Ronald Wilson Reagan Part 26(How to cure inflation)

Pt 3 Friedman on how to cure inflation

Tennessee Ernie Ford & Lucy video clip

Below you will see a picture of Lucy with the Reagans. Last night my wife and I watched an episode of  “I Love Lucy” with cousin Ernie. It was great. You will notice a clip from that show above.

Reagan deserves credit for bringing inflation down. Take a look at the clip above from Milton Friedman’s film series. The strategy that Reagan adopted is in the 30 minute program which I have posted the last 3 days. Reagan bought into what Friedman had put forth. The liberals had all criticized it before Reagan’s strategy was put into practice. William A. Niskanen and Stephen Moore have sent the record straight in their October 22, 1996 paper “Supply-Side Tax Cuts and the Truth about the Reagan Economic Record.”

The late Walter Heller, a Keynesian who had served as John Kennedy’s chief economic adviser, summarized the conventional wisdom most succinctly in 1980: “The[Reagan] tax cut would simply overwhelm our existing productive capacity with a tidal wave of demand,” thus accelerating inflation.

Amazingly, even after inflation had fallen by more than half by late 1982, Reagan’s skeptics believed the progress on prices was a temporary aberration. Economist Paul Krugman, now of Massachusetts Institute of Technology, and Larry Summers of the Clinton Treasury Department warned in November 1982 of a coming “inflation time bomb.” “It is reasonable to expect a significant re-acceleration of inflation in the near future,” they wrote. “A significant portion of the slowing of consumer price inflation since 1980 does not represent a reduction in the underlying rate.”

Here are the simple facts: Jimmy Carter took office in 1977 and there was 6.5 inflation. That was followed the next year by 7.6%, then 11.3% and finally 13.5% in 1980. At this point I saw the film by Milton Friedman on how to cure inflation. What was the result over the next few years? I had read that Friedman’s policies had been put into place at the Fed in 1979 and here are the results: 1981- 10.3%, 82-6.2%, and 83-3.2%.

President Reagan, Nancy Reagan, Tom Selleck, Dudley Moore, Lucille Ball at a Tribute to Bob Hope’s 80th birthday at the Kennedy Center. 5/20/83.

Little known presidential facts:

Ulysses S. Grant (born Hiram Ulysses Grant, 1822-1885) smoked at least 20 cigars a day and, after a brilliant war victory, a nation of well wishers sent him more than 10,000 cigars. He later died of throat cancer.i

    1. Dwight D. Eisenhower had an affair with his wartime driver, Kay Summersby (1908-1975). Kay later wrote a book called Past Forgetting: My Love Affair with Dwight D. Eisenhower in which she claims he was impotent.e
    2. John F. “Jack” Kennedy most likely had the most active extramarital sex life of any president. He allegedly slept with Marilyn Monroe, Jayne Mansfield, Audrey Hepburn, Angie Dickinson, stripper Blaze Starr, Marlene Dietrich, and many other women including White House staffers, secretaries, stewardess, campaign workers, strippers, and acquaintances of trusted male friends. The FBI taped sounds of him and Inga Arvad making love.d
Teddy Roosevelt and his family could walk in stilts
  1. Every member of Teddy Roosevelt’s family owned a pair of stilts, including the first lady.k
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