| Kasz216 said: For right now anyway. Until another Jimmy Carter/James Callaghan type crisis hits anyway. Which, considering the warning signs might happen as early as Obama's second term. Looks like the only thing keeping us away from Stagflation is that the economy is too shitty to get inflation on anything that isn't a need. |
There is no longer any room to cut taxes, outside of on the upper end, unless you want to throw out the concern over the deficit.
About the only way it can go would be full Libertarian, where you end up really seriously shrinking the size of government. With that, you end up cutting into the core of other values the GOP has pushed, which is military spending, and also the drug war. I won't dismiss that there won't be a Libertarian uprising, that fuses smaller government with liberal social values (or at least strong civil liberties). If people are paranoid about the future and do the usual response of demanding Washington do something about it, then Libertarianism won't gain much traction. Anyone pro-government merely runs scare ads that undermine the Libertarian. Look at what happened to Ron Paul to see here.
As far as stagflation goes, what you describe IS partly why it can happen. Things that are need drive up prices while everything else stinks. Of course, the government lying about the numbers, and mucking around with hedonics, is attempts to mask this.
