and Prop 13, in some nutty place called California.


On Thu, Feb 19, 2009 at 4:28 PM, Jim Devine <[email protected]> wrote:
> My sister asked me:
>
> What were the Major Economic News Stories 1978-1984?
>
> My answer:
>
> 1. The 1979 Iranian revolution, which led to soaring oil prices
> afterward, especially when it turned into the Iraq/Iran war.
>
> 2. This encouraged stagflation in the US, meaning high inflation
> combined with rising unemployment. (This added to the pre-existing
> stagflation and encouraged Jimmy Carter to talk about a "malaise.")
>
> 3. The Three Mile Island disaster of March 1979.
>
> 4. The appointment of Paul Volcker to run the Federal Reserve in
> August 1979 led to a new anti-inflationary tilt for policy and started
> the movement toward Calvin Coolidge Capitalism ("the business of
> America is business") we've seen growing since then.
>
> 5. There was a short-lived recession in 1980, aimed at fighting
> inflation. This was not very successful. When added to the Iran
> hostages debacle, it helped chase Carter out of office.
>
> 6. The bank reform legislation of 1980 (Depository Institutions
> Deregulation and Monetary Control Act) and 1982 (Garn-St. Germain)
> which allowed the Savings & Loan sector to do a lot of new things,
> setting the U.S. up for the S&L debacle of the late 1980s.
>
> 7. There was a short recovery, followed by the long and deep recession
> of July 1981 to November 1982, which got us up to above 10%
> unemployment in from September 1982 to June 1983 (peaking at 10.8% in
> Nov.-Dec. 1982). As usual, the job situation stayed bad even after the
> recession officially ended.
>
> 8. The Reagan tax cuts, mostly for the rich, during 1981-83.
>
> 9. There was the beginnings of a recovery, starting about 1984.
>
> This list is mostly about macroeconomics, but I hope it helps.
> ----------------------
>
> Can any pen-pals suggest additions to (or subtractions from) this list?
>
> --
> Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
> way and let people talk.) -- Karl, paraphrasing Dante.
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