The Dreaded "S" Word: Is it Back?
By John Persinos
Remember the 1970s? Writer Tom Wolfe coined the term "Me Decade" to describe those years of disillusionment and narcissism. It was an era known for annoying music (disco), tacky clothing (polyester leisure suits), and an economic vise called "stagflation."
Stagflation describes a combination of stagnant economic growth and rising inflation. It's the worst of both worlds.
America's "Great Inflation" reached a peak of more than 14% in 1980. It took cigar-chomping Federal Reserve Chair Paul Volcker and his draconian interest rate hikes during the early 1980s to finally curb inflation. The cost of Volcker's accomplishment, however, was the crushing recession of 1980-1982.
The unemployment rate peaked at 10.8% in 1982. That's more than three times as many unemployed Americans as in 1969, when the unemployment rate was 3.4%.
Today's unemployment rate is 3.8%, the lowest since, well, 1969, when Richard Nixon was in the White House, Neil Armstrong walked on the moon, and an X-rated film called "Midnight Cowboy" won the Oscar for Best Picture.
Stagflation is a major reason why millions of Americans lost their jobs in the 1970s. It's also why President Jimmy Carter lost his job to Ronald Reagan. Accordingly, the Biden administration can't be very pleased with the latest economic numbers, as the 2024 presidential election heats up. Comparisons to Carter are the political kiss of death.
Read More...
没有评论:
发表评论