recession or inflation,gearing portfolio

Leonidas said:
It was a lot more complicated than that, wasn’t it?

Our economy was starting to suck before the ‘73 embargo.  Under Tricky Dick Nixon the rate of inflation and unemployment doubled in a year before OPEC (or, as my econ professor called them, the O’PECkers) shut off the taps.  Our energy costs tripled overnight and nobody knew how to stop the bleeding.  It was like tossing hand grenades into a burning house, it was burning down anyway but was suddenly transformed into a conflagration that was spectacular.

To approximate the effect, imagine going to buy gas next week and seeing regular selling for $8.50 a gallon. 

I think that's about right. Kennedy and his successors decided to listen to the advisors saying that guns AND butter was possible (rather than guns OR butter), so they spent money on lots of domestic stuff and a prolonged war. The eventual result was an ugly inflationary environment. Sounds awfully familiar to today, except that some of the domestic spending has been replaced with tax cuts.
 
brewer12345 said:
I think that's about right.  Kennedy and his successors decided to listen to the advisors saying that guns AND butter was possible (rather than guns OR butter), so they spent money on lots of domestic stuff and a prolonged war.  The eventual result was an ugly inflationary environment.  Sounds awfully familiar to today, except that some of the domestic spending has been replaced with tax cuts.
good point on the tax cuts
 

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