Why Your Paycheck Shrinks While Prices Soar
About this video
Stagflation is when high inflation meets weak economic growth, and it hits regular people hard. In this video, we explain what stagflation is, why it's so hard for policymakers to fix, and how it affects your paycheck, your hours, and your daily costs. Chapters: 00:00 Paycheck vs. Prices 00:16 The Policy Trap 00:32 What Is Stagflation? 00:48 The Policy Trap 01:04 US Inflation & Unemployment, 1970s 01:19 Another Shock 01:35 No Easy Fix 01:51 Phillips Curve Trade-off 02:07 The Trap Deepens 02:23 Energy is everywhere 02:39 Energy shock raises prices 02:55 Prices up, output down 03:11 Unequal Pain 03:27 The Working Poor 03:43 Hard Choices 03:59 The buying panic 04:15 Three Lessons 04:31 Crisis Sparks Innovation 04:47 The 1970s Grocery Cart 05:03 The Policy Trap 05:19 Output Drops Less 05:35 Who Suffers Most 05:51 The Feedback Loop 06:07 Modern Energy Risk Sources & further reading: ā¢ Slow But Not Steady: The Fight Against Stagflation in the 1970s ā https://www.law.georgetown.edu/denny-center/blog/slow-but-not-steady-the-fight-against-stagflation-in-the-1970s ā¢ What Is Stagflation, What Causes It, and Why Is It Bad? ā https://www.investopedia.com/terms/s/stagflation.asp ā¢ What is stagflation, and what makes it so bad? ā https://www.ssga.com/us/en/individual/resources/education/what-is-stagflation-and-what-makes-it-so-bad ā¢ Energy supply shocks' nonlinearities on output and prices ā https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2834~db448f2eb2.en.pdf ā¢ The Supply-Shock Explanation of the Great Stagflation Revisited ā https://www.nber.org/system/files/chapters/c9160/revisions/c9160.rev2.pdf ā¢ What Is Stagflation? Definition, Causes, Examples ā https://www.schwab.com/learn/story/what-is-stagflation
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