Stagflation’s Trap: Why the “Stag” Might Suffocate the “Flation” — But Don’t Count on It

The Dangerous Fantasy of “Temporary Stagflation” There’s a dangerous illusion taking hold in economic circles: that any bout of stagflation we face in 2025 will be brief, benign, and ultimately “correct itself.” Don’t buy it. The narrative—mostly parroted by establishment economists and the media—suggests that weak growth will eventually drag inflation down. But that’s like claiming a drowning man won’t suffocate because he’s not burning. A Sinking Economy Wrapped in Wishful Thinking Here’s the sanitized version from the OECD: yes, the global economy is decelerating, especially in North America. Yes, tariffs are driving up prices. But hey, once those price hikes settle in, workers won’t be able to demand raises, and growth will be too weak to support sustained inflation.…