Friday, June 14, 2019

US Inflation History by Year


When inflation is high due to wars, government overspending and high consumer demand, prices increase. Interest rates were high along with high inflation in the 1960s, 1970s and 1980s. When interest rates settled down under 7% in the 1980s, investors went to stocks.

When interest rates are higher than stock returns, Investors move to fixed investments like mortgages.

In the 1930s, inflation fell to a negative (-18.6%). Asset prices dropped. Farmers lost their farms in the Dust Bowl. Workers lost their jobs and businesses closed. 

The stock market crash in 1929 should have been met with lower loan rates and infusions of cash from the Federal Reserve to save Banks.

1929 0.6%
1930 -6.4% Depression
1931 -9.3%
1932 -10.3%
1933 0.8% Roosevelt
1934 1.5%
1935 3.0%
1936 1.4%
1937 2.9%
1938 -2.8%
1939 0.0%

In the 1940s inflation rose 54.9%

1940 0.7%
1941 9.9% WWII
1942 9.0% WWII
1943 3.0%
1944 2.3%
1945 2.2%
1946 18.1% High Demand
1947 8.8%
1948 3.0%
1949 -2.1%

In the 1950s inflation rose 23.5%
1950 5.9%
1951 6.0%
1952 0.8% Eisenhower
1953 0.7%
1954 -0.7%
1955 1.4%
1956 3.0%
1957 2.9%
1958 1.8%
1959 1.7%

In the 1960s inflation rose 25.3%
1960 1.4% Kennedy
1961 0.7%
1962 1.3%
1963 1.6%
1964 1.0% Johnson
1965 1.9%
1966 3.5%
1967 3.0%
1968 4.7% Nixon
1969 6.2%

In the 1970s inflation rose 74.1%
1970 5.6%
1971 3.3%
1972 3.4%
1973 8.7%
1974 12.3%
1975 6.9%
1976 4.9%
1977 6.7% Carter
1978 9.0%
1979 13.3%

In the 1980s inflation rose by 48.5%
1980 12.5%
1981 8.9% Reagan
1982 3.8%
1983 3.8%
1984 3.9%
1985 3.9%
1986 1.1%
1987 4.4%
1988 5.5%
1989 4.6% Bush I

In the 1990s inflation rose by 28.3%
1990 6.1%
1991 3.1
1992 2.9%
1993 2.7% Clinton
1994 2.7%
1995 2.5%
1996 2.3%
1997 1.7%
1998 1.6%
1999 2.7%

In the 2000s inflation rose by 25.4%
2000 3.4% Bush II
2001 1.6%
2002 2.4%
2003 1.9%
2004 3.3%
2005 3.4%
2006 2.5%
2007 4.1%
2008 0.1%
2009 2.7% Obama

In the 2010s inflation rose by 17.1%
2010 1.5%
2011 3.0%
2012 1.7%
2013 1.5%
2014 0.8%
2015 0.7%
2016 2.1%
2017 2.1%
2018 1.9% Trump
2019 1.8%


Healthcare and Education costs quadrupled because they were over-subsidized by government and consumers could not control the prices.

Norb Leahy, Dunwoody GA Tea Party Leader


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