Economy tanking under Labor, page-99

When you finally wake up to the fact that you are actually in stagflation!



Household income will soon be defined as everyone living in the same house – kids and all.

Deflation is not the lowering of prices, it is the lowering of economic activity that can also include STAGFLATION, which occurs when prices rise but there is no economic growth.

Stagflation is not exactly the same as deflation, where the price of goods and services do decline.

During periods of stagflation, the prices of goods and services increase while buying power decreases. Consumers end up spending more on less. As we are seeing now, retail sales on items such as clothing have declined, but people are spending more on power and food .

People feel as if they are earning less despite earning more because their buying power has been drastically reduced.

Companies will suffer as consumers spend less, as we are seeing at restaurants, this will lead to reductions in the workforce.

So be very careful. If you only look at prices rising and ignore the fact that your disposable income is declining, you are in for one hell of a shock.