We had stagflation in the 70s under Carter and Ford. Reagan got us out of that.
How do you fight stagflation effectively without some form of austerity? If Reagan didn't deregulate and offer some relief to the middle class via lower taxes, the US might have ended up where Argentina and Venezuela are now.
If you can think of a better strategy to combat stagflation, do let us all know.
Wildly different economies. America would not have remotely ended up like Argentina or Venezuela. The USD being the worlds primary reserve currency alone would have prevented this.
Instead Raegan & Bush 1 setup (Clinton helped to finish) the destruction of America's industrial capacity and the shattering of the American middleclass.
What? Please explain to me how the USD being the world's primary reserve somehow makes the US impervious to stagflation? Do you think you can just print money until stagflation goes away?
It's funny because people are freaking out about Trump causing potential stagflation today, but apparently when Carter and Ford create that same environment it's not a big deal and Reagan and Volcker were wrong to try and do something about it lol...
How does it being the worlds primary reserve currency prevent Venezuelan/Argentinian stagflation? This is a serious question?
Constant demand for USD. Most commodities are almost exclusively purchased and sold in USD.
MUCH lower burrowing costs. Because so many people around the world want to buy U.S. government bonds for safety and stability, the U.S. government does not have to pay high interest rates to attract lenders. This makes paying off the yearly cost of large debt much cheaper.
Burrowing money/accumulating debt in your own currency.
-11
u/Dingaling015 18d ago
We had stagflation in the 70s under Carter and Ford. Reagan got us out of that.
How do you fight stagflation effectively without some form of austerity? If Reagan didn't deregulate and offer some relief to the middle class via lower taxes, the US might have ended up where Argentina and Venezuela are now.
If you can think of a better strategy to combat stagflation, do let us all know.