HeelYeah2012
Esteemed Member
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- 602
When talking about how far a dollar stretches, I think that term is generally used to talk about the net impact of how much money someone is making less what they’re spending on goods. In other words, it encompasses both wage growth and inflation. Otherwise yes you’d be right that taken literally, any 0.1% inflation would make you say your dollar “stretched further” under the predecessor.Well, yeah, it is Rachel -- so she has tendency to omit certain facts (and is not a business reporter by any means).
But the idea that the dollar stretched further under Trump? Unless you have deflation, the dollar always stretches further under the predecessor. That is how inflation works. As someone with a financial degree, you surely understand that.
The point you are leaving out is that wage growth has been massive under Biden, much more so than under any recent administration. And wage growth has out paced inflation for the last year. Sure, there was a brief spike of high inflation in the US in 2021 and 2022 -- albeit not as high in the US as in most wealthy nations. But at this point, in October 2024, the economy is as strong as it has ever been. High GDP growth, low unemployment, low inflation, stock market at an all-time high. Any "business decision" would want that to continue.
Edit -- the parallels to Reagan's first term are striking.
To put it a different way - more middle class families felt they were getting ahead under Trump than they do under the current administration.
Obviously you are smart enough to know that just because inflation has now normalized a bit, people’s salaries haven’t caught up to the massive inflation we were seeing a couple years ago. Current year over year inflation might be 2-3% but it’s 2-3% on top of a crazy high number that was hurting a lot of people who live paycheck to paycheck. The 3-4 year percentage price increases are still crazy, especially for groceries.
And that’s why Trump still has a puncher’s chance to win.