In my opinion, something is going to break within 6 months.
The inflation is still high and the danger of recession is still here.
this post was submitted on 07 Nov 2024
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Inflation is super down, like crazy down.
What's going to happen is that the ripple effects of the current good economy will finally hit people a few months into Trumps term, they'll give him all the credit, then when his policies decimate fucking everything and every poor person, they'll find a way to blame either democrats or trans people and learn nothing.
Inflation is down, but prices haven't come down--they are just not in increasing as fast as they were. We would technically need deflation for that to happen. That said, you are absolutely right that the 'better' economy will get attributed to Trump and he'll go on making messes elsewhere until he dies or leaves office.
Prices don't go down in a healthy economy. Asking for deflation is just asking for a great depression.
That's because crapitalism values profit over people, the environment or even business practices that would keep businesses open. Americans have a really hateful view of "fiduciary duty." It's morally/ethically bankrupt.
The inflation is still high
Where are you getting that from? That's not what the numbers say.
Go buy a good used car right now.
That isn't an indicator of current inflation. Past inflation, maybe.
People confuse "everything is expensive" with "inflation is currently high". It's an understandable misunderstanding, and part of the reason why Kamala lost.
Did you see the used car prices a few years ago? They're trending downward.
Inflation is the derivative, it's a rate of change. It doesn't say anything about absolute purchasing power. Past inflation contributed to raising prices massively. Currently, inflation is very low, so prices have stabelized to the new, higher level. To get them back down to pre-covid levels, you would need negative inflation (deflation), which most economists agree is a really bad thing. Instead, the goal must be to increase consumer purchasing power, by raising wages.
Used cars aren't a commodity. Mileage and age of available used cars has increased. Value for your dollar is continuing to go down. It's shrink flation.
[citation needed]
Go buy eggs, bread and milk. Better part of a twenty.
As I've pointed out elsewhere, that's not inflation. That's a lack of purchasing power, not inflation which is a loss of purchasing power. We lost that purchasing power over 2022 and 2023, but the difference in price between November of 2023 and now is relatively small.
Oh neat! Inflation only exists if it happened in the last 12 months. /s
Accumulative inflation is a thing, and it is up 21.8% since 2020.
Sure, but that has almost no impact on Fed policies.
I literally just bought these three items earlier today. I spent 8. High end of $20 is either exaggerating, or you're buying some fancier foods than me.
These are dollar store brands. $4 milk, 4 bread, 4 eggs, $12+ tax. Location matters, so do food deserts. Last I checked, $12 was more than half of twenty.
That's a little under $10 where I am in Seattle. No tax on food here. If I feel like driving a little bit to Target, it's only $8. I definitely know of food deserts though. The town I grew up in only has Safeway and Walmart. The IGA closed down. Looking at prices, they are about the same as they are here which sucks because the incomes are nowhere near what they are here.
I'm alright with a week of groceries for the four of us choosing $125/wk but I know that is difficult for some.
Corporate greed, not inflation.
I think it will take longer than that, there's still a lot of rich people who don't think Trump will really do the tariffs or the mass deportation. Once it becomes clear that is really happening the economy will likely start getting all kinds of messed up fast.
Also, as others have told you, inflation is actually low again currently and that is why rates are coming down now. This is the "soft landing" that everyone was talking about, just in time for Trump to take the helm.
I don't get this ... People liked trump because he wasn't a politician and did what he said . And now that he says he will do things they don't believe him even when he's already put tariffs on shit last time...
Inflation is down to 2.4%. We are fairly close to the Fed's target of 2%.
Which is a made up target with a wide margin. Many economists think a stable inflation rate might be 3% or higher! So 2.4% might already be on target.
What post election uncertainty?
The uncertainty over what Trump might break with his buffoonery.
*will break
I bet they cut it a half point after January.