Stagflation? You mean when a deer comes charging at your SUV on the way home and pops your tires? 🦌😵 Close, but…not really.
Turns out stagflation has nothing to do with woodland creatures. In case you’ve heard the term buzzing around lately, we’ve put together a nice little guide on this economic phenomenon! 🤓
Here’s Five Fast Facts on stagflation:
- 🕰️ Time Machine - Stagflation first came on the scene back in the 1970s. The term refers to an economic period of high inflation *and* high joblessness. Technically, those two conditions shouldn’t happen at the same time. Weak economies and rising unemployment usually cut inflation, but when there’s drama and uncertainty in the air, it's a different story.
- ⚡ Shock Jock - Because Trump’s comin’ in hot with major economic policy changes and tariffs, economists have started putting stagflation back on the table. In the 70s, the shock came in the form of rising oil prices, which pushed overall prices higher, too.
- 🧠 Psych Out - One of the biggest flops back in the 70s was not understanding how much public psychology influences inflation. When people get rocked by things like rising prices, they start to fear there’s no end in sight. And just the perception of rising prices is enough to make them *actually* rise.
- ✂️ Cut. It. Out. - Recently, the Fed decided to leave interest rates where they are. However, they did say we can expect a couple more cuts before the year’s over. With tariffs in play, we may see inflation start to pick up. We might also see unemployment go up.
- 🎭 Misery Business - The good news? The misery index, AKA how the people feel about the risk of (or actual) joblessness plus a rising cost of living, is pretty low right now. When it’s high, it could mean folks are more likely to hold back on hiring, investing, and spending. Something to keep an eye on!
🔥Bottom line: Now that you’re all caught up on stagflation, why not become an armchair expert on the nation’s strategic crypto reserve?! You know we have an article on that bad boy. Head here, read up, and impress your pals at the next happy hour.
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