Olee I thought Youd by quick about pointing out that when mr.phil2u mentioned price controls under Carter, he failed to note that Nixon instituted thecoil price controls and Carter removed them as part of his deregulation policies.
Mr.phil2u, when you implied that Nixons price cotrols were Carters, were you being dishonest or uninformed?
Hgff100 1/2. !! Coming up short. I voted for Carter but sitting in a long gas line every other day getting $2 worth of gas ticked off. The big difference between Carter and BO is Carter had good intentions. Good day Troll !!!!
When Nixon took the dollar off the gold standard, money essentially became worthless and inflation roared. So of course the price of oil went up accordingly. Oil producing nations were receiving refined petro and food products like wheat at inflated prices of 300% and more, so they decided to correct this imbalance by raising the price of crude oil.
The 1973 war made things worse, OPEC wanted to punish the U.S. which was/is Israel's only ally.
Can't blame Jimmy for the 1979 energy crisis. All started with the Iranian revolution, which is the fault of U.S. foreign policy in the 1950's. The U.S. removed the democratically elected president of Iran and replaced him with the brutal Shah.
Guess what happens when a country is in a revolution, they don't produce oil. Bless Jimmy, the only decent man to hold the office of president. I would count RFK too, but they killed him before he had the chance.
Except it's not true. There were plenty of inflationary periods under the Gold Standard, and they were more volatile because of the inefficiency of using a heavy rock as money on a planet that's got banks that are 20,000 km apart. There was also the problem of starvation for the commodity itself, which was the crisis that faced Nixon. The other nations signatory to the Bretton Woods agreement started to squeeze the US and demand gold be delivered. That was increasing the US's cost of capital, and Nixon kicked Bretton Woods out to prevent being cornered.
The inflation was caused by the same thing that's always caused predictable inflations: the cost of war. When population and productivity growth are accounted for, the history of inflation and recession consist of relative stability punctuated by huge spikes in wartime. Nixon's decision to prolong and expand the Viet Nam war is what caused the double-digit inflation of the 70s and 80s.
When I was attending The University of Michigan Business School [MBA], I had a class from Paul McCracken who was the Chairman of the President's Council of Economic Advisers under Richard Nixon. One day he asked what caused the big inflation under Nixon, and continued through Carter as well. I responded that it was going off the gold standard by Nixon ... Ray gets a gold star.