Stagflationary Shock

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President Trump has had little reason to scale back on his global trade was ambitions.  If the new tariffs go into effect on Aug. 1, they could unleash the sort of devastation to consumers and businesses that economists have long worried about and that Mr. Trump has mostly avoided.

Their fear stems from the specter of a stagflationary shock, in which inflation intensifies as growth stalls.

Definition of stagflation:

Stagflation is an economic situation where high inflation, slow economic growth (stagnation), and high unemployment occur simultaneously. It is a difficult economic condition to manage because efforts to combat one aspect (like inflation) can worsen the others (like unemployment). 

The economy has been resilient.  For how long?  The new round of tariffs may hit harder.

from The Global Small Business Blog https://ift.tt/KbH2UD0