Economists are dustin’ off the oldies. They are issuing warnings of “Stagflation”. If I didn’t know better, I’d tell you to get vaccinated, but stagflation is an economic condition. Coined in the late 70’s-early 80’s, “Stagflation” was used to describe a condition where inflation rises rapidly while the economy slows rapidly.Economists are chanting this haunting tune in response to a barrage of bad economic news–housing prices plunged nearly 9 percent, the dollar sank (like a boulder) to a new low (1 USD:1,50 Euro), a 7.4 percent increase in energy costs, food and commodity prices spiked, the job market is officially abyssmal and consumer confidence fell to its lowest level in 3 years.Economists are saying that the only “treatment” for Stagflation is stimulating the economy, primarily by continuing to lower interest rates. But, even they must admit that that won’t immediately create more jobs, increase income or lower prices.Let’s hope that someone can come up with a bit of alternative medicine.Read: The Economy: A Mix of Bad News
Stuff You Might Also Like
If you liked my post, feel free to subscribe to my rss feeds
Loading ...
