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Stagflation is a mix of the words stagnation and inflation, describing an economy that is simultaneously suffering economic stagnancy and troublesome inflation.

That meant that as inflation rose, unemployment fell, and as inflation fell, unemployment rose. Thus it was believed that fiscal and monetary intervention could target employment levels by using inflation targeting.

The experience of the 1970s was known for stagflation as the US economy faced both high inflation and high unemployment. Inflation rose to over 12% by the end of 1974 and over 13% by the end of 1979.

Meanwhile the unemployment rate rose to 9% by mid-1975 and nearly 8% by mid-1980.

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Under Joe Biden’s disastrous presidency, we’ve seen:

• Record high inflation…
  
  
• More Bank bailouts…
  
  

And TRILLIONS in new tax proposals… 

Which means you could outlive your money. That’s why some Americans have diversified their retirement savings from Biden’s plans with physical gold and silver.

3 Reasons To Get The 2023 Wealth Protection Kit Today

This site is general in nature and not tailored to the specific goals of any individual. Purchasing precious metals may carry risk. Some of those risks associated with precious metals include the following: prices may rise and fall, which means the value of your metals may go up or down over time and you may sell for more or less than you paid. Past performance does not guarantee future results. Customers should understand that all purchases have some degree of risk. Customers should make certain that they understand the correlation between risk and return. Commodities involve risk and are not suitable for all investors. There is no assurance that commodities, i.e. precious metals, will achieve their objectives. Return and principal value will fluctuate and your portfolio, when redeemed, may be worth more or less than the original cost. Goldco cannot guarantee, assure, or promise future market movement, prices, or profits. Even though Goldco and its representatives are precious metals specialists, we are not licensed financial advisors and do not give financial advice. Additionally, Goldco cannot provide tax or legal advice and will not advise as to the tax or legal consequences of purchasing or selling precious metals or opening a Precious Metals IRA. Individuals should consult with their investment, legal or tax professionals for such services.

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HELP SAFEGUARD YOURSELF FROM STAGFLATION

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Will Stagflation Crush The U.S. Economy?

INFLATION

STAGFLATION IN THE 1970s        |       HOW STAGFLATION CAN OCCUR        |       HELPING TO SAFEGUARD AGAINST POTENTIAL STAGFLATION

The Fed Chairmen in the 1970s, Arthur Burns and G. William Miller, are almost universally regarded as the worst Fed Chairmen in history. And it took shock treatment from Miller’s successor, Paul Volcker, to bring inflation down and restore a sense of normalcy to the economy.

That shock treatment, however, resulted in a sharp recession from 1980 to 1982. But it was arguably needed to turn the economic ship around. So, the question remains:

Will current Fed Chairman Jerome Powell go down in history as the next Arthur Burns or the next Paul Volcker?

The Stagflation of the 1970s

The 1970s stagflation was characterized by high inflation, high unemployment, and recession. Two recessions occurred during the decade, with the first recession beginning in December 1969 and ending in November 1970, and the second recession lasting from November 1973 to March 1975.

But if you look at data for real GDP, i.e. GDP adjusted for inflation, economic contraction was rather mild. And indeed, real GDP actually grew by 38% over the course of the decade.

Indeed, if you compare that 1970-1975 real GDP growth, it works out to 12.4%, versus 12.2% for the most recent five years today.

So if we’re already experiencing similar economic growth to the 1970s, could we already be on the path toward stagflation?

How Stagflation Could Occur

If economic growth is already lackluster, the two remaining elements that would be required to come to some sort of consensus of stagflation are unemployment and inflation.

Inflation right now is still running above the Federal Reserve’s 2% target, although it has been coming down in recent months. But the impact of the Trade Wars could send prices on imported goods upward, which could end up getting reflected in the various inflation measures.

The unemployment rate also isn’t terribly high, at 4.2% in March. While it’s slightly higher than it was a few years ago, there haven’t been any significant upticks.

But if the unemployment rate were to start rising, and if inflation were to start to pick up again, then there could be a possibility that the economy could enter a period of stagflation again.

If Trump is able to successfully negotiate trade deals and minimize the impact of tariffs, all may end up well with the economy.

But if negotiations falter, or if the impact of tariffs on Chinese imports becomes too burdensome, then things could become more difficult. Markets are worried about the potential impact of these tariffs, which helps explain why there has  been so much volatility so far.

While the US economy isn’t in stagflation right now, six months or a year from now could be a different matter altogether. We’ll just have to wait and see how things shake out.

Helping to Safeguard Against Potential Stagflation

Many Americans have already taken steps to try to help safeguard themselves against stagflation by pursuing alternative assets such as precious metals. Gold in particular has seen pretty steady safe haven buying this year from people looking to stay ahead of a potentially deteriorating economic climate.

Gold has served as a safe haven asset for centuries, through both good times and bad. And this year it has rocketed to record high prices probably in part due to all that safe haven buying.

That’s why it may be an important time to explore ways you could help protect your money, especially your retirement savings.

When you’re retired, or even if you’re getting close, diversification plays an important role in making sure your money is safe and secure. That’s why so many people - including Sean Hannity himself - are turning to precious metals like gold and silver to help diversify and protect their wealth.

Is it time to learn more about precious metals and see if gold and silver are right for you? Fill out the form below to get your free 2025 Gold & Silver Kit from Sean Hannity’s trusted partner Goldco.

Goldco is an award winning company, a leader in the industry, and they've helped hard working Americans across the country protect over $3 billion in savings with precious metals.

Sean

Hannity

#MakeAmericaGreatAgain