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US economy 1968-89 - Coggle Diagram

- - - - Bretton Wood system abandoned (gold standard)
      - imports expensive; exports cheaper
      - Price and wage controls
    - - Cut spending; reduce takes 'Whip Inflation Now'
    - - Cut 'Waste'; increase spending elsewhere; Volcker
  - - - Tax cuts- boost consumer spending
      - Overall spending up leads to deficit increase- 1980 $73.8bn; 1985 $212.3bn- Defence spending raises overall spending- 1990- $221.2bn
      - Unemployment: 1982=10.8%; 1985=7.2%; 1990=5.6%
      - GDP grew- 3% p.a. 1989- 23% increase on 1980 economy by 1989.
      - Inflation: 1981- 14% reduced to 1989 4.65%