Donald Trump's tariffs are bad news for everyone, and now, economists are warning they could cause stagflation.
Stagflation is what happens when we have both inflation (higher costs) and a stagnant economy (high unemployment, low growth).
These two things don't normally happen at the same time, but with an external shock like tariffs we're at real risk of experiencing stagflation. Inflation, like we've seen over the past few years, is normally accompanied by low unemployment and often occurs when people have extra money to spend. A stagnant economy on the other hand, usually means prices drop.
But with stagflation, we have the worse of both worlds. It's a devastating combo for people and businesses.
I broke down stagflation while shuttling my kids around, you can watch here.
I hope you learned a thing or two, and if you have a few bucks to spare, consider chipping in to our campaign so I can continue standing up to Donald Trump and calling out his BS.
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Katie
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