As I
prophesized on Friday concerning Q1, 2023, I would like to add one more item to the list - STAGFLATION.
While Wall Street is suggesting a mild recession in 2023, many 'independent' annalists are predicting stagflation rather than recession.
Here is a good short and easy to understand definition of stagflation.
In essence, low to moderate inflation, coupled with rising unemployment, and low GDP.
The cure for rising inflation in part, is higher and higher interest rates to control the money available in the market. But, the cure puts a damper on the ability to borrow money so businesses can grow. To help offset the cost of borrowing more money, is to streamline their business even more, ala less employees.
The government could help businesses by rolling back policies that hinder growth. Reagan did this in the '80's and to a lesser extent Trump did this during his four years in office.
The last time the USA saw stagflation was in the mid to late '70's. Reagan stopped it by reducing corporate taxes and minimizing regulation on businesses.
Stay tuned...
