Do you ever get that feeling that when you look back at your life it is not a singular narrative, but a string of disjointed events that make absolutely no sense when strung together? A change happened sometime after Ronald Reagan’s presidency when empty consumerism became the point of the economy. Yet, I still remember when Fed Chairman Paul Volker, chomping his cigar at the beginning of Reagan’s presidential term raised interest rates to double digits topping out at 20%. The argument at the time was raising the fed funds rate was the only way to control inflation and that the related consequence of high unemployment was not too high. The theory was that business needed the relief so that they would have spare cash to invest again. Investment caused the economy to grow and whether workers had cash or not was inconsequential.
Everything New is Old Again
Everything New is Old Again
Everything New is Old Again
Do you ever get that feeling that when you look back at your life it is not a singular narrative, but a string of disjointed events that make absolutely no sense when strung together? A change happened sometime after Ronald Reagan’s presidency when empty consumerism became the point of the economy. Yet, I still remember when Fed Chairman Paul Volker, chomping his cigar at the beginning of Reagan’s presidential term raised interest rates to double digits topping out at 20%. The argument at the time was raising the fed funds rate was the only way to control inflation and that the related consequence of high unemployment was not too high. The theory was that business needed the relief so that they would have spare cash to invest again. Investment caused the economy to grow and whether workers had cash or not was inconsequential.