{"id":353211,"date":"2021-10-15T03:03:54","date_gmt":"2021-10-15T00:03:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/welcome-back-to-70s-style-stagflation-misery-thanks-to-biden\/"},"modified":"2021-10-15T03:03:54","modified_gmt":"2021-10-15T00:03:54","slug":"welcome-back-to-70s-style-stagflation-misery-thanks-to-biden","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/welcome-back-to-70s-style-stagflation-misery-thanks-to-biden\/","title":{"rendered":"#Welcome back to 70s-style stagflation misery thanks to Biden"},"content":{"rendered":"<p>&#8220;<strong>#Welcome back to 70s-style stagflation misery thanks to Biden<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>A feckless Team Biden has set America up for a new round of 1970s-style stagflation. The similarities between then and now are eerie.<\/p>\n<p>Seventies stagflation resulted from profligate fiscal policy, politicized monetary policy and food and energy shocks. President Lyndon Johnson\u2019s guns-and-butter decision to simultaneously finance both the Vietnam War and his Great Society programs triggered a wave of demand-pull inflation.<\/p>\n<p>After President Richard Nixon <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed Arthur Burns as Federal Reserve chair, Burns cranked up the Fed printing press in support of Nixon\u2019s re-election efforts. The resulting currency debasement forced Nixon to abandon the US dollar standard, the linchpin of the global monetary system; the dollar cratered, driving up import prices and further stoking inflation.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>The US economy also suffered two crippling supply-side crises.\u00a0Food prices soared as a result of bad weather, Soviet grain purchases and cropland mismanagement. Energy prices skyrocketed, thanks to the Arab oil embargo.\u00a0When President Jimmy Carter ran against Ronald Reagan for re-election, America\u2019s \u201cmisery index\u201d \u2014 the unemployment rate plus the inflation rate \u2014 had breached 20 percent.<\/p>\n<p>Today, fiscal policy is <em>more<\/em> profligate.\u00a0In 1979, federal outlays were a bit over 19 percent of gross domestic product. According to the latest\u00a0Congressional Budget Office numbers, meanwhile, federal outlays will be 30.6 percent in 2021. And the proposed expenditures now on the table for a $3.5 trillion red-ink-palooza and faux $1 trillion \u201cinfrastructure\u201d package threaten to sustain that profligacy going forward.<\/p>\n<p>At the Federal Reserve, Chairman Jerome Powell has been committed to accommodating just about any level of fiscal madness progressive Democrats can jam through.\u00a0As he lobbies for reappointment, the Fed printing presses are spinning so fast, they would put old Arthur Burns to shame.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/carter-stagflation.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"The &quot;misery index&quot; was reaching high levels at the end of Jimmy Carter's tenure.\" class=\"wp-image-19808322\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/carter-stagflation.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/carter-stagflation.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/carter-stagflation.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The \u201cmisery index\u201d was reaching high levels at the end of Jimmy Carter\u2019s tenure.<\/figcaption><figcaption><span class=\"credit\">Universal History Archive\/Universal Images Group via Getty Images<\/span><\/figcaption><\/figure>\n<aside class=\"single__inline-module alignleft\">\n    <\/aside>\n<p>On the external shock front, the pandemic has struck at three main pillars of urban prosperity: high-rise office buildings, mass transit and entertainment districts. Before the pandemic hit, office occupancy rates in core US metropolitan areas like New York and Chicago were well above 90 percent. Today, those figures range as low as 30 percent; much of white-collar America has learned to work remotely.<\/p>\n<p>This structural shock has kicked all manner of low-income service workers to the urban curb, from the janitors and food-service workers to barbers and beauticians and shoe-shiners.\u00a0Excessive unemployment compensation has compounded this structural joblessness.\u00a0In many cases, it has been more lucrative for workers to stay on the COVID \u201cstimulus\u201d dole than to go to work.<\/p>\n<p>Adding to these blue-collar woes, the Biden administration catastrophically ended the Trump \u201csafe third nation\u201d agreements with Mexico, Guatemala, Honduras and El Salvador, a policy that was keeping immigrants on the other side of our southern border.\u00a0More than 2 million poorly educated illegal aliens are expected to flood into the United States in 2021, and they will put significant downward pressure on real wages for lower-income workers.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Jerome-Powell-1.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Jerome Powell, speaks at a House Financial Services Committee hearing on oversight of the Treasury Department and Federal Reserve coronavirus pandemic response.\" class=\"wp-image-19808342\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Jerome-Powell-1.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Jerome-Powell-1.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/Jerome-Powell-1.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Jerome Powell, speaks at a House Financial Services Committee hearing on oversight of the Treasury Department and Federal Reserve coronavirus pandemic response.<\/figcaption><figcaption><span class=\"credit\">Al Drago-Pool\/Getty Images<\/span><\/figcaption><\/figure>\n<p>Then there is this: Whether you support a policy of universal vaccination, the Biden \u201cno jab, no job\u201d policy will further distort labor markets, as significant fractions of workers are likely to refuse to abide by this mandate when the feds finalize it. The resulting furloughs will induce further supply shortages in labor markets, even as they create problems in understaffed essential sectors (fire, police, health, military and national security).<\/p>\n<p>A reevaluation of the administration\u2019s universal-vaccination policy might allow, at a minimum, workers who have already contracted COVID and who, therefore have robust antibodies,\u00a0to have\u00a0full labor-market access.\u00a0Meanwhile,\u00a0a concerted effort to onshore America\u2019s supply chains could reduce the risks that arise from external shocks.<\/p>\n<p>As it is, the pandemic and the overbroad lockdown response have spawned severe disruptions\u00a0in global supply chains.\u00a0We now face looming shortages of everything from\u00a0computer chip\u00a0and food\u00a0to toys for Christmas. <\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/biden-migrant.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"A Haitian migrant bathes in the waters of the Rio Grande in Ciudad Acuna, Mexico.\" class=\"wp-image-19808370\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/biden-migrant.jpg?quality=90&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/biden-migrant.jpg?quality=90&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/biden-migrant.jpg?quality=90&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>A Haitian migrant bathes in the waters of the Rio Grande in Ciudad Acuna, Mexico.<\/figcaption><figcaption><span class=\"credit\">Felix Marquez\/AP<\/span><\/figcaption><\/figure>\n<p>Make no mistake, the inflation genie is already out of the bottle.\u00a0But if Congress adds fuel to the fire with trillions in more spending, then the \u201970s will be a happy memory by comparison.<\/p>\n<p><em>Peter\u00a0Navarro, who\u00a0served as assistant to the president for trade and manufacturing policy in the Trump White House, is author the forthcoming book \u201c<\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/bit.ly\/opedstag\"><em>In Trump Time: A Journal of America\u2019s Plague Year<\/em><\/a>.<em>\u201d<\/em>\u00a0\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2021\/10\/14\/welcome-back-to-70s-style-stagflation-misery-thanks-to-biden\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Welcome back to 70s-style stagflation misery thanks to Biden&#8221; A feckless Team Biden has set America up for a new round of 1970s-style stagflation. The similarities between then and now are eerie. Seventies stagflation resulted from profligate fiscal policy, politicized monetary policy and food and energy shocks. President Lyndon Johnson\u2019s guns-and-butter decision to simultaneously finance&#8230;<\/p>\n","protected":false},"author":1,"featured_media":353212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/biden-iran-504.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[117506,5069,75466,70551,104454,5070,991],"class_list":["post-353211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-14-21","tag-economy","tag-employment","tag-inflation","tag-jimmy-carter","tag-jobs","tag-joe-biden"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/353211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=353211"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/353211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/353212"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=353211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=353211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=353211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}