Concerns Over Stagflation in the American Economy The spectre of stagflation, a dreaded economic phenomenon where inflation soars as growth declines and unemployment spikes, haunts the American economy, reminiscent of the trying times of the 1970s. This era was indeed a lost decade for the U.S. stock market. Stagflation Worries Might Be Overstated Fears ofAnalyst Suggests Low Likelihood of Stagflation in US Economy Despite Concerns