Was inflation really 9% when Biden took office?
Biden keeps saying it was 9% when he took office.. Are people believing him?
Does he really mean 1.9%?
Does he really mean 1.9%?
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LeopoldBloom · M
It was 9% over the previous 12 months. As the current rate gradually drops, the 12 month rate will also drop. The rate current at the time was much lower.
Obviously, you have to specify the time period. For example, the rate is going to be very high if you’re looking at the past 100 years, and very low if you only compare with yesterday.
Obviously, you have to specify the time period. For example, the rate is going to be very high if you’re looking at the past 100 years, and very low if you only compare with yesterday.
Thinkerbell · 41-45, F
@LeopoldBloom
The annualize the rate if they are being honest (that may exclude CNN and MSNBC)
For example, if there was a 1% increase in prices over the previous month, they should say the annualized rate for that month is 12%.
The annualize the rate if they are being honest (that may exclude CNN and MSNBC)
For example, if there was a 1% increase in prices over the previous month, they should say the annualized rate for that month is 12%.
LeopoldBloom · M
@Thinkerbell And depending on the source, they do. The monthly rate is what people notice, but the annualized rate probably has a bigger effect on actual spending and overall economic growth.
Thinkerbell · 41-45, F
@LeopoldBloom
And another figure people notice is the cumulative inflation since Biden took office 3 1/3 years ago. It stands at about 19%.
And another figure people notice is the cumulative inflation since Biden took office 3 1/3 years ago. It stands at about 19%.
LeopoldBloom · M
@Thinkerbell Especially in areas like food. But try explaining that Ukraine was supplying wheat to Europe and the war is affecting that and raising wheat prices worldwide.
The president has almost no ability to affect inflation, but they get credit for low inflation and blame for high inflation. I'm not complaining, that's just part of the job. I'm sure there are some people who will vote for Trump because they remember low prices four years ago and think Trump will magically bring those back. Inflation is definitely a factor for how people vote, but it's not the only factor. Inflation in 2021 and 2022 was at a historic high, yet the Democrats gained a seat in the Senate, and the "red tsunami" never materialized. Based on past patterns, the 2022 midterms should have been a Republican blowout as the party in the White House almost always loses seats in the first midterm, especially coupled with high inflation. But that didn't happen because other factors, like horrible candidates like Dr. Oz and Herschel Walker, and outrage over the Dobbs decision also had an effect.
The president has almost no ability to affect inflation, but they get credit for low inflation and blame for high inflation. I'm not complaining, that's just part of the job. I'm sure there are some people who will vote for Trump because they remember low prices four years ago and think Trump will magically bring those back. Inflation is definitely a factor for how people vote, but it's not the only factor. Inflation in 2021 and 2022 was at a historic high, yet the Democrats gained a seat in the Senate, and the "red tsunami" never materialized. Based on past patterns, the 2022 midterms should have been a Republican blowout as the party in the White House almost always loses seats in the first midterm, especially coupled with high inflation. But that didn't happen because other factors, like horrible candidates like Dr. Oz and Herschel Walker, and outrage over the Dobbs decision also had an effect.
DogMan · 61-69, M
@LeopoldBloom Energy prices have done a lot to drive up prices, and inflation.
I predict that oil futures will plummet right after Trump gets elected, like they did last
time. Because they know he will immediately bring back drilling and pipelines, and
roll back regulations that have driven up oil/gas prices. Once energy prices fall,
so will inflation.
I predict that oil futures will plummet right after Trump gets elected, like they did last
time. Because they know he will immediately bring back drilling and pipelines, and
roll back regulations that have driven up oil/gas prices. Once energy prices fall,
so will inflation.
LeopoldBloom · M
@DogMan Got it. Nothing is based on reality, it's just perception. That does have something to do with it, because at bottom, money is a shared illusion. But the inflation in 2021 had more to do with real-world events, like the disruption of supply chains from COVID and the Ukraine war. It's possible that prices will drop in response to Trump being elected. It's also possible that could trigger a stock market collapse as investors don't like instability and uncertainty, and Trump will definitely bring both as he did in his first term.
The national debt isn't an issue as long as inflation assures that money borrowed today will be paid back in cheaper future dollars. A prolonged deflationary period would have the opposite effect and would be disastrous.
The national debt isn't an issue as long as inflation assures that money borrowed today will be paid back in cheaper future dollars. A prolonged deflationary period would have the opposite effect and would be disastrous.
DogMan · 61-69, M
@LeopoldBloom Correction, the Ukraine war did not start until 2022.
LeopoldBloom · M
@DogMan Inflation was pretty bad in 2022 as well. That's also when COVID pretty much ended and supply chains started up again.