In 1980, Ronald Reagan won the presidency by convincing people that America could not stand four more years of President Jimmy Carter’s economic policies, though in fairness the problem started in the Nixon and Ford administrations. It would be solved by a combination of higher interest rates and then pro-growth policies that renewed Americans’ faith in their country and in a future for their kids.
Next week the Federal Reserve will again decide whether they will raise interest rates 0.75 percent or begin to moderate its policies. By the Fed’s own estimates, their policies, if carried out will cost about 1.5 million Americans their jobs. An unelected body of economists will make the decision on whether to cost people jobs or save retirees’ nest eggs. It’s like chemotherapy for the economy – it may work, but at a difficult cost.
