During the 1970s recession, economists coined the term stagflation to describe the combination of high unemployment and steep inflation. I was only a boy at the time, unaware of conditions in the job market, but I do remember the skyrocketing prices on the small items I could buy with my allowance. Candy bars, for instance, suddenly doubled in price and shrank in size.
Courtesy of the master class looters, Americans in 2010 are experiencing the early stages of a much more severe stagflation, as reported in The Economic Collapse blog:
American families better get ready to tighten their belts again. There is every indication that we are all going to really start feeling the squeeze in the months ahead. The price of gas is starting to spike again. The price of food is moving north. Health insurance premium increases are being announced coast to coast and a whole slate of tax increases is scheduled to go into effect in 2011. Meanwhile, household incomes are down substantially all over the nation and the U.S. government is indicating that there will not be an increase in Social Security benefits for the upcoming year once again. So if the cost of most of the basic things in our monthly budgets is going up and our incomes are going down what does that mean? It means that average American families are about to be squeezed like nothing we have seen in decades.