Politics
Generally an administration gets credit or blame for the state of economy during its time. This has caused disagreements about when a recession actually started. In an economic cycle, a downturn can be considered a consequence of an expansion reaching an unsustainable state, and is corrected by a brief decline. Thus it is not easy to isolate the causes of specific phases of the cycle.
The 1981 recession is thought to have been caused by the tight-money policy adopted by Paul Volcker, chairman of the Federal Reserve Board, before Ronald Reagan took office. Reagan supported that policy. Economist Walter Heller, chairman of the Council of Economic Advisers in the 1960s, said that "I call it a Reagan-Volcker-Carter recession. The resulting taming of inflation did, however, set the stage for a robust growth period during Reagan's administration.
Economists usually teach that to some degree recession is unavoidable, and its causes are not well understood. Consequently, modern government administrations attempt to take steps, also not agreed upon, to soften a recession.
Read more about this topic: Downturn
Famous quotes containing the word politics:
“I played by the rules of politics as I found them.”
—Richard M. Nixon (1913–1995)
“Politics is repetition. It is not change. Change is something beyond what we call politics. Change is the essence politics is supposed to be the means to bring into being.”
—Kate Millett (b. 1934)
“Our democracy, our culture, our whole way of life is a spectacular triumph of the blah. Why not have a political convention without politics to nominate a leader who’s out in front of nobody?... Maybe our national mindlessness is the very thing that keeps us from turning into one of those smelly European countries full of pseudo-reds and crypto-fascists and greens who dress like forest elves.”
—P.J. (Patrick Jake)