Saturday School: What Is Stagflation?

Watch this video to learn why a return of this 1970s scourge would be so terrible for consumers.

Saturday School: What Is Stagflation? Photo by diy13 /

If you have a nostalgic fondness for bell bottoms and smiley face stickers, you probably remember the 1970s. However, chances are good that your memories of stagflation are not quite as warm.

Stagflation — a combination of inflation and slow economic growth — was a plague in the early part of that decade. Some people worry that stagflation could make a return today. Watch this Khan Academy video to learn the circumstances that trigger stagflation, and why it is so dangerous for the American consumer.

Do you remember the stagflation of the 1970s? Share your memories by commenting below or on our Facebook page.


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