The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

The Return of Stagflation?

Posted on | February 17, 2011 | 11 Comments

The inevitable effects of Keynesianism are beginning to make themselves felt:

U.S. core consumer prices rose at the fastest pace in more than a year in January, indicating a long period of slowing inflation had run its course. The Labor Department said on Thursday its core Consumer Price Index, which excludes food and energy costs, increased 0.2 percent — the largest gain since October 2009. The index rose 0.1 percent in December. The increase, which was above economists’ expectations for a 0.1 percent gain, was driven by rises in the cost of apparel, shelter and airline fares.

More “unexpected” news:

Stocks headed lower Thursday morning after the government said first-time applications for unemployment benefits jumped more than expected last week.
The Labor Department said Thursday morning that the number of people filing for unemployment benefits rose to 410,000, up 25,000 from the previous week. That was more than economists expected.

So inflation is back in the picture and unemployment is rising again. Does the phrase “Carteresque” come to mind?

And here’s Jake Tapper causing trouble at the White House press briefing: “The president seems to think that that borrowing money to pay the interest on the debt is not adding to the debt. I don’t understand that math.”

Hey, Jake, have you ever considered running for president? Because evidently an inability to understand math is a major qualification for the job.

UPDATE: Welcome, Instapundit readers!


Category: Economics

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