Skip to comments.The Return of Stagflation
Posted on 05/30/2011 6:10:59 PM PDT by rabscuttle385
'Stagflation" is an ugly word for an ugly situation: persistent high inflation combined with high unemployment and stagnant demand in a country's economy. The term was coined by British politician Iain Mcleod in a speech to Parliament in 1965. We haven't experienced it here in the United States since the bad old days of the 1970s.
Yet with prices on the rise and unemployment still high, the U.S. economy again seems to be entering stagflation. April's producer price index for finished goods, which excludes services and falling home prices, rose 6.8%. The Bureau of Labor Statistics reports that intermediate goods prices for April were rising at a 9.4% annual clip. Meanwhile the official nationwide unemployment rate is mired close to 9%, without counting a large backlog of discouraged workers who are no longer officially in the labor force. So stagflation it is.
Although many forces buffet the U.S. economy, the near-zero interest rate policy of the Federal Reserve is the prime contributor to the current bout with stagflation.
(Excerpt) Read more at online.wsj.com ...
Heckuva job Baracky.
Darn that Bush!
Ahh, brings back memories of Jimmy Carter and late ‘70s stagflation.
In 1976, Carter invented the misery index, which was adding the rate of unemployment to the rate of inflation. Jimmy charged that President Ford was presiding over a ruinous misery index, and that anyone presiding over such terrible economic conditions had no right to even be running for president of the United States.
But in 1980, when Carter was presiding over a much higher misery index, suddenly that subject wasn’t talked about any more, and Carter felt he had every right to run for re-election that year.
I hate it when Democrats introduce certain criteria, like this misery index, and then when conditions or office holders change, suddenly those criteria don’t matter anymore.
Obama apologists have done something similar with the unemployment rate. Democrats attacked Bush when unemployment rates were between 5 and 6%. Now, with an unemployment rate far higher, now good Democrats say it doesn’t matter. Now, they talk about jobs saved, jobs created, and jobs related to the stimulus rather than the high unemployment rate.
Tune into any of the evening “news” shows on ABC, NBC, or CBS, a.k.a. the White House Press Office, and you’d think all is well. The recovery is well underway, jobs are popping up everywhere, and happy workers are regaining their confidence in the American economy.
I’d like to see them questioning people in the grocery stores who can’t afford to buy beef or eggs or milk anymore. There’s isn’t one food item that isn’t being affected. Does that imposter in the White House really think he deserves another term?
As another poster on another thread said: "You can hide the body for awhile, but you can't hide the smell". This BS will not work in six months.
The Democrats seem to always strive to wreck the US economy when they have control of the government.
In other news, Big Brother has increased the monthly chocolate ration to 20 grams (up from last month’s 28 grams). And in world news, Oceania is at war with Eastasia. We have always been at war with Eastasia.
Ahh, the Carter years. I remember them well...Will Disco make a comeback? Gee, I hope not.
I think it is becoming obvious to even most MSM water carriers (although it’s getting tougher to not admit it) that the economy is not recovering. The so called increases in sales are nothing more than less sales at higher costs because of inflation. Example: sales of coffee increased 100% over the last six months ... truth is that generic coffee went from $2.00 to $4.00 a pound. Did the retailers sell more, hence the continuing recovery, or was inflation the cause?
It’s going to be several times worse than the ‘70s. More QE is on the way. They won’t law off many government employees or close many offices, until it’s time to repudiate the debt, so they’re going to monetize time and again.
They wont lay off many government employees or close many offices, until its time to repudiate the debt,... [Little correction there.]
So that’s why Obama doesn’t release his birth certificate.
Son of Jimmuh Carter!
Haven't heard that term since Old What's-His-Face snuck out of town.
Carter was only an unintentional communist. (”Useful Idiot”)
I wonder if any Republican candidates will have the nerve to bring up Jimmy Carter’s “Misery Index” and how it compares to Obama’s?
Misery Index: inflation rate X unemployment rate.
Obama: 9.1 X 7.79 (last month’s rate annualized)= 71
Funny how we never hear about the misery index anymore...
ahh but Obama administration does not count such items for inflation calculations.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.