As was the case in all western economies, inflation surged in the US…The US was less exposed than Europe to higher gas prices and the peak in inflation was lower at 9.1% than in the eurozone (10.6%) and the UK (11.1%) and has subsequently declined to 2.4%…But prices in the US are markedly higher than they were when Biden entered the White House as president and it is this, rather than the current inflation rate, that appears to have affected the public mood.
That’s the thing. Economists only focus on the rate of inflation, as if people will be indifferent to inflation so long as the year-over-year rate of increase is low enough. But even at a relatively low annual inflation rate of between 2% and 3%, consumers are going to realize after only a few years that things have gotten noticably more expensive, especially if the price increases effect big monthly necessities, like rent, food, and energy. A lower inflation rate doesn’t mean prices are going down, it just means prices aren’t going up as quickly. Things are still getting more expensive, and they’re going to continue to get more expensive, forever. That’s the plan, that’s how our monetary system works. It’s not a bug, it’s a feature.
I don’t understand how politicians think/recognize Americans are stupid yet don’t try and educate them literally ever.
Biden and Harris should be explaining why our economic system benefits from having inflation always be positive. I mean, I get (not literally, only because others say so) that negative inflation isn’t what we want, and that it’s likely a bad thing. I can’t even imagine how the average American looks at those numbers or what they think when they inflation is up or back to what it used to be. I just barely kinda get it and I’m still fuckin pissed
also see: home prices, wages, and layoffs
Americans by and large don’t want to learn.
If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective. It may be good and reflection of a growing economy, but if that doesn’t reach the individual…
My costs have gone up 30% in the last 4 years, just to run my household. I’ve seen some things double in cost, a number of things are up 50%, while most are up high single digit to double digit percentages (quite a bit through shrinkflation, because I track that too).
I’ve tracked all my costs for years (mobile apps are great), so can tell what I paid for almost anything 5 years ago.
Tell me again inflation “isn’t that bad”.
If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective
That’s the thing, economists will say that modest inflation is fine, necessary even, but it’s only “fine” for people whose income increases every year at a rate that is at least equal to the rate of inflation. Anyone who doesn’t get a raise that at least keeps up with inflation is actually getting a pay cut. Many people do get at least a cost of living raise every year, but many people don’t, and those people get poorer every year.
But even people who are lucky enough to have an income that keeps up with inflation are just staying in place financially. They’re not getting any poorer, but they’re not getting any richer either. Working your ass off in a job that slowly kills your soul, just to run in place, doesn’t make people feel great about things.
