Will The Fed Repeat 1970's Policy Mistakes?

Last month, the Federal Reserve lowered interest rates just in time for the election. But beyond November, many economists fear that we could be heading for a repeat of the same mistakes the Fed made in the 1970's.

"Bad decisions then, seem to be reminiscent or very similar to what we are seeing today" said Texas based economist, Dr. Vance Ginn, "And my concern is, is that we may repeat those past failed mistakes of the 1970's and see inflation go up even higher because they're not taking the necessary steps to bring down inflation."

So what are those bad decisions? Basically taking their foot off the brake, and hitting the gas too fast.

"When they pushed back on the gas (in the 1970's) with all of this money creation throughout the economy, that pushed inflation back up" Ginn told KTRH, "In fact, inflation went up higher and then we had a double-dip recession after that."

The reality is, we are at a critical moment for the economy.


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