Fester has just grossly over-simplified the cause of inflation.
It's what a simpleton does.
So now Trump is backtracking on his promise to bring down grocery prices. Anybody with half a brain knew he couldn't do that. But his voters bought it and thats all that matters to him.
He just said it's very hard to bring prices down once they are up, but that he STILL THINKS they will come down. (This is reference to gas prices, which he promised to get down. Transportation is the biggest expense in getting goods to market.) It's like a row of dominoes. You push the first one over, and the rest go down in sequence.
There is also a backdoor to bringing prices down, and that is to have wages going up. He did that during his first term, so there's no reason he won't do it again.
He also said he didn't think his Presidency would be a failure if prices did not come down. Oil companies are not going to bring energy costs down by themselves. The market does that. It always has and always will. Trump wants to drill, drill, drill. Who is going to refine the oil? US refineries are running at capacity right now.
Wages are going up. They have been for awhile.
if he is able to get wages going up again, just like I said. If a person is paying $200 a month more for groceries than they did four years ago, and the price remains the same, but their wages go up $400 a month, they are still better off. Even though it was INDIRECTLY, they are paying a lower percentage of their earnings for groceries, so the effect is the same as lowering grocery prices.
Kamala made the same promise, but she could not explain how she was going to do it, except to prosecute companies for "price gouging." Government prosecutions NEVER result in a rebate to the public. Any fines go to the justice department. Rebates and refunds are had through civil suits in a class action case against a company.
The free market will bring prices down. If there is a glut of oil due to more drilling and production, prices will come down or the companies won't be able to sell oil because foreign suppliers will be undercutting their prices. That's how the free market works. You increase the supply to more than what the demand is, and the prices come down. Saudi Arabia has manipulated oil prices for years by withholding oil from the market. We have more oil reserves, so we can go toe to toe with the Saudis and force them to lower their price of not sell any oil. Then Russian sales will dry up, so they will have to sell at or below what the Saudis are selling at. Consumers of energy are the ultimate beneficiaries as prices come down incrementally over a year or two.
...10/10 - Detroit Economic Club.
10/30 - Green Bay: "Bacon, lettuce, tomatoes; everything is so much higher than it ever was."
11/4 - Pittsburgh: "A vote for Trump means your groceries will be cheaper."
12/8 - Meet the Press: "I won on groceries. We're gonna bring those prices way down."
TODAY!!!!! - NYSE, standing in front of a giant blowup of his Time cover:
"People can't afford their groceries and they're gonna be affording their groceries very soon."
But in the article inside Time, Trump said of groceries:
"It's hard to bring things down once they're up. You know, it's very hard."
It's a good thing for Trump that MAGAts can't read.
ANYONE who believes ANYTHING Trump says is a fucking moron.
I’m seeing both food prices and gas go down. I just paid $2.85 a gallon for gas and $2.99 for two gallons of milk. Not $2.99 a gallon but $2.99 for BOTH gallons of milk. The Monk fruit I use for sweetener is down from $8.99 to $6.99 and these are just examples, but hey, So far so good!
BWAAAAAAAAAAAAAAAAAAAAHAHAHAHAHAHA!!!!!!!!!!!!!!
You must have drunk ALL the........
RR and inicky beat me to it!
of what Trump will do. If you are a gasoline wholesaler and you are sitting on inventory that you have been selling at $3.00 a gallon, and you know that in six months under Trump, the price could be $2.00 a gallon, and you are going to take a big hit, your best move is to lower the price NOW a SMALL amount and clear out your overpriced inventory. Recent price drops have nothing to do with anything Biden did, or didn't do. It's the market anticipating the market going down, so it's better to take a little discount on inventory now rather than a huge discount six months from now when Trump's energy policies and increased production start taking effect and prices could plummet.
I have a client who is a major gasoline supplier to independent stations in SoCal and this is how he explained it to me when I asked why there has been a price dip lately. Trying to give Biden any credit makes you a good Democrat soldier, but it's not what is really happening.
If you watched the interviews on the floor of the stock exchange yesterday while Trump was visiting, every single interviewee said things are great now IN ANTICIPATION of Trump re-entering the White House. If you're an investor who waits until things happen to invest, you are more likely to lose in the long run. The only thing Biden contributed to this run-up is that everyone knows he's leaving, so they are confident about the FUTURE under Trump, and that's what is driving the optimism.
The reality is that U.S. Presidents have very little control over the price of gasoline.
http://www.convenience.org/Media/conveniencecorner/Does-the-President-Control-Gas-Prices
President G. W. Bush did inadvertently crash the price of gasoline, when he failed to stop the Great Recession of 2008, which dried up demand for just about everything.
the policies they set can manipulate the market up or down. By increasing output, prices will come down because there is more supply than demand.
They have a long history of keeping prices high by lowering their output. And if the US increases its output that's exactly what they'll do.
I think the oppose would happen. If the US tried to increase production with new drilling, OPEC would raise their output, creating an oil glut that would crash the price of oil and drive new US drillers out of business. After that happened, OPEC would lower its production to normal levels.
Its history is of using production cuts to drive up prices and there's no reason to think they would not do this again.
Don't confuse cost with price. Inflation dilutes money so prices never come down from where they WOULD have been. However costs can come down if wages rise to catch up with prices.
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Even if massive oil discoveries drive the price of oil to new lows, it is still a higher price than it WOULD have been before inflation..
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And even if prices are at record highs, if some magic of production efficiency increases wages to new highs as well, costs are down before inflation.
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Cost is more important than price to the average person.
The Fed has a target of 2% inflation. Prices will not decrease, which would create deflation and damage the economy. Rising wages also cause inflation if there is not an attendant increase in worker productivity. It's called the wage-price spiral. The Fed also has a target unemployment rate of around 4%, so that also influences what they set interest rates at (the cost of money).
-- Modified on 12/13/2024 5:43:40 PM
to confuse the shit out of himself.
Fester has just grossly over-simplified the cause of inflation.
It's what a simpleton does.
Incorrect. Free markets cannot print money and therefore cannot create inflation. Only government deficit spending can create inflation -- they just print more money.
Cost is more important than price to the average person.
Generic cola
When a buyer substitutes a cheaper product for one they can no longer afford, this is called the "substitution effect" in economics; essentially, consumers switch to a more affordable alternative when the price of their preferred product increases. - Google Gemini
Which cola is the superior product, Coke or Pepsi and which one is a human right under Socialism?