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How many charts have economists and analysts, myself included, presented that illustrate how the health of the American economy was far superior to that of Europe? And how many official inflation statistics have we not repeatedly cited, demonstrating that pricing pressures were gradually easing with each passing quarter? Furthermore, why have American media outlets—claiming to be cutting-edge and sophisticated—failed to inform their citizens that the situation in the United States was clearly more favorable than what we are enduring in Europe? Those of us who experienced the inflationary periods of the 1970s understood that inflation brings various troubles and disturbances.
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In truth, real wage increases (adjusted for inflation) had little psychological impact because, in both the United States and our own nation, the public tends to disregard the official statistics released by the governments. If there is a macroeconomic lesson to draw from last week’s American presidential election, it is that inflation is a cumulative experience—felt daily, monthly, and with every shopping trip. Political scientists need to grasp that citizens are indifferent to statistics from INSEE or the US Bureau of Statistics; rather, they form their own perceptions of high prices while shopping and are unconcerned with what experts declare. In essence, a consumer does not equate to an economist.
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Another crucial lesson: aside from a severe economic crisis and depression, inflation impacts everyone, whereas unemployment only affects a fraction of the population. For instance, despite the massive crisis of 2008, 90 percent of Americans retained their jobs. Therefore, we must collectively acknowledge a new reality that may challenge certain established beliefs: Western citizens would choose slower growth if it meant controlling inflation.
In Other Words: Price Stability Takes Precedence Over Employment!
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A third lesson for future candidates in upcoming elections, according to numerous American analysts dissecting the recent election results, is that inflation is blamed on the President and the Government, while growth and unemployment are phenomena beyond their control, influenced by cycles and major trends linked to globalization.
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The US economy has been performing exceptionally well: three percent growth over the last nine quarters and substantial international liquidity flowing into the country! Ultimately, the credit will go to the Musks, the Bezos, and entrepreneurs of all sizes—not to the administration. As reported by ABC News, inflation has significantly decreased in the past two years, now stable around the Federal Reserve’s target rate of 2 percent. Even so, this progress has not mitigated the price surge that began during the pandemic. Since President Joe Biden assumed office in 2021, consumer prices have skyrocketed by over 20 percent.
Meanwhile, inflation? Completely attributed to Biden and his allies. Take note.
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This article was originally published on michelsanti.fr
To learn more about the author, Michel Santi, and to view his exclusive opinion articles, visit his website here: michelsanti.fr
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