Page 181 - TrumpsEconEra_Flat

Trump’s Economic Era

Policy reversals of the 1970s resulted in
stagflation, a cycle of increasing prices and
unemployment. How did we get off this merry-go-
round? In 1980, Paul Volcker, the Chairman of the
Federal Reserve, decided to keep a tight rein on the
money supply. Mr.
Volcker became
Policy reversals were unpopular as the
common during the 1970s. economy experienced
a severe recession in
1980 and 1981—but
he refused to increase the money supply to combat
unemployment, and the price level eventually subsided.
Once he got a handle on the inflation problem, he was
able to concentrate on the unemployment problem, and
for the rest of the 1980s, with the help of President
Reagan’s supply-side economic policies, we
experienced prosperity and moderate prices.

SOLUTIONS

President Trump favors government stimuli for
such things as roads and bridges and military hardware.
This program will encourage manufacturing back to
America; it will help to bring back manufacturers who
have previously left the country for greener pastures
abroad. There will be an increase in investments if
President Trump succeeds in lowering taxes and
regulations. A big reason he signed the 1.3 trillion
dollar omnibus spending bill in March of 2018 was that
the legislation substantially increased the level of
spending for the military.
The 1974 Impoundment Act allows the president
to order the recission of specific funds, as long as

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