Presidents

Kennedy/Johnson (R)

• space program (k and J)

• The Vietnam War was good for the economy (K and J)

• Added Medicare and Medicaid to the Federal entitlement list (great society) (J)

Richard Nixon

• The Nixon shock

• closed the GOLD WINDOW - last time to money that was backed up by Gold (8/15/71)

• Currencies now freely float against the US DOLLAR

• 1 US = 1 CAD on 12/31/71

• 1 US = 1.61 CAD on 2/7/02

WAGE-Price Freeze: (R)

• with inflation flaring up with increased Vietnam War spending, Nixon ordered a 90-day wage and freeze

• RESULTS: The shelves became empty real fast as businesses who could not pass along costs just stopped making stuff

Gerald Ford

Jimmy Carter (R)

• Second oil shock

• Iran hostage crisis paralyzed the country

• Stagflation

• De-regulation

• Misery Index-combo of inflation and unemployment-that number reached 20%

  The Misery index

  Ford and Carter was highest

Ronald Reagan

• ‘REAGANOMICS”

• Tax cuts for business (supply-side economics)

• TRICKLE DOWN theory

• Deficits skyrocket because congress did not cut the budget