Tuesday, November 28, 2023

Econ 101

President Biden keeps talking about how "inflation is down" as though that should make you feel really good about the economy, but it doesn't work. Economics is boring - bear with me while I make clear what he is saying, how it is a little bit true but misleading.

The "inflation" he's talking about is the rate (speed) at which prices are rising. When he says inflation is down, he means prices aren't rising as fast as they were, which is likely true. 

Prices were rising damn fast, now they are rising more slowly. But they aren't dropping to pre-inflation levels. Prices are too high and still rising, albeit more slowly. 

The pain you feel at the pump and at the grocery checkout line from high prices is still bad and still getting worse, somewhat more slowly than before. Housing (rent and home prices) is up a lot too.

Is what Biden claims is happening good? Certainly, but it isn't going to fix what's bothering you - high prices. Those high prices you hate ... you are probably stuck with. 

The exception is gasoline which as a commodity, can experience price declines in times when supply exceeds demand. When was the last time groceries or rent got cheaper? You know they didn't, ever.

Biden is stuck with "a pig of an economy" and he's busily putting lipstick on it. Odd how nobody wants to kiss its ugly snout.