Inflation may be Worse Problem than Recession

According to JEANNINE AVERSA from the Associated Press, she points out that prices are for everyday items are going up faster paced than in a quarter century all the while the economy is dragging along with fears of recession.

The two mix of terms is dubbed stagflation by expert economists. It is true that the more time that goes by it seems that paychecks are getting stretched thinner and jobs are getting harder to find.

With the latest reports for the prices of wholesale merchandise jumped by a whopping 7.4% which was the biggest annual leap since 1981.

The two together create an economic disaster where people are not spending money because of higher prices, and companies are tightening their budgets and cutting everywhere they can.

All this news leads to a grim outlook for the future economic outlook of the US. Hopefully the economic stimulus package can do something positive.