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Line 3:
Line 3: − The most recent period of stagflation in the U S. occurred during the [[Carter Administration]] in the late 1970s. Saving money becomes impossible, because the cost of living increases faster than the value of any investment return in a no growth environment. + +
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[[Socialist]] [[entitlement]] spending mandates that the [[Federal Reserve Board]] keep printing more money at a time of falling productivity and employment. Although fewer goods are produced, more money is dumped into circulation driving up prices, and no jobs are available to meet the rising cost of living. It is a socialist [[utopia]], where [[equality]] between rich and poor is achieved.
[[Socialist]] [[entitlement]] spending mandates that the [[Federal Reserve Board]] keep printing more money at a time of falling productivity and employment. Although fewer goods are produced, more money is dumped into circulation driving up prices, and no jobs are available to meet the rising cost of living. It is a socialist [[utopia]], where [[equality]] between rich and poor is achieved.
This was situation in the 1970s, when the [[Carter Administration]] sought to keep the [[Great Society]] programs of the 1960s going, and even expand upon them. Saving money becomes impossible, because the cost of living increases faster than the value of any investment return in a no growth environment.
And without savings, [[Job growth|new job creation]] becomes impossible. People consume whatever they produce as fast as they produce it,<ref>or "[[prodigal]]ity," as [[Adam Smith]] referred to it.</ref> because money becomes worthless if you hold onto it (like a game of Hot Potato, or an ice cream cone melting in your hand). This is much of the theory behind [[Keynesian economics]] and [[stimulus]] spending.
And without savings, [[Job growth|new job creation]] becomes impossible. People consume whatever they produce as fast as they produce it,<ref>or "[[prodigal]]ity," as [[Adam Smith]] referred to it.</ref> because money becomes worthless if you hold onto it (like a game of Hot Potato, or an ice cream cone melting in your hand). This is much of the theory behind [[Keynesian economics]] and [[stimulus]] spending.