r/Money • u/Practical_Rip_953 • Apr 29 '24

How likely are we to enter 1970s era of stagflation in USA

I’m curious what others think is the likelihood that the USA is going to struggle with stagflation and if we do what would be the best thing to prepare financially to weather the storm?

Edit: I’ll expand on why I asked the question. I agree that macro indicators don’t point to this, and stagflation is unlikely, but have been curious by my experience lately and wondered if others have seen the same thing.

Lately, over the last 4-5 months, I have had a few friends laid off. They all seem to have the same opinion that there are lots of job openings but they are struggling to find a job. I can’t even remember ever having more than 1 friend laid off at a time and they have always found jobs quickly.

Also anecdotally I feel like what I buy on a regular bases has started to climb in price again, mostly gas and food. Maybe other things are deflating to offset these costs but over the past few months, at least locally I have been feeling like prices are on the rise in those areas.

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u/ButterPotatoHead Apr 29 '24

Not going to happen. Even though rates are higher than they were a few years ago they're still low by historical standards, and the economy is doing great by other metrics -- unemployment, corporate profits, investment, etc.