What Was The Economic Situation Like When President Jimmy Carter Came To Power?

Jimmy Carter came to power when the economy was not doing well at all. The specifics were that production growth had reduced to less than one percent; this was opposed to 3.2 percent that was seen during the 1960s. The deficit in the Federal Budget had exceeded 66 billion dollars. Interest rates were also high due to a number of factors and the period was referred to as one of stagflation. In other words inflation was rising but the economy was stagnating. The Government had borrowed extensively for unproductive activities such as the stockpiling of nuclear weapons and the Vietnam War and this further resulted in interest rates to remain high. The Nixon administration had also seen the prices of energy rise with OPEC members reducing supply of oil in the World Market. And the Energy Crisis was just getting started.