership on economic policy in his re-election campaign in 1984.
Have a big project due next week at work. Kinda hoping he'll pass away this week so we get a day off for "national mourning"
This is partially correct, but you're giving him too much credit.
In general, his foreign policy skills sucked, which you'd have expected, given his inexperience. The Iran situations were some of it, but how about the situation with the Soviet Union at the time? The US was looking weaker and weaker, and Carter's form of standing up to the USSR was to boycott their Olympics. LOL.
You're correct about the deregulation. This was important, and ironically, the "D" word is now considered profanity with today's modern left. But yes, Carter deserves credit for it.
The federal energy saving measures were necessary, but not as important as you're giving them credit for.
He appointed Volcker in August 1979, yes. But he acted far too late regarding the inflation problem, which had existed for years. Also, Volcker himself caused a lot of controversy during the Carter years, initially raising the prime interest rate over 21%, thus causing a rippling effect upon the US economy, including a staggering 14.8% inflation rate in early 1980! Much of this was to attempt to weaken the dollar in order to compete with the Japanese, but the opposite happened, and the dollar strengthened, making the problem even worse. Some industries damaged by this, such as the machine tools industry, never recovered.
Volcker did much better during the Reagan years.
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I agree that Carter misstepped with his first Fed Chair appointment (Miller), but course corrected the next year by essentially promoting out of a job that Miller wasn’t good at to point of alienating most of the Fed Board, and replacing him with Volcker, who Carter knew would aggressively fight inflation, economic growth be damned.
Also, Carter pushed through banking reforms in early 1980 that gave the Federal Reserve much more power to combat inflation. The recession that resulted from Volcker’s inflation fighting ended up contributing to Carter losing re-election to Reagan later that year. And because Reagan could “blame” the poor economy during the first few years of his first term in office on his predecessor, he looked like an economic miracle worker by 1984 when Volcker’s inflation fighting had finally worked it’s way to dramatically dampening inflation while no longer being a drag on the economy, just in time for Reagan re-election run.
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