The Dark Side of ‘Trumpflation’

Does Trump mean a return of stagflation?
A ghastly portmanteau of stagnation and inflation, the word conjures the darkest days of the disco era – stalled growth… high unemployment… soaring prices… bell-bottoms.
And some think it’s coming back for another ride in the saddle. Business Insider:
Since the election of Donald Trump, economists and analysts have once again begun to bring up the idea of stagflation hitting the U. S. economy. The combination of government spending and trade policies, coupled with an uncertain growth picture, have brought the disastrous specter of the late 1970s back into the economic discussion.
Ben Laidler, HSBC chief global strategist, with more:
A more ‘populist’ Trump could see a dramatic disruption to trade which would weigh heavily on the global growth outlook, while a much tighter immigration policy could ultimately push the U. S. toward stagflation.
Trade barriers drive up the cost of imports. Immigration restrictions increase the cost of labor. Both drive up consumer prices. Some are calling the whole thing ‘Trumpflation.’

This post was published at Examiner on November 22, 2016.

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