Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Pototan

(3,198 posts)
Sat Aug 16, 2025, 09:35 AM Aug 2025

Do 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.

4 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Do Americans really know how inflation works? (Original Post) Pototan Aug 2025 OP
Are you kidding? I'd posit that most Americans don't understand why no_hypocrisy Aug 2025 #1
Do many Americans really know how anything works? NewHendoLib Aug 2025 #2
Do many Americans know anything? (n/t) PJMcK Aug 2025 #3
The reason is edhopper Aug 2025 #4

no_hypocrisy

(55,201 posts)
1. Are you kidding? I'd posit that most Americans don't understand why
Sat Aug 16, 2025, 09:41 AM
Aug 2025

their credit card statements increase every month due to compound interest.

edhopper

(37,460 posts)
4. The reason is
Sat Aug 16, 2025, 10:40 AM
Aug 2025

the News media is more concerned about reporting how consumers "feel" about inflation than telling them the facts about it.

Latest Discussions»General Discussion»Do Americans really know ...