The latest from @crampell.bsky.social:
Oops! Consumers finally realize that Trump could worsen inflation.
Fearing high prices, some are stocking up for what could be an expensive four years.
www.washingtonpost.com/opinions/202…— David Darmofal (@daviddarmofal.bsky.social) December 26, 2024 at 8:04 PM
Catherine Rampell, at the Washington Post — “Oops! Consumers finally realize that Trump could worsen inflation” [gift link]
A day late and a dollar short, Americans are realizing that President-elect Donald Trump plans to short them a few dollars. That’s right: Since the election, U.S. consumers have become more likely to say they expect prices to rise next year.
Trump based his 2024 campaign on a seductive promise: He’ll bring prices down. Alas, it is virtually impossible to reduce prices; the overall level of prices almost never falls unless an economy is really sick (as it was during the Great Depression, the last time we saw widespread deflation). The best that economists generally hope for is for growth in prices to slow and for prices themselves to more or less plateau. This is already happening for some consumer products, such as groceries.
However, none of this is intuitive to non-economists. And Trump has taken advantage.
Only after winning last month did Trump fess up, belatedly acknowledging he can’t bring prices down. “I’d like to bring them down,” he told Time magazine. “It’s hard to bring things down once they’re up. You know, it’s very hard.”
Got that? There was no plan, there is no plan, and there was never going to be any plan to reduce prices. The only thing surprising about this admission is that he said it out loud.
One thing Trump didn’t acknowledge, however, is how his economic agenda — tariffs, deportations, tax cuts and kneecapping the Federal Reserve — could worsen the problem that voters hired him to solve.
But Americans seem to be catching on anyway. Every month for decades, the University of Michigan has surveyed consumers nationwide about their views on the economy. Since the election, there has been a surge in respondents saying that now is a good time to purchase big-ticket items, because prices will probably rise. Respondents became more likely to anticipate price increases for major household purchases (furniture, appliances, etc.) as well as for vehicles…
Is he stupid? I mean, we all joke about him being not as clever as he thinks he is, but signing up to be Kaiser of the Trumpenreich and being shocked by all the immigrant haters is like going to Disney World and having a nervous breakdown because you didn’t expect to see Mickey Mouse.
— Starfish Who Can’t Think Something Witty (@irhottakes.bsky.social) December 28, 2024 at 12:00 AM
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