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.  

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.  

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!

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.  

BWAAAAAAAAAAAAAAAAAAAAHAHAHAHAHAHA!!!!!!!!!!!!!!
You must have drunk ALL the........

...10/10 - Detroit Economic Club.

RR and inicky beat me to it!

It just doesn't work that way. Oil prices are set on a world wide basis. "Drill baby, drill" will have no immediate impact on supply. And the only way prices in general will fall is if we have a recession. Is that what Wanker wants?
This whole thing is a fantasy of mis-informed, uneducated fake economists.

Most TVs and other appliances are made abroad.  So Americans can't just "buy American." They can pay the higher price or not buy at all. This is not even complicated but Wanker and his ilk still don't get it.
DUH, indeed.

carrot saffron truffle biscuit rice  
   
(just want to make your post easy to search for so i can throw it back at you in a year or two)

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.  
.
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..
.
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.
.
Cost is more important than price to the average person.

If you're a domestic manufacturer and see the price for the foreign product rise 25%, you're not going to sit idly by, but seize the opportunity to raise the price of your domestic product to just undercut the foreign product. The end result is the consumer pays more either way.  

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.  

The reality is that U.S. Presidents have very little control over the price of gasoline.  

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.

Incorrect. Free markets cannot print money and therefore cannot create inflation.  Only government deficit spending can create inflation -- they just print more money.

Generic cola

Fester has just grossly over-simplified the cause of inflation.
It's what a simpleton does.

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.

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?

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.

There's been a 7% surge in exports from China in advance of the Trump tariffs. Likewise, American consumers have been advancing purchases and stockpiling non-perishable goods not only in anticipation of the tariffs but also of the expected rise in domestic labor costs when Trump's massive deportation of undocumented immigrants along with their legal family members removes cheap labor from the domestic supply chain.

If the entire federal government was funded by tariffs, then we must have been importing a huge amount of goods, since it's the importer, not the exporter, who is paying the tariff. The importer passes the cost onto the consumer in the form of higher prices, so it's the consumer who's paying a stealth tax. Seeking cheap foreign labor is the natural result of businesses competing in an unregulated free market system, which is what conservatives wanted, i.e. no government interference with businesses. Tariffs are a form of government interference.