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ECONOMY | POLITICS
Let’s Talk About Stagflation
It’s even worse than inflation and it’s coming
Let’s talk about our economy.
You’ve probably noticed that all groceries and bills have gone up in price quite a bit recently. Food manufacturers are throwing their prices up and energy companies are doing the same.
Inflation plays a big role in this. When our money becomes worth less, we can logically buy less for it. So entrepreneurs earn less and raise their prices. So they anticipate inflation but wages remain the same.
Rents and house prices will also and already are rising sharply. People will have increasing difficulty making ends meet. Capitalism is often blamed for famines and poverty but it is now so clear that governments and central banks are the culprits.
But if you thought you had had it all there is more to come. After covid, Ukraine, and inflation, economic growth also collapses. Stagnation, in other words.
Combined with huge inflation this is called stagflation.
Stagflation is really bad
Inflation by itself can cause dire consequences. Especially if governments do not take appropriate measures such as lowering taxes.
