It's THE Economy Stupid!

Updated: Mar 22, 2021

In 1971, the unemployment and inflation rates in the United States reached 6.1% and 5.84% respectively. For our nation’s 37th president Richard Nixon, those numbers were only part of the problem.

The Civil Rights protests of the early and mid-60’s morphed into the anti-war protests of the 1970’s without missing a beat.

Nixon understood that combined, these issues would sink his chances of being re-elected in 1972.

With his Operation Menu expanding the killing in Vietnam across the border into Cambodia, Nixon had little interest in helping his re-election chances by ending the unpopular war in Vietnam.

Action on the nation’s race-related issues would also wait. Richard Nixon was a hate-filled man who believed in a hierarchy of races with whites at the top and African-Americans towards the bottom.

It’s THE Economy Stupid!

By executive order, Richard Nixon bold actions to revive the struggling economy. To combat inflation, he froze wages and prices for 90-days. Then to stabilize the dollar, he placed a 10% tariff on every item imported into the United States.

And Nixon was just warming up!

The boldest action in the series of economic measures which history refers to as “THE Nixon Shock” saved for last!

In an effort to keep Americans insulated from the effects of international financial crises which were common at the time, Nixon ordered his Secretary of the Treasury John Connolly to suspend the ability of foreign nations to convert their dollars into gold and thus removing the United States from the gold standard.

Those combined actions were Nixon’s strategy to calm the American people and return them to prosperity.