Friday, December 13, 2024
Inflation
The exit polls indicate that high prices were a major concern and these will not come down overall. Increasing energy production will bring down the price of transportation and that represents 12% of the cost of most consumer goods. Inflation is always going up with the exception of the depression years. People who voted for Trump thinking that prices will come down will be disappointed but with proper management prices may not rise as fast as expected in an economy that is experiencing rapid growth. With growth the increase in wages can offset some of the increase in prices which helps but that will be a challenge especially early on. As reshoring becomes the norm there will be upward pressure on prices due to wage/price inflation. Recently Trump has been saying he will bring down inflation where he used to say prices.
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