In the midst of growing economic fears, the U.S. added 428,000 jobs in April. But it is unclear how long the boom will continue, as the Federal Reserve recently raised its key rate by a half-percentage point — its most aggressive move since 2000 — and signaled further large rate hikes to come. Meanwhile, Yahoo! reports that global food prices are holding near a record high as crop trade has exacerbated tight supplies and stoked inflation.
With the Federal Reserve raising interest rates and gross domestic product (GDP) shrinking, Alfredo Ortiz, president and CEO of Job Creators Network (JCN), warns that the worst inflation in four decades will eventually turn into "stagflation."
Stagflation or recession-inflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment.
"Small businesses are bearing the brunt of this economic mess, caused by President Biden's record spending spree," Ortiz submits.
Former Goldman Sachs executive, Trump advisor, and TV personality Larry Kudlow is also concerned about inflation.
"If you prevent a recession, you need to prevent inflation," Kudlow recently told the "Fox & Friends" program. "Price stability is the cornerstone to economic prosperity and growth."
Ortiz does not think the Biden administration is doing enough to combat inflation or supply chain problems.
"According to the latest JCN Foundation Small Business IQ Poll, nearly 70% of small business owners think the Biden administration isn't doing enough," Ortiz cites. "Eight in ten small business owners – including 77% of Democrat small business owners – support increasing domestic oil and gas production as a practical way to help tame inflation, but the administration refuses to do so."
He believes there is a better way.
"JCN's seven-figure Great Opportunity Project is promoting the success of state-based free-market policies in contrast to the destructive policies coming out of Washington," Ortiz notes.