This is from an article I wrote a few years back when inflation was nearing 10 percent. Carter by most standards was a failed president, but, most people reflecting on his life would also say he was one of the most well-intentioned and moral presidents the US has had. It brings up the idea that is a little scary, being a good president and being a good person can be two completely different things
In many circles, president Jimmy Carter is considered the worst US president of the modern era. From a monetary policy, he increased an already high inflation number and unemployment rose to extreme levels under his administration. He was defeated after only one term by Ronald Reagan. (Although the economy was a determining factor, giving away the Panama Canal, and the Iran hostage situation were a few other major reasons for his early departure.)
Why am I bringing up a president from over four decades ago? You probably already know if you are buying anything lately, inflation has been reaching record numbers. The comparison everyone is making is to the late 70's, under Carter. So what brought us out of this tough period in the US economy? Well, Carter wasn't all bad. In fact, he made a decision, that in the short run almost certainly cemented his loss in the next election and made a recession and higher unemployment a certainty. What did he do? He hired Paul Volcker to head up the Federal Reserve. Volcker quickly raised the interest rate to almost 20 percent, this highest in in US history. In fact, this increase did not cause just one recession, but, two before it was over. Unemployment reached 10.8 percent. It was until the early to mid 1980s that the economy was back on track and the interest rate settled under 5 percent. Carter was long gone by then and his place in history was set in stone. But...it was the only realistic way to reverse the inflation movement and Carter was willing to do it to stop what could have ruined our economy.
(One side note, if you think this is coming from a political view, it is not. Republican Nixon had a huge impact on how the federal government could spend money by removing us from the gold standard a few years before this, a tough decision needed to be made and he chose the easy way out and we are still paying the price for this. We should be wary of all politicians who make decisions that will have poor impacts not seen until after there public life is over.)
Full disclosure, I am from Jimmy Carter's home state and consider the work he has done after his presidency to be some of the greatest humanitarian work the country has ever seen. He has spent the last 40 years making up for four years in the White House.
