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: Contraction (economics)
Famous quotes containing the word politics:
“The average Kentuckian may appear a bit confused in his knowledge of history, but he is firmly certain about current politics. Kentucky cannot claim first place in political importance, but it tops the list in its keen enjoyment of politics for its own sake. It takes the average Kentuckian only a matter of moments to dispose of the weather and personal helath, but he never tires of a political discussion.”
—For the State of Kentucky, U.S. public relief program (1935-1943)
“There is a place where we are always alone with our own mortality, where we must simply have something greater than ourselves to hold onto—God or history or politics or literature or a belief in the healing power of love, or even righteous anger.... A reason to believe, a way to take the world by the throat and insist that there is more to this life than we have ever imagined.”
—Dorothy Allison (b. 1949)
“The politics of the exile are fever,
revenge, daydream,
theater of the aging convalescent.
You wait in the wings and rehearse.
You wait and wait.”
—Marge Piercy (b. 1936)