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posted 3 years ago by pkvi 3 years ago by pkvi +13 / -0
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– Mad_King_Kalak 3 points 3 years ago +3 / -0

1970s inflation was caused, primarily, by three things. The money supply increasing, the money supply increasing, and the money supply increasing.

More specifically, it was the printing of tons of $ to pay for the Great Society programs, much of which got doled out to lower income people almost like stimmies today. Second, the printing presses paying for the Vietnam War at the same time as the "war on poverty". Third, Nixon untethering us the gold standard.

It created a wage/price spiral upward. The only way they ended it, was raising the interest rate above the rate of inflation. The result was a short, sharp recession.

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– deleted 1 point 3 years ago +1 / -0
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– Mad_King_Kalak 1 point 3 years ago +1 / -0

Fuel shortages were caused by panic buying, and by the Arabs reducing what they pumped. OPEC is asshoe, basically. People panic bought, like the great ammo shortage of 2020. Because of the panic buying, gas stations did stuff like allow allow license plates with the last number being an even number buying certain days of the week, and odd numbers other days. Long lines still existed.

Supply chain issues in the 1970s were (mostly) caused by Nixon's wage and price controls. If you're not getting what you put into it, you refuse to take it to market. Once those wage/price controls were removed, not to mention Reagan's (and some under Carter) deregulation of the trucking and freight industries, then supply chain shortages disappeared.

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