G. William Miller
G. William Miller | |
---|---|
65th United States Secretary of the Treasury | |
In office August 6, 1979 – January 20, 1981 | |
President | Jimmy Carter |
Preceded by | W. Michael Blumenthal |
Succeeded by | Donald Regan |
11th Chairman of the Federal Reserve | |
In office March 8, 1978 – August 6, 1979 | |
President | Jimmy Carter |
Deputy | Stephen Gardner Frederick H. Schultz |
Preceded by | Arthur F. Burns |
Succeeded by | Paul Volcker |
Member of the Federal Reserve Board of Governors | |
In office March 8, 1978 – August 6, 1979 | |
President | Jimmy Carter |
Preceded by | David Lilly |
Succeeded by | Paul Volcker |
Personal details | |
Born | George William Miller March 9, 1925 Sapulpa, Oklahoma, U.S. |
Died | March 17, 2006 Washington, D.C., U.S. | (aged 81)
Political party | Democratic |
Spouse | Ariadna Rogojarsky |
Education | Amarillo College United States Coast Guard Academy (BS) University of California, Berkeley (LLB) |
Military service | |
Allegiance | United States |
Branch/service | United States Coast Guard |
Years of service | 1945–1949 |
George William Miller (March 9, 1925 – March 17, 2006) was an American businessman and investment banker who served as the 65th
President Jimmy Carter nominated him to succeed Arthur F. Burns as chairman of the Federal Reserve in 1978. Miller came from a corporate world, rather than from economics or finance, an unusual background for a central bank chairman. However, shortly after his appointment, Miller left the Board of Governors to take position of treasury secretary in the Carter administration, when W. Michael Blumenthal resigned. New York Fed President Paul Volcker was chosen as his successor at the Fed.
Early life and career
George William Miller was born in
After leaving the Coast Guard, Miller enrolled in the
In 1956, Miller joined the rapidly growing Rhode Island-based conglomerate Textron, Inc as an assistant secretary.[6] He became a vice president of the company in 1957, CFO in 1958, and both the COO and company president in 1960.[3][6][8] In the following years, Textron's sales boomed across a range of consumer goods, industrial equipment, and aerospace products. He became Textron's CEO in 1968 and retained that role following his 1974 election as chairman of Textron's board of directors. He held these posts until he joined to the Federal Reserve Board.[6] Despite the economy's weakening state during his time as CEO, Textron's sales grew 65% to $2.8bn as the company operated 180 plants worldwide. This allowed the company's sales and net income to keep pace with the decade's accelerating inflation (albeit with a temporary dip in inflation-adjusted net income during the 1973-75 recession).[9][10][11]
In Providence, Miller was active in the Central Congregational Church.[12]
Miller also forayed into politics and public service.
At the time he joined the Washington-based Federal Reserve Board of Governors in 1978, Miller had been a Class B director of the Federal Reserve Bank of Boston for about eight years (Textron's headquarters is in the Boston Fed's district), and he was on the board of several corporations. He was also a member of the Business Council and the Business Roundtable, and he was Chairman of both the Conference Board and the National Alliance of Businessmen. He also served on two bilateral international economic councils: the US-USSR Trade and Economic Council and the Polish-US Economic Council.[6][15][16]
Federal Reserve Chairman
When President
In anticipation of the end of Burns's term as Fed chairman in March 1978, President Carter announced in December 1977 that Miller was his nominee to replace Burns.[8][21] The announcement received lukewarm reception as US markets slightly worsened, media coverage expressed uncertainty about the relatively unknown nominee's views, and economists' reactions varied.[25] In this context, Miller sat before the United States Senate Committee on Banking, Housing, and Urban Affairs for the first-ever confirmation hearings for a Federal Reserve chairman. Up until this time, the Senate had questioned and voted on the president's nominees to the Board of Governors while the US president selected the chairman and vice chairman.[26] Some senators were reserved about Miller and challenged his qualifications, and the questions covered a host of issues like Miller's views of the Federal Reserve's independence. Miller voiced support for and belief in the Fed's independence, which (based on Miller's different Senate testimonies) is a position he held before and after his time as the Federal Reserve Chair.[6][27][28] Allegations against both Textron and Miller's actions as its leader spurred the committee to investigate the company. Following what one senator called the "most detailed nomination hearings" he had ever seen, Miller was vindicated and unanimously approved by the Senate.[27][26]
Miller succeeded
During Miller's tenure (and arguably in large part due to Miller's preferred policies), the
Miller's restraint in fighting inflation caused distress among members of the Carter Administration itself. Treasury Secretary Blumenthal, Inflation Adviser
Miller's manner of running the Fed did not endear him to his peers or outside observers. Miller was not perceived as having great prestige; not coming from an economics or Wall Street background, he was seen as an "outsider."
Economic historians have generally considered Miller's short tenure unsuccessful. The high inflation that Miller did not rein in required harsh "shock therapy" treatment by his successor, Paul Volcker, to bring inflation under control. That action sent the U.S. economy into recession from 1980 to 1982. Steven Beckner, a Federal Reserve analyst, offered a particularly harsh assessment:
Under Arthur Burns, who chaired the Fed from 1970 to 1978, and under G. William Miller, who was chairman from January 1978 [Note: obviously an error from Beckner since Miller began in March] to August 1979, the Fed provided the monetary fuel for an inflation that began as a flicker and grew into a fearsome blaze... If Nixon appointee Burns lit the fire, Miller poured gasoline on it during the administration of President Jimmy Carter. Without question the most partisan and least respected chairman in the Fed's history, this former Textron executive worked in tandem with fellow Carter appointee, Treasury Secretary W. Michael Blumenthal, in pursuit of monetary policies that were expansionist domestically and devaluationist internationally. The goals were to spur employment and exports, with little thought to the dollar's value. By early 1980, inflation was running at 14 percent per year.[36]
— Steven Beckner, Back from the Brink: The Greenspan Years
Treasury Secretary
Miller was Fed chairman for just over a year when Carter appointed him Secretary of the Treasury in August 1979, replacing
Miller is also known for managing the freezing and partial unfreezing of $12 billion in Iranian funds held in the United States during the
Miller's economic policies failed to contain inflation and had little impact on rising unemployment rates. The poor state of the economy was a major factor in Carter's 1980 defeat by Ronald Reagan.
Later years
After Carter's administration ended, Miller founded G. William Miller & Co., a Washington private investment company that he likened to a discreet, Swiss-style merchant bank.
George William Miller died on March 17, 2006, from idiopathic pulmonary fibrosis, a lung condition, at the age of 81.[7]
References
- Department of the Treasury Resignation of W. Michael Blumenthal and Nomination of G. William Miller To Be Secretary. July 19, 1979, American Reference Library
- ^ "William Who? Textron Chief to Head Federal Reserve Board in a Surprise Selection". Wall Street Journal. 1977-12-29.
- ^ 1930 United States Federal Census
- ^ a b c d e f g McFadden, Robert D. (2006-03-19). "Obituary: G. William Miller". The New York Times. Retrieved 2014-04-01.
- ^ 1930 and 1940 United States Federal Censuses
- ^ "Amarillo College Foundation - Amarillo College Foundation".
- ^ a b c d e f g h Nomination of G. William Miller : hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, Ninety-fifth Congress, second session, on the nomination of G. William Miller to be Chairman of the Board of Governors of the Federal Reserve Board, January 24, 1978. Hathi Trust Digital Library. 1978.
- ^ a b c d Bernstein, Adam (2006-03-20). "Obituary: Fed Chairman G. William Miller, 81". The Washington Post. Retrieved 2007-11-21.
- ^ a b "William Who?: Textron Chief to Head Federal Reserve Board In a Surprise Selection". The Wall Street Journal. 1977-12-29.
- ^ "Digest of Earnings Reports". The Wall Street Journal. 1969-01-29.
- ^ "Digest of Corporate Earnings Reports". The Wall Street Journal. 1978-02-16.
- ^ Farnsworth, Clyde (1977-12-29). "Burns Is Out as Chief of Fed; Carter Names Miller, Textron Head".
- ^ Gibson, Raymond (1992). Ministry Recalled: The Central Years. Monadnock Publishers.
- ^ "G. William Miller: A Guide to His Papers at the Jimmy Carter Library, Collection Summary" (PDF). Jimmy Carter Presidential Library and Museum.
- ^ ISBN 9780226519999.
- ^ a b "G. William Miller (1979-1981)". Retrieved 2014-03-01.
- ^ Annual Report, 61st ed. St. Louis Fed (Report). Board of Governors of the Federal Reserve System. Retrieved 2018-09-13.
- ^ ISBN 9780374280994.
- ^ Farnsworth, Clyde H. (1977-12-29). "Burns in Out as Chief of Fed; Carter Names Miller, Textron Head". New York Times.
- ^ "125 Influential People and Ideas: Reginald H. Jones". Wharton Alumni Magazine. Wharton School of Business, University of Pennsylvania. Archived from the original on 2011-06-10. Retrieved 2014-03-06.
- ^ Deutsch, Claudia H. (2001-09-15). "Irving S. Shapiro, 85, Lawyer and Ex-Chairman of DePont". New York Times. Retrieved 2014-03-06.
- ^ a b "Volcker and Roosa Praise Nominee". New York Times. 1977-12-29.
- ^ MacLaury, Bruce K. (1992-11-05). "Interview with Bruce K MacLaury, President of the Federal Reserve Bank of Minneapolis, 1971-1976" (Interview). Interviewed by James E. Fogerty. Federal Reserve Bank of Minneapolis. Retrieved 2018-06-28.
- ^ Greider, William (1987). Secrets of the Temple: How the Federal Reserve Runs the Country. Simon and Schuster. pp. 34, 45.
- ^ "Jimmy Carter Presidential Daily Diary, Year of 1977" (PDF). Jimmy Carter Presidential Library and Museum. 1977-12-27.
- ^ Scott-Stokes, Henry (1977-12-30). "Reactions Vary for Economists on Fed Change: Economists Express Pleasure and Regret at Dismissal of Burns". New York Times.
- ^ a b "Factbox: History of Senate Votes for Fed Chairman". Reuters. 2010-01-25.
- ^ a b c Continuation of the nomination of G. William Miller : hearings before the Committee on Banking, Housing, and Urban Affairs, United States Senate, Ninety-fifth Congress, second session ... February 27 and 28, 1978. Hathi Trust Digital Library. 1978. pp. 65, 188, 219–20.
- ^ Nomination of G. William Miller : hearing before the Committee on Finance, United States Senate, Ninety-sixth Congress, first session on the nomination of G. William Miller to be Secretary of the Treasury, July 27, 1979. Hathi Trust Digital Library. 1979. pp. 6–7, 39.
- ^ Consumer Prince Index, from the Department of Labor
- ^ Miller, G. William (1978-06-07). Remarks at the National Press Club (Speech). St. Louis Fed. Retrieved 2018-06-27.
- ISBN 9780870945441.
- )
- ^ Miller, G. William (1978-12-12). "New Directions in U.S. Economic Policy". Statements and Speeches of G. William Miller, 1978-1979. St. Louis Fed. p. 13.
- ^ Rowen, Hobart (1978-11-26). "Miller Resisting Overkill Policy: Miller Presumes Ability to Fine-Tune Economy". Washington Post.
- ^ "Record of Policy Actions: November 21, 1978" (PDF). Federal Open Market Committee. 1978-11-21. Retrieved 2007-11-29.
- ^ ISBN 0-471-16127-6.
- ^ "The Squeeze of '79". Time. 1979-10-22. Archived from the original on June 11, 2010. Retrieved 2007-11-27.
- ^ Miller, G. William (1978-07-19). "New Directions: Strategy for Economic Progress - July 19, 1979". Statements and Speeches of G. William Miller, 1978-1979. St. Louis Fed. p. 3.
- ^ "The Fed vs. Jimmy's Aides". Time. 1979-04-30. Archived from the original on October 15, 2010. Retrieved 2007-12-06.
- ^ a b Belden, Susan. Policy preferences of FOMC members as revealed by dissenting votes
- ^ "After Alan". The Economist. 2005-08-13. Retrieved 2007-11-16. The order of the sentence is reversed for clarity here.
- ^ a b Santow, Leonard J. (2009). "Do They Walk on Water?: Federal Reserve Chairmen and the Fed". ABC-CLIO: 89–90.
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(help) - ^ "Carter's Great Purge". Time. 1979-07-30. Archived from the original on August 22, 2009. Retrieved 2007-12-06.
Further reading
- ISBN 978-0226213514.