Dan Burton said "Well, Mr. Volcker, who is now back with this administration, he came in and started ratcheting up the interest rates to slow down the rate of inflation. Interest went up to 21.5 percent. And I had a business then. And we had to close our doors, because we couldn't sell real estate because nobody could afford to buy it at 21.5 percent interest. And so what happened was he ratcheted up the interest rate to slow down the rate of inflation. And he killed the economy. He absolutely killed it. And that is when Ronald Reagan was elected in 1980, and he came in with tax cuts which stimulated economic growth. And we had one of the longest periods of economic recovery in history." @ PoliticalQuotes.com

On the recordFebruary 11, 2009

Well, Mr. Volcker, who is now back with this administration, he came in and started ratcheting up the interest rates to slow down the rate of inflation. Interest went up to 21.5 percent. And I had a business then. And we had to close our doors, because we couldn't sell real estate because nobody could afford to buy it at 21.5 percent interest. And so what happened was he ratcheted up the interest rate to slow down the rate of inflation. And he killed the economy. He absolutely killed it. And that is when Ronald Reagan was elected in 1980, and he came in with tax cuts which stimulated economic growth. And we had one of the longest periods of economic recovery in history.

Said by

Dan Burton

Indiana

Source

govinfo.gov

Editor's note · Context

Discussing the impact of interest rates on the economy during the late 1970s and early 1980s.

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