Monday, February 17, 2025
Inflation
The downside to Trump’s economic policies will be inflation. His policy is in five parts, lower taxes, maximum energy creation, fair tariffs, reshoring and reduce regulations. As the new industrial base doubles and is built using the latest technology including AI, the productivity will match the increase in wages but wages will lag behind early on and thus inflation. The only early way to reduce prices is lower cost energy but that will not match inflation in the early years and prices will rise. During the upcoming mid term elections expect inflation to be an issue.
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