Blackbeard , 6 months ago (edited 6 months ago)

First off, inflation doubled between 1965 and 1970, as it hit 5.5% in 1970. Then, the act was seen as “a political dare,” according to top Nixon official George Shultz — the Democrats thought Nixon wouldn’t use the powers they’d granted him, but he called their bluff. Republicans accused them of using it as an election year ploy to make it look like they were seriously fighting inflation. Democrats held Congress later that year, so in that way perhaps it helped, but they’d been in control since 1955, so their grip on power was pretty firm.

Nixon initially refused to use his authority, but then a year after the ESA’s passage inflation kept rising at a break-neck pace, and he started the Nixon Shock, which helped him get reelected with 520 electoral votes in 1972. So in that way, the pressures Nixon was facing were a lot like the pressures Biden’s currently facing. As it turns out, however, inflation kept rising through the mid 70s, and what was initially a political success, when paired with the 1973 oil crisis, quickly caused the 73-75 recession which was marred by stagflation. So it sounded good on paper, but wound up royally fucking the entire middle and working classes in multiple countries, as the unemployment rate nearly doubled.