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@ Dr. Monali Desai
2025-05-02 12:33:53
Does it seem like the US is headed towards stagflation? 🇺🇸 Despite Trump's promised cuts, the Trump Administration spent > $200 billion more in first 100 days versus the Biden Administration last year. We can expect with the expected increase in the federal deficit inflation will go up as well. If the Trump tariffs continue then large American corporations have two options either to pass the costs on to Americans (higher prices) or layoff American employees to save for the costs of the higher tariffs (higher unemployment). If the tariffs continue as is the end results will be either higher prices for Americans or higher unemployment for Americans and either way higher costs from higher inflation because of increased government spending from the Trump Administration. 🇺🇸 If this continues it certainly seems that the US is headed towards stagflation, which is worse than a recession. The last time the US economy was in stagflation was in the early 1970s.
https://www.cbsnews.com/amp/news/trump-promised-cuts-spent-200-billion-more/
https://blossom.primal.net/923c05ae8305e20f0089cbce2e37f483c4710ffecfd049aedbac331efe984028.jpg