“When inflation soared in the late 1970s, President Jimmy Carter called a weekly luncheon meeting of his top economic advisers where they tended to be overly optimistic about how high prices would rise,” the New York Times reports.
But the political consequences of rising prices could not be avoided: By 1978, Democrats had lost seats in the House and Senate. The Federal Reserve raised interest rates so aggressively that it pushed the economy into a “painful recession.”
“President Biden and the Democrats in power are now facing a similar dilemma because they are telling Americans that inflation will be short-lived after a year. But Carter called on the elders in the administration to feel a greater sense of urgency than Mr. Biden, despite his limited ability to cut prices.
Save to favorites