I was reading some old bookmarks today, and I stumbled on this.
Stagflation is generally attributed to British Conservative MP and later Chancellor of the Exchequer Iain Macleod, who coined the term in a speech to Parliament in 1965. Stagflation is a blend of the words stagnation and inflation. It is used to describe an economy which is stagnating (or not growing) while also facing high inflation.
It’s the worst of both worlds, saturated fat in a terrible tasting dish, a petrol guzzler engine that takes 10 minutes to get to 100 km/h.
And guess what folks? We’ve got it!
So much for “good economic management”.
Thanks Mr Cullen.
What do you see?
I see an economy in ruins, inherited from Labour no less, which took a long time to turn around*.
I see a good, solid recovery with low inflation.
Then Labour takes power, and after an initial stumble things take off. That’s in large part because they took their eye off the inflation ball.
What that means is that that graph can go as high as you please, but the effects of it are neutralised by our current high inflation and interest rates. Wages are only growing slowly in real terms, and what’s left is swallowed up by high interest rates.
Finally,I see another attempt by the left to convince themselves that they’ve done a much better job than National, that not screwing up makes them better than the very hard fix-up job that National was left with, that all that corruption was worth it so they could stay in power just one more term so they could “help” people.
There’s only one category for this post.
*Let’s be fair though: they inherited their own mess from the National administration before that. But do remember, Helen was the no 2 during the 80′s Labour goverment – what does that say about their attempts to paint Key as the same as the 90′s? He wasn’t’ even in the country.