President Donald Trump has no excuses to make for low inflation or affordability or anything concerning the economy. His first-term record of strong growth and barely minimal inflation was so vastly better than Joe Biden to begin with. And now, because of a couple of individual food prices, Democrats and the lefty media are somehow trying to label Trump as an inflationist.
Here are just a couple of numbers. Mr. Trump has been in office for 8 months of CPI reports. Grocery prices have risen at a 2.1% annual rate. That’s all. Now some prices jump up, like beef and eggs temporarily, but then they come down with policy adjustments. And meanwhile, a bunch of other grocery prices will come down on their own. It’s the nature of the indexes, if you pay more for one thing, you’re going to pay less for another. When Joe Biden was President, grocery prices increased 5.4% per year at an annual rate. Cumulatively, they increased 23%.
As for Mr. Trump’s 8 months? His cumulative grocery price jump is 1.4%. That’s why I say he has nothing to apologize for. Meanwhile, already typical family wages for working folks have increased over 4%. That is twice the rate of grocery prices under Trump. And even significantly ahead of the overall inflation rate of 2.5% annually. So let me get this right, grocery prices exploded under Biden. Total grocery prices have barely budged under Trump, despite a couple of outliers like beef and eggs.
Wages are rising faster than prices under Mr. Trump. But when groceries rose 23% under Biden, prices rose roughly $3,300 higher than wages. So real wages collapsed under Mr. Biden because prices were higher than wages. Now Trump’s turned this around by a third improvement of wages above prices. But it’s just the beginning. His program of tax cuts, deregulation, drill baby drill, and reciprocal free trade is in fact already working.
Supply side growth with lower inflation is the key to affordability and prosperity and frankly it’s the key to a hundred other good things.
His first quarter, which ended in June, GDP up 3.8% at an annual rate. The Atlanta Fed is now forecasting Mr. Trump’s second quarter ending in September to increase by 4.1% at an annual rate. Those are big numbers.
That’s why Democrats shut the government down for the longest time in history, because they were intent on sabotaging Mr. Trump’s successes. And by the way, the public didn’t like it one bit. Not one bit. As it turns out, the approval for the GOP position was better than the Democratic by over 10 percentage points.
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