Changes

A major issue for President Carter failed to deal with was [[inflation]], caused especially by continued high levels of government spending and the rising price of imported oil, which was the major source of energy for many industries.  The Misery Index, Carter's own invention of economic well-being, rose 50% in four years.  

A major issue for President Carter failed to deal with was [[inflation]], caused especially by continued high levels of government spending and the rising price of imported oil, which was the major source of energy for many industries.  The Misery Index, Carter's own invention of economic well-being, rose 50% in four years.  

Government spending caused interest rates to rise to unprecedented levels (above 12 percent per year). Inflation and interest rates reached their highest levels since [[World War II]].  The rapid change in interest rates led to disintermediation of bank deposits, which sowed the seeds of the [[Savings and Loan crisis]]. Investments in fixed income were becoming less valuable. Holders of both bonds, and pensions being paid to retired people had their life savings wiped out.  The stagnant growth of the economy (causing unemployment), in combination with a high rate of inflation, has often been called [[stagflation]], an unprecedented situation in American economics.

Government spending caused interest rates to rise to unprecedented levels (above 12 percent per year). Inflation and interest rates reached their highest levels since [[World War II]].  The rapid change in interest rates led to disintermediation of bank deposits, which sowed the seeds of the [[Savings and Loan crisis]]. Perhaps more significant was deregulation of the Savings and Loan industry that was initiated late in the Carter administration and rapidly accelerated during the Reagan administration (see the Garn - St Germain Depository Institutions Act of 1982<REF>http://www.answers.com/topic/garn-st-germain-depository-institutions-act</REF>. Investments in fixed income were becoming less valuable. Holders of both bonds, and pensions being paid to retired people had their life savings wiped out.  The stagnant growth of the economy (causing unemployment), in combination with a high rate of inflation, has often been called [[stagflation]], an unprecedented situation in American economics.

[[Bert Lance]],  Carter's appointee to head the [[Office of Management and Budget]] which manages the U.S. federal budget, was forced to resign when his past bank overdrafts and "check kiting" schemes in Georgia were exposed.

[[Bert Lance]],  Carter's appointee to head the [[Office of Management and Budget]] which manages the U.S. federal budget, was forced to resign when his past bank overdrafts and "check kiting" schemes in Georgia were exposed.