Prices

The big issue for the upcoming election is prices and politicians are campaigning promising lower prices but how is not clearly explained. While the price of any individual product may go up and down overall prices go up. Inflation has averaged 3.5% since 1950. So, what can be done to buck the trend. Basic economics says that if you increase supply and/or decrease demand prices will fall. Increasing energy supply is now underway with coal, oil and natural gas. Interest rates have come down a half percent and scheduled for another quarter drop this December. New electric power plants are being built across the country but demand is increasing so there won’t be much change in the electric bill. New manufacturing facilities are being built across the country which means increases in productivity which will lower prices. If government tries to lower the effect of price increases by handing out benefits this will increase inflation and cause prices to rise. Anyone running for office with the promise to lower prices should be asked how they plan to do that.