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How Nixon Stopped Inflation With Price Freezes That Helped The Poor
An alternative to raising interest rates
President Nixon is an interesting figure for many reasons. He is notorious for the Watergate scandal, but there was far more to him than that.
For example, despite being a Republican, it was under his watch that the EPA was created. He began withdrawal of troops from Vietnam, and his trip to Communist China changed the world.
He was also a standout when it comes to being an inflation fighter, which he did by working with Democrats to come up with a solution that minimized pain to the poor and working classes.
The way Nixon tackled inflation provides perspective as we again face rising prices.
Consumers today are hurting as the price of eggs, meat, gas, and other essentials continue to rise. According to the Labor Department, the Consumer Price Index (CPI) rose 6% from a year ago in February.
In response to inflation concerns, the Federal Reserve raised interest rates for the ninth time in a row in March. They now hover just under 5%.
While this may curb inflation, it also makes it harder for people to service credit card debt, finance new auto or home loans, and makes it harder for small businesses to expand.
