https://issuesinsights.com/2024/04/18/joe-bidens-economic-dunkirk/
Just after Ronald Reagan won the presidential election in November 1980, economic adviser David Stockman wrote a memo warning the president-elect that he faced an “economic Dunkirk” thanks to the disastrous economy he was inheriting.
Among Stockman’s warnings was that the Carter administration had set a “ticking regulatory time bomb” that would blow up the economy.
“They have spent the past four years ‘tooling up’ for implementation through a mind-boggling outpouring of rulemakings, interpretative guidelines, and major litigation – all heavily biased toward maximization of regulatory scope and burden,” Stockman wrote.
Stockman – who would later serve as head of the Office of Management and Budget and ended up losing Reagan’s trust – had that part wrong. While Carter was a disaster as president, at least he showed an ability to learn on the job. And so late in his term, Carter embarked on a deregulatory campaign to fight inflation. Among other things, he freed the trucking and airline industries from onerous government mandates.
“Carter gave Reagan the phenomenal gift of deregulation. Combined with the (Reagan) tax cuts that largely took effect in 1983, the economy went on a growth tear,” wrote Brian Domitrovic, a scholar at the Laffer Center, in Forbes. “All the capital that Reagan freed up via his tax cuts found room to roam in the deregulated world which Carter had set up.”