Just like disco and bell bottoms, the 1970s can keep its combo of inflation, slow growth
I have a vivid feel for how bad the late 1970s were.
Not because I remember it. I was born in 1976, so I don’t. What I do recall is my parents’ stories of how awful it was, trying to keep up with inflation and hang onto jobs amid high unemployment. Invariably, those tales were told with a shake of the head and muttering about Jimmy Carter.
The word for high inflation and low economic growth looks and sounds as ugly as it should. “Stagflation” hasn’t been a specter for 40 years, but there are signs it could come back: The World Bank warned Tuesday that the economy could be in for a decade of sluggish performance.
Energy costs are helping fuel overall price increases, meaning that even if supply chain issues are solved, inflation could linger. In Texas, big bucks for oil and gas usually means growth and a flush state budget.
But high gasoline prices hurt consumers here just like anywhere else, especially those nearer the bottom of the economic ladder. And many of us are starting to feel the pinch as high natural gas prices hit our electric bills, especially in the heat of the summer.
Inflation hurts, but the job market is sizzling. So weirdly, many feel good about their personal financial situation but concerned about the country’s, polls show. That will change quickly, though, if recession drives companies to shed jobs.
Inflation or high unemployment are unnerving, but the combination saps hope. Some overlap is probably inevitable; to wring out inflation, interest rates must rise, and that pinches growth.
These aren’t just numbers. This is real pain for many Texans and Americans. It’s ongoing high stress that can harm health. It’s dreams deferred as would-be homebuyers or college students struggle just to get the bills paid.
Much of the population has no feel for the double punch of stagflation. Those who remember it wince. And those of us who’ve heard their stories just hope disco and bell bottoms aren’t coming back, too.
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