When will republicans claim the economy is booming?

Trump gets the benefit of inheriting two very strong economies. He'll screw this one up, too.

 

Agree. His tariffs and massive deportations if he does implement them are almost certain to trigger inflation. If Trump and Congress implement Elon Musk's draconian budget cuts the net result will be a major recession.

 

Military? I have no problem with a bigger better military, but NOT the useless pencil pushers in DC... We need to reduce the fat there.

 

Uh yeah, that's how inflation works. Wages aren't going back down either. For prices to go back down to what they were in 2019, wages would have to go back down to their level in 2019 as well. Then, instead of prices rising, you be screaming about wages dropping.

 

When real wages start rising above the rate of inflation and gas is below $2.50 a gallon.

I will agree with you that Biden is leaving Trump an economy that is in a good position.

 

Real wages aren't going to start rising above the inflation rate.

 

When will Democrats claim that Biden has the S&P500 booming, since Tuesday, because of Biden ?

*scroll down

 

Also adding that the only time prices actually drop is when there is a major recession and a significant increase in unemployment. The last time prices dropped was in 2009 when the unemployment rate averaged well over 9%.

 

They were in laye 2019.

 

I don't think you understand what 'real wages' means.

 

Well wages have outpaced inflation. Real wages have not. For real wage growth to outpace inflation, nominal wages would have to grow more than twice the rate of inflation.

 

That situation would result in 0% growth in real wages with prices and nominal wages each going up 25%.

 

Yeah. I was just making the point that for 'real' wages to rise faster than inflation, nominal wages would have to rise at least twice the rate of inflation, since inflation is in the denominator of the real wage calculation.

 

The claim was 'real' wages growing faster than inflation, not nominal wages. If inflation doubles, nominal wages would have to quadruple for real wages to double.

If you make $20 per hour and a widget costs $20 you can buy 1 widget with an hour's worth of work. if widgets rise to $40 you need to make $40/hr to buy one. Inflation rose 100%, nominal wages rose 100% and real wages remained unchanged. In this situation, for real wages to grow at the same rate as inflation (a 100% increase), you'd have to start making $80/hour, so you can now buy 2 widgets for an hour's work instead of 1.