This is Not Stagflation: Stagflation attributes unemployment to the Private Sector not hiring, The Private Sector is hiring, The Governments Energy agenda is artificially raising the cost of living – October 9, 2021,

People keep calling this economy stagflation when it’s clearly not, I keep researching the term and looking into the economic conditions that created that term and the results commonly attribute the term stagflation to Iain Macleod, a British Conservative Party politician who became Chancellor of the Exchequer in 1970. I didn’t only look at Wikipedia I searched other financial websites and generally, they all say the same thing.

In the 1970s, let’s remember what life was like, Oil trade restrictions resulted in rising energy costs, which raised the cost of living and exacerbated the difficulty of finding a job, thereby causing skyrocketing unemployment. But what’s ignored about the 1970s is that they didn’t have the welfare state we have now, the government wasn’t sending people checks in the mail for doing nothing.

The welfare state in the 1970s was in its early stages and politicians couldn’t buy votes in the manner they can buy them now. In this modern era, what’s being called stagflation is economic deflation propped up by cheap money. The Gold shock didn’t happen until 1971. Iain Macleod had been talking about Stagflation since 1965, in this modern era of artificially low-interest rates private businesses and banks can borrow and lend money to stimulate growth, the problem is that the Biden Administration thus far has shown terrible leadership skills, and voters have Biden by the balls.

The corporatist climate change agenda has a serious flaw built into it and it’s the artificially high cost of living price tag attached to it. The fiat dollar as I’ve stated over and over again is being detached from the labour market so low-wage earners are looking at the cost of working vs. their paycheck, and concluding that they need a “New Deal”.

They’re also looking at this push for climate and social justice and understanding that the government by its own standards is going to have to be more generous. Whether this is right or wrong way does not matter, this is the problem with the welfare state, once government presents itself as the creator of wealth, people who don’t know any better will wait it out, why find a job when the government will bail me out?

Can Biden reverse this trend? Sure, but he’d have to abandon his far-Left climate change agenda, something I think is unlikely. The economy currently runs on oil and because voters are prioritizing political climate change, the cost of living has to go up and employers are willing to hire but a lot of people don’t want to be employed in an economy with this many regulations.

So again this is NOT stagflation, people who call this stagflation are taking Joe Biden off the hook, this is something entirely new, I call it economic deflation, but people call it whatever they want. The Private Sector is doing its part, the private sector is taking the risks necessary to grow the economy, the problem is the REGULTIORY environment and this current regulatory environment is the doing of the Joe Biden administration.

Interesting times ahead