President Reagan’s popularity plunged along with Volcker’s. ![]() An effigy of Volcker was set aflame on the steps of the Capitol, and a union of bricklayers sent him bricks symbolizing houses they had been unable to build in the harsh credit environment.īy September 1981, the Dow was hovering below 850 and the economy was heading into a deep recession. The prime rate surged to 21.5 percent in December 1980 and would be above 18 percent for most of the following year. The Federal Reserve, led by Chairman Paul Volcker, was clamping down on the money supply in an all-out effort against double-digit inflation. Such bright spots were the exception, though. On December 12, Apple Computer went public, selling 4.6 million shares at $22 apiece in the largest stock offering since Ford Motor Company listed its shares in 1956. On October 14, 1980, Genentech became the first publicly traded biotech company, offering shares at $35 that soon surged to $89. ![]() Much as in the 1970s, having four digits on the Dow in front of the decimal point seemed like an invitation to take your modest gains and pull some money out of the market.Īnd yet, even in the decade’s early doldrums, there were signs of formidable potential in emerging technology industries. But it wouldn’t stay there long, and repeated rallies to just above 1,000 in 1981 were similarly short-lasting. The Dow, which had been gaining strength gradually in the months since its April 21 nadir of 759.13, ticked upward with the election, and then pushed to 1,000.17 on November 20, its first close above the 1,000 line in the 1980s. At an October 28 debate, Republican candidate Ronald Reagan asked voters: “Are you better off than you were four years ago?” A week later, Reagan defeated Democratic incumbent Jimmy Carter by 50.75 to 41.01 percent (independent John Anderson got much of the rest). ![]() As the November election approached, the misery index pushed above 20, a level not surpassed even in the troubled 1970s. The 1980 presidential campaign was shadowed by the “misery index,” a number combining rates for inflation and unemployment. From Bust to BoomThe decade’s inception had been less auspicious.
0 Comments
Leave a Reply. |