AP - It's a toxic economic mix the nation hasn't seen in three decades: Prices are speeding upward at the fastest pace in a quarter century, even as the economy loses steam.
Economists call the disease "stagflation," and they're worried it might be coming back.
Already, paychecks aren't stretching as far, and jobs are harder to find, threatening to set off a vicious cycle that could make things even worse.
The economy nearly stalled in the final three months of last year and probably is barely growing or even shrinking now. That's the "stagnation" part of the ailment. Typically, that slowdown should slow inflation as well — the second part of the diagnosis — but prices are still marching higher.
RLCC: There's only one way out of this so-called business cycle. Cycling (booms and busts) will last as long as our economy is based upon plutocratic control of competition. The only way out is no control by the wealthy and by cooperation rather than competition.
from on February 26, 2008, 2:54pm