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Thread: What is stagflation? Why economists are worrying about a 1970s-style catastrophe

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    Default What is stagflation? Why economists are worrying about a 1970s-style catastrophe

    Soaring consumer prices, supply chain shocks, rising energy costs and a hawkish Federal Reserve determined to bring inflation under control: These are the worrisome attributes of the U.S. economy that have some experts sounding the alarm over a possible return to 1970s-style "stagflation."

    Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment.

    RUSSIA INVADES UKRAINE: LIVE UPDATES

    The phenomenon ravaged the U.S. economy in the 1970s and early 1980s, as spiking oil prices, rising unemployment and easy monetary policy pushed the consumer price index as high as 14.8% in 1980, forcing Fed policymakers to raise interest rates to nearly 20% that year.

    A telltale sign, and consequence, of stagflation is rising energy prices, according to many economists, who believe it occurs when a sudden increase in the cost of oil reduces an economy's productive capacity. For instance, in 1973, the Organization of Petroleum Exporting Countries imposed an embargo on oil supplies to the U.S. over its support for Israel.

    The onset of the embargo exacerbated an upward spiral in oil prices, with the price per barrel doubling and then quadrupling. Rising oil costs imposed sky-high costs on consumers, who were forced to confront long lines at gas stations and rationing measures like "odd-even" purchases by license place number.

    Although the crisis seemed to fade with the removal of the oil embargo in 1974, the relief was temporary: The Iranian revolution brought on a second wave of dramatically high prices in 1978-1979.

    Some economists believe the U.S. economy is showcasing signs of "stagflation" today, after the Russian invasion of Ukraine sent oil prices soaring. Although gas prices moderated slightly in April, they have returned – and surpassed – the highs recorded in March.

    The average price for a gallon of gas was at $4.59 nationwide on Friday, according to AAA, up from $3.04 one year ago. It marks the steepest price for gasoline on record; until the recent inflation spike, prices had not topped $4 a gallon nationally since 2008. Some Americans are paying even more for fuel: In parts of California, for instance, prices are as high as $7 a gallon.

    https://www.foxbusiness.com/economy/...le-catastrophe
    Doc Dutch finally admits he is a steaming pile of chickenshit!

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    Liberals can no longer defend Biden the idiot
    Doc Dutch finally admits he is a steaming pile of chickenshit!

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    Quote Originally Posted by Stringfellow Hawk View Post
    Liberals can no longer defend Biden the idiot
    He is losing the Hispanics and Blacks and now middle Americans who work hard for their families.

    He is harming all Americans.

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    Quote Originally Posted by Stringfellow Hawk View Post
    Liberals can no longer defend Biden the idiot
    I sure can, Biden is not to blame.

    https://www.bloomberg.com/news/artic...-world-s-worst

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    America consumes too much - stagflation is a long overdue correction

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    Quote Originally Posted by Stringfellow Hawk View Post
    Soaring consumer prices, supply chain shocks, rising energy costs and a hawkish Federal Reserve determined to bring inflation under control: These are the worrisome attributes of the U.S. economy that have some experts sounding the alarm over a possible return to 1970s-style "stagflation."

    Stagflation is the combination of economic stagnation and high inflation, characterized by soaring consumer prices as well as high unemployment.

    RUSSIA INVADES UKRAINE: LIVE UPDATES

    The phenomenon ravaged the U.S. economy in the 1970s and early 1980s, as spiking oil prices, rising unemployment and easy monetary policy pushed the consumer price index as high as 14.8% in 1980, forcing Fed policymakers to raise interest rates to nearly 20% that year.

    A telltale sign, and consequence, of stagflation is rising energy prices, according to many economists, who believe it occurs when a sudden increase in the cost of oil reduces an economy's productive capacity. For instance, in 1973, the Organization of Petroleum Exporting Countries imposed an embargo on oil supplies to the U.S. over its support for Israel.

    The onset of the embargo exacerbated an upward spiral in oil prices, with the price per barrel doubling and then quadrupling. Rising oil costs imposed sky-high costs on consumers, who were forced to confront long lines at gas stations and rationing measures like "odd-even" purchases by license place number.

    Although the crisis seemed to fade with the removal of the oil embargo in 1974, the relief was temporary: The Iranian revolution brought on a second wave of dramatically high prices in 1978-1979.

    Some economists believe the U.S. economy is showcasing signs of "stagflation" today, after the Russian invasion of Ukraine sent oil prices soaring. Although gas prices moderated slightly in April, they have returned – and surpassed – the highs recorded in March.

    The average price for a gallon of gas was at $4.59 nationwide on Friday, according to AAA, up from $3.04 one year ago. It marks the steepest price for gasoline on record; until the recent inflation spike, prices had not topped $4 a gallon nationally since 2008. Some Americans are paying even more for fuel: In parts of California, for instance, prices are as high as $7 a gallon.

    https://www.foxbusiness.com/economy/...le-catastrophe
    All predicted by then President Trump. Just like the now proven, Clinton created Russia hoax, the man was correct and lefties wet their panties.
    Quote Originally Posted by Doc Dutch View Post
    Agreed. Shooting angry Trumpers should be a national pastime.
    Quote Originally Posted by BidenPresident View Post
    Only conclusion. Going to a Christian school causes you to be a mass murderer.

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    Quote Originally Posted by Phantasmal View Post
    Biden is unfit to lead and has proved it over and over with his gaffes and lies. He is fucking idiot and undefendable no matter what your liberal mouthpiece says
    Doc Dutch finally admits he is a steaming pile of chickenshit!

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    Quote Originally Posted by Stringfellow Hawk View Post
    Liberals can no longer defend Biden the idiot
    Explain to us directly, no right wing website or Murdoch vehicle, in your own words, exactly how is Biden responsible for today's inflation

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    Quote Originally Posted by Stringfellow Hawk View Post
    Biden is unfit to lead and has proved it over and over with his gaffes and lies. He is fucking idiot and undefendable no matter what your liberal mouthpiece says
    "lies," can't say it enough, a Trump lemming accusing another of lying is like a Bernie Madoff defender labeling another individual a thief

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    We should be so lucky that we only get stagflation.

    It will almost certainly be a lot worse than that!

    We have earned worse for sure.
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by Lionfish View Post
    All predicted by then President Trump. Just like the now proven, Clinton created Russia hoax, the man was correct and lefties wet their panties.
    You forgot the Big Lie, oh, and also that he predicted a "tremendous thirty foot high reinforced concrete Wall that Mexico was going to pay for"

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    Quote Originally Posted by Hawkeye10 View Post
    We should be so lucky that we only get stagflation.

    It will almost certainly be a lot worse than that!

    We have earned worse for sure.
    Wait a minute, in economic terms, what is worse than stagflation?

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    Quote Originally Posted by Stringfellow Hawk View Post
    Biden is unfit to lead and has proved it over and over with his gaffes and lies. He is fucking idiot and undefendable no matter what your liberal mouthpiece says
    Lol, I think he’s fine. So do the leaders of the other countries. Joe has always made gaffes, nothing new here, but he’s good at diplomacy.

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    Ripping apart the global economic system because of Ukraine will go down in the Suicide of the West chapter of history.

    We are lead by infants.
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by archives View Post
    Explain to us directly, no right wing website or Murdoch vehicle, in your own words, exactly how is Biden responsible for today's inflation
    his relentless attacks on domestic oil production- Hint- I work with Exxon, BP, Vertex, Shell, Motiva.
    Creating this ridiculous inflation with the handing out of free money without return, people are literally sitting at home refusing to work. Democrats always try to create a larger dependent society
    Discrimination over the working class of people if they are not union.
    His indecisiveness and wrong decisions have destroyed the stock market costing investors a drop of 20%, again an attack on the working class and retirees.
    Did you see his speech last night? he met with Asian leaders in Asia!! no shit?!! he is a bumbling fucking idiot that makes Carter look like a saint
    Doc Dutch finally admits he is a steaming pile of chickenshit!

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