“Slightly younger dumbass”
Inflation is almost impossible to predict or control. It is driven by many different things, and while everyone has an opinion, the explanation provided by the Harvard Business Review (“HBR”) sounds simplistic but makes sense. HBR’s opinion is that Inflation is caused by “too much demand relative to supply.” HBR delves much deeper into the root causes, but the pandemic is a great example of supply chains breaking down, making it more difficult-and expensive-to move supplies from point A to B. It is typically accompanied by a less than stellar economy; however, as it continues now, we have a robust economy that should be leveling things out, and according to a recent study by the Wall Street Journal, inflation has eased more than expected. No one knows for sure what will drive inflation in the future, especially not Donald Trump, who claims he’s going to lower inflation. He doesn’t have the power to do that. Fortune recently published a piece that backs that up.
Forbes reported that inflation will go up whether Trump becomes president or whether President Biden remains. Both Trump and Biden are proposing inflationary policies, and even though we can expect inflation to increase, how much it increases will depend on who wins the White House. Even as Donald Trump crows that he will lower inflation, it’s just another in a long list of lies. Forbes consulted with Oxford Economics to get their take on inflation and its ebbs and flows, and Oxford Economics predicts that inflation will increase under Trump.
Deputy Chief of Oxford Bernard Yaros, Jr. predicts that a Trump presidency will mean peak inflation of 0.6 higher than the current inflation of 3.3%, which means he will drive it up to 3.9. Under Biden, however, Yaros predicts only a 0.1 increase. Sounds like we need to keep Biden, but we knew that anyway. Now, what Yaros predicts will drive inflation up under Trump is his “draconian immigration policies,” which will ultimately shrink the workforce. Trump also plans to set tariffs across the board, which will also drive inflation up. Biden will drive the inflation up due to a temporary extension of the child tax credit. Well, at least he’s trying to do some good. His concern is people, not money.
According to Yaros, inflation will increase after the child tax credit because low-income families will spend more money during a time when the economy doesn’t need it. He does, however, predict that this will ultimately help to stabilize the economy. Yaros explained: “In the long run, family support policies stimulate growth without raising inflation because they boost the economy, not by having people spend, but by allowing more working mothers to participate in the labor force.”
Yaros also reminds us, again, that tariffs do not help the American people. In fact, they cause inflation to worsen, as tariffs cause price increases, something Donald Trump still doesn’t understand. Better to have an older man in office who understands how things work than a slightly younger dumbass.
Shirley is a former entertainment writer and has worked in the legal field for over 25 years