1979 Jimmy Carter - Anti-Inflation Program

In the 1970s, the stock market was in a 18-month bear market, eventually losing 40%, economic growth was weak, and easy-money policies of the American central bank was causing high inflation.   From the period of 1974 through 1981, the inflation rate often hovered in the double digits, going as high as 14.4% in 1980.   On October 24, 1978, President Jimmy Carter announced his Anti-Inflation Program on national television.  To fight inflation, Jimmy Carter promised to "hold down government spending, reduce the budget deficit, and eliminate government waste."   Furthermore, he promised to slash federal hiring, cut the federal workforce, encourage competition in the economy, and eliminate needless regulations.  It sounded much like the Republican party platform of the 2015, except for one more.   President Carter added, "we will oppose any further reduction in Federal income taxes until we have convincing prospects that inflation will be controlled." 

A few months later in President Jimmy Carter's 1979 state of the union address, he recalled the speech he gave in October, and urged congress to their part in supporting his  Anti-Inflation program.  

"Three months ago, I outlined to the Nation a balanced anti-inflation program that couples responsible government restraint with responsible wage and price restraint. It's based upon my knowledge that there is a more powerful force than government compulsion—the force created by the cooperative efforts of millions of Americans working toward a common goal.

Business and labor have been increasingly supportive. It's imperative that we in government do our part. We must stop excessive government growth, and we must control government spending habits. "

Carter's anti-inflation program did not have immediate impact,   inflation continued to rise after 1978 through the end of his administration.   It wasn't until the economy began to recover in 1981 and the Carter's Chairman of the Board Paul Volcker began to tighten the money supply, that inflation began to fall.  Whether it was Carter's anti-inflation program or Reagan's Economic Recovery Tax act that should get credit is beyond the scope of this post.   Republicans and Democrats will forever debate it.

http://www.pbs.org/wgbh/americanexperience/features/primary-resources/carter-anti-inflation/

http://www.investopedia.com/articles/economics/09/1970s-great-inflation.asp

http://www.usinflationcalculator.com/inflation/historical-inflation-rates/

http://www.huppi.com/kangaroo/L-carterreagan.htm

http://pastdaily.com/2012/10/30/taking-a-crack-at-inflation-october-30-1978/

http://s304.photobucket.com/user/dragon5616/media/jimmy-carter.jpg.html