Donald Trump tariffs could bring back stagflation – Donald Trump Sucks

Donald Trump tariffs could bring back stagflation – Donald Trump Sucks


The U.S. National
Archives/Flickr

  • Stagflation would make Americans feel poorer by pushing
    up prices
  • Tariffs could be a trigger, making imported products
    more expensive and hurting businesses that manufacture
    overseas
  • I
    want tariffs
    ,” President Donald Trump reportedly told his
    advisers recently — he also reportedly rejected a Chinese offer
    to cut steel production as a way of avoiding tariffs

If President Donald Trump is able to enact the trade policy he
wants, the US economy could be blasted to a very uncomfortable
part of its past — a period during the 1970s when it suffered
from something called stagflation.

Stagflation is a cocktail of persistently low economic growth,
high unemployment, and inflation. For average Americans, that
means prices are rising but a weak economy means incomes can’t
keep up.

Wall Street has been thinking about this
since Trump was elected
.

“The classic stagflationary episode occurred between 1967/68 and
the early 1980s,” Victor Shvets, a strategist at Macquarie, wrote
in a note to clients last year. “The US economy had effectively
moved into stagflation around five years before global oil prices
were raised in 1973. It was a period of persistently high and
volatile inflation, high unemployment and volatile industrial
production.”

You see how this could be a problem.


inflation vs unemploymentAndy Kiersz/Business Insider, data from
FRED

‘Tariffs — I want tariffs’

You may have caught a
report this week by the news website…

click here to read more

Tags:

Share this post

Post Comment