Reagan and the Economy: the 1982 Recession
Economy | Information | History | Online | Facts | World | Global | Money
The 1982 recession during the Reagan Administration resulted in high interest rates, homelessness, and unemployment. "We are really in trouble," Reagan confided to his diary.
Comments
-
Not true. The high interest rates were intentionally designed to cause two recessions. The idea of Volcker's manipulation of money supply (selling Treasuries to banks to increase interest rates) was to break the backs of the middle class and restore the power of Wall Street. It worked. The high interest rates + tax cuts for the rich made bondholders (the American 1 percent) very rich in the context of receding interest rates throughout the 1980s.
2m 42sLenght
12Rating