General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDo Americans really know how inflation works?
The inflation rate, on average, runs between 2 and 3 percent annually. Only in dire circumstances does the inflation rate go down.
Too many Americans, and almost everyone I know, thinks that reducing inflation means prices go down. Other than fuel prices, that rarely if ever, happens.
If a product cost $10 and inflation is 9%, that product costs $10.90. And 3% increase makes the product only go up to like $11.25. So, if inflation is 2.5% a year or 2.7%, it doesn't mean shit to the average voter. All they know is that a product, service or housing "used to cost" X, now it costs X-Plus. They don't want to hear the explanation. This phenomena cost us dearly in 2024, but now the same morons are turning on Trump. It's easy to exploit and hard to explain, so during the mid-terms, I have no intention of explaining.
President Biden had this problem leading into 2024. Trump now has that same problem in 2026.
no_hypocrisy
(55,201 posts)their credit card statements increase every month due to compound interest.
NewHendoLib
(61,888 posts)PJMcK
(25,090 posts)edhopper
(37,460 posts)the News media is more concerned about reporting how consumers "feel" about inflation than telling them the facts about it.