The Return of Stagflation

Misery Index

No, we’re not back to late-1970s or early-1980s levels yet, but the so-called “misery index” (unemployment plus inflation) has reached a seventeen-year high. One can’t help but think that if the money spent on Iraq had gone to hundreds of billions of dollars worth of private- and public-sector investment, we might not be having these problems. Energy supply shocks are always tough, but with less Balad Air Base and more SUPERTRAIN and they might not be nearly as tough.