All Roads Lead To Stagflation

Stalin

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Apr 4, 2008
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lengthy article on modern economics

Most investors have a very hard time understanding the concept of inflation and often mistake stagflation for deflation, wondering why people are spending more on less. They only see prices of their daily grocery spending, not disposable income, and certainly not economic growth and unemployment. Looking back at the 1970s, prices rose sharply following the OPEC oil price hikes, but the sharp rise in energy costs crowded out other forms of spending. This resulted in rising prices that had nothing to do with a speculative economic expansion but rather a deflationary contraction. This phenomenon, called stagflation, occurred with rising prices and declining economic growth.


comrade stalin
wall street
 
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Economic growth is not occurring at present in this country.
Some people believe that the government has the power to roll prices back to pre Covid levels.
This never happens. Inflation feeds on itself: when some prices rise due to actual economic inflation, greedy people whose companies are NOT paying much more for materials and or labor raise their prices or shrink the size of their products, especially food products.

Prices are quick to rise and very slow to come down, if they do come down. Everyone who analyzes gasoline prices should have noticed this by now.
 
Economic growth is not occurring at present in this country.
Some people believe that the government has the power to roll prices back to pre Covid levels.
This never happens. Inflation feeds on itself: when some prices rise due to actual economic inflation, greedy people whose companies are NOT paying much more for materials and or labor raise their prices or shrink the size of their products, especially food products.

Prices are quick to rise and very slow to come down, if they do come down. Everyone who analyzes gasoline prices should have noticed this by now.
Only dickheads thought the high gas prices were Biden's fault.
 
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