The Clark Howard Podcast 04.14.25 Clarkonomics: What Is Stagflation / Pay In 4 Gets Worse
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Apr 14, 2025 Learn all about stagflation, its historical roots, and how it could impact your personal finances. The discussion highlights why traditional banks may not be the best choice in today's economy. Dive into the dangers of 'Buy Now, Pay Later' schemes and the psychological effects they have on consumers. Discover strategies to manage credit effectively in this challenging environment, including tips to improve your credit score. Plus, hear about the complexities of Social Security and frustrating travel experiences that raise ethical questions.
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Stagflation Explained
- Stagflation occurs when a slowing economy or recession combines with high inflation.
- This creates a challenging economic environment, as seen in the late 70s and early 80s.
Navigating Stagflation Light
- Consider online savings accounts or CDs for short-term savings, but avoid traditional banks.
- Be aware that loan interest rates will likely stay high due to inflation and defaults.
Understanding Windfall Elimination Act Payments
- If you're a retired state/local government employee, check the Social Security website for 'Windfall Elimination Act' details.
- The Act restored Social Security benefits for some, resulting in unexpected payments.