Nixon’s Pressure Cooker

by Elaine Schwartz    •    Jan 17, 2010    •    1058 Views

Just an interesting fact:
Hearing that President Obama was concerned about preempting the sixth season premiere of “Lost”, I remembered that Richard Nixon had a similar situation.
In 1971, when the inflation rate had reached 5.7%, he decided to impose wage and price controls and scheduled the speech explaining the program for a Sunday evening. Although Nixon and his advisors were worried that they would push “Bonanza” (does anyone remember Hoss and Little Joe?) off the air that evening, they proceeded because he had to announce the decision before the financial markets opened on Monday morning.
A note:
The economy had a “pressure cooker” reaction to Nixon’s economic policy. Inflation dropped during the controls and then skyrocketed to 11 percent when the lid was lifted during 1974.

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