Inflation cure

As the government continues to spend, the fear of inflation lurks in the background. Going back to the Carter days of stagflation when the inflation rate hit 13% and interest rates hit 21% what did the government do. Reagan came in and cut government spending and cut income tax. Within a few years inflation was tamed but it was a tough couple of years. After that followed 20 years of economic growth with low unemployment. Can this approach work again? 20 million new jobs were created Inflation dropped from 13.5% in 1980 to 4.1% by 1988 Unemployment fell from 7.6% to 5.5% Net worth of families earning between $20,000 and $50,000 annually grew by 27% Real gross national product rose 26% The prime interest rate was slashed by more than half, from an unprecedented 21.5% in January 1981 to 10% in August 1988 The price paid for this growth was the national debt nearly tripled going from $738 billion to $2.1 trillion. Reagan made three promises. He would grow the economy, build up the military and balance the budget. He did the first two but went down in flames on the debt.