About Inflation:
Affordability is the new buzzword and high prices are the problem, and the Democrats are trying to blame Trump for the high prices.
During the Biden administration, inflation rose to around 14 percent, at one time because of reckless spending on the part of the Biden administration and because of the Biden administration war on fossil fuels.
The first day Trump took over in 2025, the Democrats were asking why Trump had not brought prices down. The prices the Democrats had jacked up during the Biden administration.
Here’s the thing about inflation: It appears quickly and disappears very slowly.
Back during the Jimmy Carter presidency in the late 1970’s, we had double-digit inflation, double-digit unemployment, and double-digit interest rates. So, we have been here before.
Here is a simplified example of how inflation works.
You live in a town that has two lumber companies. When inflation hits, the lumber companies raise their prices, because the prices they pay have risen and they have to raise prices or go broke.
When inflation gets back to normal (2 or 3 percent), the lumber companies don’t immediately lower their prices, even though their costs have gone down. No, they leave the high prices in place.
What causes the prices to come back down is that one lumber company decides to try to increase his business by lowering his prices, and he can do so because his costs are lower, so he lowers his prices in hopes that his competitors customers will buy from his company because his prices are lower than the competition.
Well, the competition sees what the other lumber company is doing, and this causes him to lower his prices in an effort to compete with the other lumber company. And this is how lower prices come about.
But, this lowering of prices takes time. This is not the fault of Donald Trump. Trump lowers the prices of gasoline and other essential items in the economy, but it is up to individual business people to lower their prices as the situation dictates.
The prices will come down. A year from now you won’t hear complaints about inflation. The U.S. economy is getting ready to take off Big Time!