Can New York Dodge 'Stagflation?'

WFUV’s Andrew McDonald spoke with Dr. Emily Eisner, Chief Economist at the Fiscal Policy Institute, about her new report warning that New York may already be in a period of "stagflation," which is a rare mix of high inflation and low economic growth. Eisner says the state’s rising cost of living, especially in housing, isn’t being matched by improvements in wages or quality of life. She points to restrictive building policies as a major factor, and says the state needs bolder action to make housing more affordable. During the pandemic, New York’s economy took a sharper hit than the rest of the country, losing more jobs and population, and it still hasn’t fully recovered. While the United States overall bounced back to pre-pandemic employment levels years ago, New York only recently caught up. With housing now central to the city’s upcoming mayoral race, Eisner says candidates are offering big solutions, including building at least 500,000 new units. However, she adds that real progress will require both public investment and regulatory reform. Her report calls on lawmakers to treat the state’s economic stagnation seriously, especially with more market turbulence spurred by the current Presidential administration.