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1796 points koolba | 1 comments | | HN request time: 0.252s | source
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drawkward ◴[] No.42063854[source]
It's the economy, stupid:

-Inflation is not prices; it is the rate of change in prices. Low inflation doesn't imply low prices. -Aggregate statistics don't necessarily explain individual outcomes.

The Dems failed on this count massively, and have, for maybe the last 40 years, which is about the amount of time it took for my state to go from national bellwether (As goes Ohio, so goes the nation) to a reliably red state. This cost one of the most pro-union Senators (Sherrod Brown) his job.

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UncleOxidant ◴[] No.42066822[source]
> The Dems failed on this count massively

What was their failure here? The failure to explain to the economically illiterate that while inflation is now about where it was prior to covid that prices won't be going down (unless there's some sort of major recession leading to deflation)?

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ComplexSystems ◴[] No.42067493[source]
The failure is in this very common exchange

Average voter: I can't afford groceries at the store. Inflation sucks.

Response: Actually, here is the correct definition of "inflation." As you can see from the correct definition, inflation rates are now good! Hopefully this helps you understand why things will never get better.

What the average voter hears: I can't afford groceries. Your solution to this problem is to reframe the current situation as "good." I still can't afford groceries.

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crazygringo ◴[] No.42067909[source]
Where are you getting that "response" from? Here's a more accurate exchange:

Average voter: I can't afford groceries at the store. Inflation sucks.

Response: I know, inflation was caused by COVID and Biden got it back down. We had the best soft landing you could have asked for, Biden did a great job. But the original inflation wasn't under the president's control, it was a worldwide phenomenon, and you can't run it in reverse to go back to old prices.

What the average voter hears: I don't care about any of that. Prices were lower under Trump and he's a businessman, so I'll vote for him so prices go back down.

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EricDeb ◴[] No.42068034[source]
I think that argument might have worked better if there wasnt the impression Biden made it worse with covid relief/spending bills. Also Dems needed someone out there repeating their messages ad-nauseum and kamala was not a pete buttigieg type who will literally go on any show at any time.
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cjfd ◴[] No.42068328[source]
This is not just an impression, it is macroeconomics 101. If government goes into (more) debt and spends that money it increases inflation. Of course, all of this is not very easy. If the government had not done anything during covid there might have been deflation and a massive economic crisis. Fine tuning all of this so that the results are benign would be a superhuman achievement, so it did not happen. So Biden is judged for something that is objectively a more difficult situation than arose in the entirety of the Trump presidency. People appear to think that all economic events during a presidency are the result of the president that is currently in function. That is of course ludicrous. Many events have completely unrelated causes and if they are due to the president it may also be the previous one.
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1. ethbr1 ◴[] No.42069302[source]
> If government goes into (more) debt and spends that money it increases inflation.

If that spending creates an imbalance of money vs goods.

The problem with the COVID recovery is that goods availability declined, and as a consequence the economy would have taken a nosedive via compounding effects.

Unfortunately, flooding the market with money (which all countries, not just the US did) masked the problem long enough for supply to renormalize... but in the process ballooned the numerator while the denominator was still temporarily low.

Of course that's going to cause price inflation.

And then when supply returns to normal, of course companies are going to try to retain that new margin as profit, instead of decreasing prices.