Taxulationism: The Obstacle to Economic Recovery

In the decades that followed World War II, Keynesian theory was the widely accepted economic tenet of the day. As such, it was believed that recession and inflation could not occur simultaneously-it simply didn't make sense. But in the 1970s, during the dark days of Jimmy Carter, economic growth stalled and inflation skyrocketed. The world needed a word to describe this new economic condition. "Stagflation"-a portmanteau of stagnation and inflation-fit the bill, and the word caught on.