Did you see the Wall Street Journal on August 2nd? In an article titled “Lessons From the Great Inflation of 1973-81,” authors Phil Gramm and Mike Solon discuss the upsurge in federal spending that started in 1965, funding the war in Vietnam and the War on Poverty, ultimately leading to the runaway inflation of the 1970s. In the article, the authors cite the efforts of former President Ronald Reagan in cutting federal spending, cutting taxes, and deregulation as the road to lower inflation and a more prosperous economy, a road we traveled for decades. In their view, the current policies—which raise taxes, increase spending, and enhance regulation—are speedbumps and roadblocks and will impede traffic on this road for many years to come.
Interested in more about inflation and the 1970s variant, stagflation? T&H Lemont has begun a series of blogs to address these issues and others pertinent to manufacturers in the transpandemic era. The first three address petroleum pricing, inflation, and stagflation, with more topics to come. https://lnkd.in/gUgF-vjT