What is better, inflation or a recession?
Question/Comment: I am a saver whose income is mostly CDs. We seem to be facing both a recession and inflation. Which of those two is better for me? I assume it is recession?
Paul Solman: Neither is better for you – or for me either. Recession means fewer jobs, less growth in wealth. Inflation means the value of the dollar goes down. Aren’t those both bad for everyone? And suppose we have both a recession and inflation? “Stagflation,” it was called in the ’70s. That’s a double whammy, no?