Who are the winner and losers from inflation . The primary responsibility r controlling inflation rests with the National Administration. Finally, in the 1970s, the government was pushed to take drastic action. What was the result . Rising prices became a fact of life despite the clamor to do something about it. Inflation how did the spiral begin . With economic analyst richard gill, well explore that on this edition of economics usa. Im david schoumacher. What is inflation . Here at the bureau of labor statistics, they measure inflation, in a sense, with the Consumer Price index, totaling the costs of goods and services, then comparing them from month to month and year to year. Inflation has affected everybody. Some look back nostalgically to the threecent postage stamp. When prices go up a little, were not surprised. But when they get out of hand, we take notice, as we did in the late 1960s when prices began spiraling upward. What caused that spiral . As the country grew in the 1950s
Erg media [chanting] 1979. While americans stewed in gas lines, congress argued over what to do with 150 million acres of alaskan land. Which would we choose . Wilderness or Mineral Development . In 1939, one american in six was unemployed. By 1942, we were fighting a great war and living better than we had in years. How did we increase production of both guns and butter during world war ii . In 1978, a troubled textile industry was told to spend 2 billion combating brownlung disease. By 1980, the Supreme Court was asked to choose between saving lives or jobs and profits. How much is a life worth . Wilderness or minerals . Guns or butter . Jobs or safety . We always face choices. Resources and scarcity. Whats economics all about . With the help of economic analyst richard gill, well examine that question on economics usa. Im david schoumacher. Whats economics all about . There have always been theoretical answers to that question, but reality complicates the most elegant theories. Econ
Ox . Tnnogngngonon annenberg media annenberg media world war ii was over. The gis were home raising the roof, hoping to raise a family. How could they realize the American Dream, a home of their own . When foreign steelmakers were pricing americas largest steel mills out of the market, how could a minimill hope to compete . Baseball. For millions, a pastime. For a few, a paycheck. Why was this mans paycheck half a Million Dollars a year . A visit to a modern Shopping Center yields a bewildering display of goods and services, the products of a free market. Whos to say this is what we want or what we need . Markets do they meet our needs . Economic analyst richard gill will help us examine that question on economics usa. Im david schoumacher. The American Economy the sum total of what goes on in shopping malls, car dealers, supermarkets, stock exchanges, 7elevens, and gas stations all around the country. Millions of buyandsell decisions everday, trillions of dollars worth every year.
Annenberg media 1931. The Great Depression. Banks were failing by thousands. The Federal Reserve, created to prevent suca tragedy, only made things worse. What had gone wrong . 1951, during the korean conflict, president truman also faced another battle, between the Federal Reserve and the treasu, over financing the war. How would it be resolved . 1965, Lyndon Johnsons administration was spending on both a war and a greasociety 1965, Lyndon Johnsons admiwithout raising taxes. G the fed was left to fight the resulting inflation alone. The nations central bank, originally created to protect the Banking System against panics, acquired more power to affect the economy than even it imagined at the outset. The Federal Reserve does money matter . With the help of economic analyst richard gill, well explore that question on economics usa. Im david schoumacher. Coins, bilchecks our basic money supply. The amount of money and where it goes wiin the bankingysm has enhe main concern of our nations
By 1985, the economy appeared to be slowing down, and economists were still asking what to do about the next recession. Activist theories of fiscal and Monetary Policy have dominated economics since the depression. By the mid1980s we were doubting our ability to manage the economy. Stabilization policy are we still in control . Well investigate that with economic analyst richard gills help on this edition of economics usa. Im david schoumacher. For many years after the Great Depression National Economic policys basic goal was minimizing unemployment. But the winter of 1982 saw 12 million unemployed. Many complained they were victims of a needlessly cruel government policy. Public enemy number one was inflation, and jobless workers were the war casualties. The battle cast new doubt on the governments ability to manage the economy or the wisdom of even trying. Why was stopping inflation so hard . The time has come for Decisive Action to break the vicious circle of spiraling prices and co