Taryn Phaneuf

Not quite as low as the years preceding the pandemic, but nowhere near the recent highs during the pandemic and the Great Recession or historic peaks during the 1970s and 80s.

The 70s and 80s saw a prolonged period of stagflation. Now, how did that happen? In the 1970s and 80s, the U.S. got hit with crisis after crisis. Government spending was up due to the Vietnam War and new domestic policies. Then there were multiple recessions and two different energy crises that spiked oil prices. As a result, inflation skyrocketed, economic growth stalled, and unemployment rose.

The 70s and 80s saw a prolonged period of stagflation. Now, how did that happen? In the 1970s and 80s, the U.S. got hit with crisis after crisis. Government spending was up due to the Vietnam War and new domestic policies. Then there were multiple recessions and two different energy crises that spiked oil prices. As a result, inflation skyrocketed, economic growth stalled, and unemployment rose.

The 70s and 80s saw a prolonged period of stagflation. Now, how did that happen? In the 1970s and 80s, the U.S. got hit with crisis after crisis. Government spending was up due to the Vietnam War and new domestic policies. Then there were multiple recessions and two different energy crises that spiked oil prices. As a result, inflation skyrocketed, economic growth stalled, and unemployment rose.

Now, normally, unemployment costs cool inflation, but this time it didn't. When inflation reached more than 12% in November 1974, unemployment was at almost 7%. The jobless rate was similarly high six years later when inflation hit almost 15% in March 1980.

Now, normally, unemployment costs cool inflation, but this time it didn't. When inflation reached more than 12% in November 1974, unemployment was at almost 7%. The jobless rate was similarly high six years later when inflation hit almost 15% in March 1980.

Now, normally, unemployment costs cool inflation, but this time it didn't. When inflation reached more than 12% in November 1974, unemployment was at almost 7%. The jobless rate was similarly high six years later when inflation hit almost 15% in March 1980.

Eventually, the Fed raised interest rates dramatically to bring inflation down, and the experience fundamentally changed how monetary policy works in the U.S. The new approach is likely one reason we've avoided stagflation more recently.

Eventually, the Fed raised interest rates dramatically to bring inflation down, and the experience fundamentally changed how monetary policy works in the U.S. The new approach is likely one reason we've avoided stagflation more recently.

Eventually, the Fed raised interest rates dramatically to bring inflation down, and the experience fundamentally changed how monetary policy works in the U.S. The new approach is likely one reason we've avoided stagflation more recently.

Stagflation became a major concern in 2022. We were two years into the coronavirus pandemic, and demand was running hot. But the supply side of the economy was struggling due to a few factors. Mainly, it was supply chain issues, and then Russia invaded Ukraine, which pushed oil prices higher. The Fed took steps to combat inflation, but the effects were slow, and people worried it wasn't working.

Stagflation became a major concern in 2022. We were two years into the coronavirus pandemic, and demand was running hot. But the supply side of the economy was struggling due to a few factors. Mainly, it was supply chain issues, and then Russia invaded Ukraine, which pushed oil prices higher. The Fed took steps to combat inflation, but the effects were slow, and people worried it wasn't working.

Stagflation became a major concern in 2022. We were two years into the coronavirus pandemic, and demand was running hot. But the supply side of the economy was struggling due to a few factors. Mainly, it was supply chain issues, and then Russia invaded Ukraine, which pushed oil prices higher. The Fed took steps to combat inflation, but the effects were slow, and people worried it wasn't working.

The concern was that the economy was going to stall, but inflation wasn't, and that's the conundrum we call stagflation.

The concern was that the economy was going to stall, but inflation wasn't, and that's the conundrum we call stagflation.

The concern was that the economy was going to stall, but inflation wasn't, and that's the conundrum we call stagflation.

Right now, everyone is waiting to see what impact the Trump administration's sweeping tariffs have. Tariffs have the potential to simultaneously raise prices and slow growth, depending on how severe they are and how long they're in place. One other major difference between then and now is that oil prices actually dropped recently to the lowest levels we've seen since 2021.

Right now, everyone is waiting to see what impact the Trump administration's sweeping tariffs have. Tariffs have the potential to simultaneously raise prices and slow growth, depending on how severe they are and how long they're in place. One other major difference between then and now is that oil prices actually dropped recently to the lowest levels we've seen since 2021.

Right now, everyone is waiting to see what impact the Trump administration's sweeping tariffs have. Tariffs have the potential to simultaneously raise prices and slow growth, depending on how severe they are and how long they're in place. One other major difference between then and now is that oil prices actually dropped recently to the lowest levels we've seen since 2021.

So at least the price situation isn't being exacerbated by high or rising transportation costs.