{"id":1569147,"date":"2022-07-25T06:51:00","date_gmt":"2022-07-25T10:51:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569147"},"modified":"2022-07-25T06:51:19","modified_gmt":"2022-07-25T10:51:19","slug":"ny-post-editorial-board-why-america-seems-destined-for-stagflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ny-post-editorial-board-why-america-seems-destined-for-stagflation\/","title":{"rendered":"NY Post Editorial Board: Why America Seems Destined for Stagflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fny-post-editorial-board-why-america-seems-destined-for-stagflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1569147&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/07\/Carter-Biden-stagflation.jpg?quality=75&#038;strip=all&#038;w=1024\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The Labor Department last week reported that first-time unemployment claims <a href=\"https:\/\/nypost.com\/2022\/07\/21\/americans-filing-jobless-claims-at-highest-level-in-8-months\/?utm_source=sailthru&#038;utm_medium=email&#038;utm_campaign=news_alert&#038;utm_content=20220721&#038;lctg=60c37da7dba83e59146f67bc&#038;utm_term=NYP%20-%20News%20Alerts\">hit their highest level<\/a> since last November, back when the Delta variant was first giving way to Omicron. That, as inflation hit 9.1% in June, and wholesale prices surged <em>11.3%. <\/em><\/p>\n<p>Welcome (back) to stagflation \u2014 a nasty combo that last hit under President Jimmy Carter, back when Joe Biden was a young senator.<\/p>\n<p>Applications for jobless benefits for the week ending July 16 spiked to 251,000, a jump of 7,000 over the prior week. Since April, new claims have risen by 85,000 \u2014 even though, with fading COVID, you\u2019d expect them to fall, especially since the <a href=\"https:\/\/nypost.com\/2022\/06\/04\/america-isnt-working-thanks-to-covidiocy-and-bidenomics\/\">labor-force participation rate has also fallen<\/a> since March.<\/p>\n<p>Add to that a sustained rise in <em>continuing<\/em> jobless claims, up 122,000 (on a non-seasonally adjusted basis) through July 9; 1,384,000 Americans are collecting unemployment. The combo (more people out of work, more people <em>staying<\/em> unemployed) strongly suggests the unemployment rate\u2019s about to take off.<\/p>\n<p>Meanwhile, real Gross Domestic Product fell in the first quarter at an annual rate of 1.6%, and the Atlanta Fed predicts another decline, perhaps even larger, for the second quarter, which ended June 30 (official word comes later this week). <\/p>\n<aside class=\"single__inline-module alignright\">\n\t<\/aside>\n<p>Two straight quarters of negative growth is the <em>definition  <\/em>of recession. And the Federal Reserve (quite rightly) promises continued interest-rate hikes to try to get inflation under control \u2014 even though that\u2019s likely to further fuel joblessness, adding to the anti-growth pressure.<\/p>\n<p>A shrinking economy plus soaring prices earned the \u201cstagflation\u201d moniker under Carter as prices rose as much as 13.5% a year, unemployment hit 7.8% and growth went negative. It\u2019s a triple whammy of pain: high prices, folks out of work, fewer goods and services. <\/p>\n<p>And then as now, the nation faced a shortage of gasoline. Americans were struggling under an economy in shambles.<\/p>\n<p>Carter <a href=\"https:\/\/nypost.com\/2022\/01\/08\/kamala-harris-echoes-jimmy-carter-blames-american-malaise-for-bidens-woes\/\">blamed the public<\/a>, summing up the problem as a \u201ccrisis of confidence\u201d in his famous \u201cMalaise\u201d speech. Today, President Joe Biden blames Vladimir Putin, Republicans and greedy oil companies (when he\u2019s not pretending that everything\u2019s sure to get better real soon).<\/p>\n<p>Yet Biden and fellow Democrats were warned about inflation, even by economists on the left, before they rammed through their $1.9 trillion spending bill last year (with not one Republican vote). They waged a war on fossil fuels that helped spark the oil shortages and pain at the pump. <\/p>\n<p>And they did practically nothing as supply-chain snarls helped produce empty shelves and higher prices everywhere. (Heck, the baby-formula shortage is <em>still<\/em> getting worse.)<\/p>\n<p>The Fed didn\u2019t help, for much of last year parroting the White House\u2019s lie that inflation (now in its 14th straight month at over 5%) would be \u201ctransitory,\u201d while holding down interest rates and ballooning the money supply. Now it\u2019s rushing to catch up,  belatedly spiking rates by a half point in May and <a href=\"https:\/\/nypost.com\/2022\/06\/15\/fed-hikes-rates-by-0-75-percentage-point-biggest-increase-since-1994\/\">three-quarters<\/a> in June (the most since 1994!); this  week\u2019s hike could be a full percentage point. (It\u2019s also working to trim the money supply.)<\/p>\n<p>Again, the Fed\u2019s action is necessary \u2014 but boosting interest rates was only part of the formula President Ronald Reagan used to end stagflation when he took over from Carter: He also started reining in Uncle Sam\u2019s spending and, to spur growth, cut tax rates across the board and rolled back federal regulation\u2014 three moves that  Biden and his party utterly reject.<\/p>\n<p>Indeed, the administration\u2019s burdening the economy with a host of new regulations, from its war on carbon fuels to pro-union rules to \u201cdiversity\u201d mandates, while Sen. Chuck Schumer and Speaker Nancy Pelosi keep finding new ways to goose spending and strive to pass new tax hikes. <\/p>\n<p>The nation\u2019s suffering runaway inflation, with rising unemployment and recession in the cards, yet the Democrats keep fueling the flames. And while voters will likely shift Congress this fall, it\u2019s not \u2019til 2024 that they can give Biden the Jimmy Carter treatment and make him a one-term president.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Labor Department last week reported that first-time unemployment claims hit their highest level since last November, back when the Delta variant was first giving way to Omicron.<\/p>\n","protected":false},"author":1,"featured_media":1575383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1569147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1569147"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1569147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1575383"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1569147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1569147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1569147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}