Stagflation.
For Americans of a certain age, it conjures memories of painfully long lines at gas stations, shuttered factories and President Gerald Ford’s much-ridiculed “Whip Inflation Now” buttons.
On Thursday, the government estimated that the economy shrank at a 1.5% annual rate from January through March. But the drop was due mostly to two factors that don't reflect the economy's underlying strength: A rising trade gap caused by Americans' appetite for foreign products and a slowdown in the restocking of businesses inventories after a big holiday season buildup.
Until about 50 years ago, economists viewed stagflation as a near-impossibility. They hewed to something called the Phillips Curve, named for its creator, economist A.W.H. “Bill’’ Phillips of New Zealand. This theory held that inflation and unemployment move in opposite directions. Stagflation, and especially chronically high inflation, became a defining feature of the 1970s. Political figures struggled in vain to attack the problem. President Richard Nixon resorted, futilely, to wage and price controls. The Ford administration issued “Whip Inflation Now” buttons. The reaction was mainly scorn.There’s “flation’’ for sure: Consumer prices shot up 8.3% in April from a year earlier, just below a 41-year high set the previous month.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Worry about stagflation, a flashback to '70s, begins to growStagflation
Les mer »
Chicago temps bounce back to the 70s with threat of rainTemperatures will reach the 70s later today with an attendant boost in humidity levels.
Les mer »
Croatia's plans for radioactive waste worry neighbouring BosniaCroatia's plan for a new radioactive waste storage facility near its border with Bosnia is facing mounting opposition from its neighbour due to concerns the plant could have a potentially devastating health and environmental impact.
Les mer »
No iPhone 14 Max delay is currently predicted, but Apple has plenty to worry aboutInstead of worrying about iPhone 14 Max-related supply chain issues, it sounds like Apple's major concern this year could be demand for the entire iPhone 14 family.
Les mer »
Families mourn, worry in wake of elementary school shootingUVALDE, Texas (AP) — Distraught families gathered at a local civic center and turned to social media to mourn and to make desperate pleas for help finding missing children as the death toll in a gruesome school shooting at a Texas elementary school rose to at least 19 students and two teachers.
Les mer »