How Stagflation Is Reshaping Corporate R&D Spending

Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes · May 28, 2026 · 7m · transcript

In this episode of Stagflation Conversations, Lucas and Luna dig into a surprising trend in the current stagflation environment: corporate research and development spending is actually rising, even as profit margins shrink and the economy slows. Using recent data from the National Science Foundation and earnings reports from large industrials and tech firms, they explore why companies are increasing R&D budgets in the face of high inflation and weak growth. Lucas points out that R&D spending by U.S. businesses hit a record $800 billion in 2025, up 9% year-over-year, despite real GDP growth…