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February 22, 2008

Paul Krugman: Don’t Rerun That ’70s Show

Filed under: Commentary — Tags: , , , , , — Volt @ 1:55 am

Paul Krugman, The New York Times, February 22, 2008

Will the next president be the second coming of Jimmy Carter? Given Thursday’s economic headlines, full of dire warnings about the return of 1970s-style stagflation, you might think so.

Realistically, though, the parallels between the problems facing the U.S. economy now and those of the late-1970s aren’t that strong. That’s the good news.

The bad news is that the economy probably will look similar to, but worse than, the economy that undid the first President Bush. And it’s all too easy to see how the next president could suffer a political fate resembling that of both the elder Mr. Bush and Mr. Carter.

Let’s talk first about the Carter-era economy.

Jimmy Carter’s overall economic record was much better than most people realize — the average economic growth rate under his administration was 3.4 percent per year, slightly higher than the growth rate under Ronald Reagan and far better than growth under either Bush.

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