Friday, November 28, 2025

Pirce pressures

While not much can be done to lower prices, some things can be done to offset the effect of higher prices. First, keep wages increasing faster than inflation which is currently the case. Keep transportation cost low which effects almost all products. Do this by keeping gasoline and diesel prices from rising by increasing the supply of oil which is now happening. Third, use government policy to lower regulations to encourage the growth of new manufacturing plants which use newer technology which increases productivity which puts downward pressure on prices. Have the Fed lower interest rates which helps lower the cost of money. The Fed has lowered rates by half percent these past few months and expecting another quarter drop this December. Increase labor force participation rate by reforming welfare and offering government aid for childcare. Raise taxes on the wealthy and lower taxes on corporations. Finally use programs to slow down the cost of healthcare which has risen by 121% since 2000 while inflation has only gone up by 86%. Growing the economy will bring in new revenues which the government can use to offset the cost of healthcare. The expanding economy from new investments, particularly foreign, will put upward pressure on inflation and proper use of AI can minimize that pressure.

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