In economic terms his administration is remembered as a complete failure. He had to respond to an inherited economic crisis characterized by stagflation, the unprecedented combination of stagnation and double-digit inflation. Stagflation was a direct consequence of the oil shocks of 1973 and 1979. The battle against stagflation entailed initial doubt about whether to prioritize inflation or unemployment and repeated policy failures before the adoption of an anti-inflation strategy. Carter announced his determination to make the conquest of inflation his chief economic priority in 1978 with a program that contained deregulation initiatives and budgetary restraints, including cuts into social programs. Despite his efforts against inflation, the inflation rate…show more content… Assisted by him, he implemented initiatives that were particularly punishing to the working class. These measures provoked tensions with the Democratic Party. Ted Kennedy and the tradition FDR coalition got extremely angry at him for his initiatives, becoming one of his major sources of opposition. His policies made him the subject of attack from liberal democrats for betraying the New Deal tradition of activist government to sustain high employment and strong economic growth. Also, African American leaders felt betrayed for what they called Carter’s immoral, unjust and inequitable budget cuts. However, Volcker’s initiatives ended up being effective, and after going through a period of recession in which unemployment rate jumped from 6% in August 1979 to 7.8% in 1980, Volcker conservative monetary policies helped the economy to get on the right direction, and he was appointed again by Reagan. Carter’s economic policy was considered to be a disaster during his presidency, but recently, it has been argued that his initiatives were essential for the posterior development of the US
