The recent push by MAGA Republicans to rehabilitate Richard Nixon’s reputation ignores his damaging economic legacy. Nixon’s 1971 'Nixon shock' ended dollar-gold convertibility, paving the way for fiat currency and inflationary pressures. His attacks on the Federal Reserve and removal of currency discipline fueled rising global debt.
Today, with US debt near WWII levels, governments may resort to debt monetisation or financial repression. Nixon also expanded the state through the EPA and OSHA, while his financial deregulation foreshadowed modern crises. His Watergate scandal remains a political liability, especially amid current corruption concerns.
Source: Financial Times Markets · Summarized by HeadlinesBriefing