How quickly will Trump lower Prices

[Yssup Rider]

Originally Posted by Lucas McCain

I am just surprised he is already so forthcoming about it so soon. I figured he would wait at least a year before he started blaming others which he didn't. I have to give him some credit for at least owning the obvious outcome way ahead of time.

Get those lies out on the table while there's still time to forget about them.

[Tiny]

Originally Posted by 1blackman1

Congrats to Trump on his win. Now it’s time start moving from concepts of a plan to transitioning to governing.

Since the economy was the driver behind his election, what’s the plan to lower prices?

How long before prices drop back to pre-pandemic level?

What will be the rate of deflation in price indexes need to be for people to believe that the economy isn’t bad (which is the common belief for the Trump voters)?

Will Trump voters look to the Dow going up as a sign that the economy is booming even if prices remain high?

He of course isn't going to lower prices. If anything his tariffs and deportations will have an upwards effect on inflation, and will make American businesses and workers less productive.

That said, what really matters is whether wages go up faster than inflation. And on that Trump has a good record, better than any president since Clinton. He'll deregulate, which will improve productivity. And the influence of DOGE could cause the private sector to grow relative to the public sector. When more money stays in the hands of the people and businesses, instead of being allocated to government, we're more prosperous.

[Submodo]

Originally Posted by Tiny

He of course isn't going to lower prices. If anything his tariffs and deportations will have an upwards effect on inflation...When more money stays in the hands of the people and businesses, instead of being allocated to government, we're more prosperous.

More money in the hands of "people" gets spent by the people, increasing inflation, increasing prices.

Tax cuts @ corporate level, sure ... you think GE and Merck is going to pass that savings on to customers?

[Tiny]

Originally Posted by Submodo

More money in the hands of "people" gets spent by the people, increasing inflation, increasing prices.

Tax cuts @ corporate level, sure ... you think GE and Merck is going to pass that savings on to customers?

Please note government spending cuts engineered by DOGE or otherwise would be anti-inflationary. I didn't post about taxes. If you've got a choice of (a) leaving, say, $1 trillion in the private sector or (b) taxing it and having government turn around and spend it (that is, not use the funds to reduce the deficit), I believe the government spending would be more inflationary.

Inflation went down after the corporate rate was cut in 2018. That's not to say there was cause and effect. I don't think Republicans will further cut corporate taxes during Trump's upcoming term. (Maybe they will after he's re-elected in 2028 though.)

Corporate income taxes are borne by corporate employees, shareholders and consumers. GE would pass more of the cuts onto consumers than Merck. This is not as simple as you think. Do a forum search on NBER for more info. We can't discuss here as it's off topic.

[chefnerd]

You might want check your facts regarding inflation. Yes it dipped slightly in 2018 but then doubled in 2019. Then again inflation did take an almost 50% cut in 2020 when of course we had a GDP decline

[chefnerd]

There is no way to lower prices without putting price controls into effect which will never happen. Any politician claims about being to lower prices is pure B***S**Tl meant for the unthinking idiot followers

[Yssup Rider]

Originally Posted by chefnerd

There is no way to lower prices without putting price controls into effect which will never happen. Any politician claims about being to lower prices is pure B***S**Tl meant for the unthinking idiot followers

Bingo!

[Tiny]

Originally Posted by chefnerd

You might want check your facts regarding inflation. Yes it dipped slightly in 2018 but then doubled in 2019. Then again inflation did take an almost 50% cut in 2020 when of course we had a GDP decline

Huh? Here's year-on-year consumer price inflation at the end of each year as estimated by the Bureau of Labor Statistics,

2016 2.1%
2017 2.1%
2018 1.9%
2019 2.3%
2020 1.4%
2021 7.0%
2022 6.5%
2023 3.4%

The tax cuts went into effect on January 1, 2018.

If you want to look at January instead, YoY CPI was 1.6% in January, 2019, down from 2.1% in January, 2018.

If you wanted to argue that Trump's tariffs may have pushed up inflation in 2019 I'd agree with you. But if you're going to attribute that to the tax cuts, my reply, in the spirit of the season, is bah humbug! Or bahahahaha! Take your pick.

[lustylad]

Originally Posted by chefnerd

There is no way to lower prices without putting price controls into effect which will never happen.

Nonsense. Prices declined during the Great Depression due to a collapse in demand, not price controls. Even during inflationary periods, SOME prices go down - they're just outnumbered and/or outweighed in the indices by other prices going up.

What's important in a functioning market economy is that we allow RELATIVE prices to adjust to changes in supply and demand. Which is why economists generally oppose price controls - they hardly ever work because they try to suppress natural market forces.

[lustylad]

Originally Posted by Tiny

Huh? Here's year-on-year consumer price inflation at the end of each year as estimated by the Bureau of Labor Statistics,

2016 2.1%
2017 2.1%
2018 1.9%
2019 2.3%
2020 1.4%
2021 7.0%
2022 6.5%
2023 3.4%

Thanks, tiny. I knew chefnerd was wrong when he said inflation "doubled" in 2019. He was correct about the rate falling by half in 2020, however.

[1blackman1]

So you’re all saying that grocery bills won’t be going down. Or in other words, the Fox News and Republican crying that people can’t afford to feed their families will continue after Trump takes office. However, neither Fox nor republicans will voice that complaint as to not make it obvious that Trump’s claims prices will fall was just a lie.

[Yssup Rider]

Originally Posted by 1blackman1

So you’re all saying that grocery bills won’t be going down. Or in other words, the Fox News and Republican crying that people can’t afford to feed their families will continue after Trump takes office. However, neither Fox nor republicans will voice that complaint as to not make it obvious that Trump’s claims prices will fall was just a lie.

Most unabashed lie.

[winn dixie]

Originally Posted by Yssup Rider

Most unabashed lie.

Indeed

[txdot-guy]

[Salty Again]

... How 'bout we give Trump 6 (six) months to do so
before we complain... Seeing as Trump isn't on yet.

Some of the speculations here are making me laugh! ...

#### Salty