26 January 2010

Samuelson on Inflation and partisan politics three decades ago

"We tend to get our recessions during Republican administrations...The difference between the Democrats and the Republicans is the difference in their constituencies. It's class difference... the Democrats constitute the people, by and large, who are around median inomes or below. These are ones whom the Republicans want to pau the price and burden of fighting inflation. The Democrats [are] willing to run with some inflation [to increase employment]; the Republicans are not"

Source: Samuelson P. A. (1977) Some Dilemmas of Econonmic Policy. Challenge 20: 30-31

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