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:
“The [nineteenth-century] young men who were Puritans in politics were anti-Puritans in literature. They were willing to die for the independence of Poland or the Manchester Fenians; and they relaxed their tension by voluptuous reading in Swinburne.”
—Rebecca West (1892–1983)
“The word “revolution” itself has become not only a dead relic of Leftism, but a key to the deadendedness of male politics: the “revolution” of a wheel which returns in the end to the same place; the “revolving door” of a politics which has “liberated” women only to use them, and only within the limits of male tolerance.”
—Adrienne Rich (b. 1929)