Terms of Trade: Did inflation take away the White House from the Democrats?
Hindustan TimesMost economic pundits think that it did. A separate analysis by the bank’s economists estimated the American Rescue Plan boosted inflation, excluding food and energy items, by 0.3 percentage point a year in 2021 and 2022”, it said. Consumer prices during Biden’s term have risen 20%, compared with 8% in Trump’s term…On Election Day, about 40% of voters said the economy was their top issue, far outstripping any other. Wall Street will want him to control inflation – it corrodes the value of financial assets – while the underclass believes that Trump’s mercantilist policy will resurrect manufacturing and jobs which the US has lost to the rest of the world over the past decades. That the elite Trump built his narrative against is a by-product of the historical economic trajectory of the US and the rest of the first world is a more complicated political economy story than the simplistic claim of inflation explains the 2024 results in the US.
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