The so-called tariff wars were supposed to cause prices to skyrocket. At least that is what the “experts” like Wall Street analysts, pundits and other financial overseers said. This does not include the talking bobbleheads on TV. They prostrated themselves at the feet of the Democrats to help them “get back in power.”
So, what is happening with consumer prices? This is a MOAB on the legacy media. Prices on critical consumer goods that matter most are dropping. The rate of inflation dropped to a four-year low in April. Overall consumer prices increased 2.3% from a year earlier.
The numbers inside the numbers are better. Meats, poultry and eggs dropped 1.6% overall. The price of eggs dropped 12.7% for the month. [SEE TABLE 2] Fuel Oil dropped 2.6%, propane dropped 4.7%. If it’s a food product grown and harvested in America, the price dropped.
Food items that are critical to the average American family all dropped in price. The reason is simple. Energy prices drive farm prices and prices in the total food supply chain. The energy prices have dropped substantially since President Trump took office. These reduced costs will continue to have a knock-on effect later in the food production cycle as farmers pay less for fertilizer, fuel and other necessary items. The fall harvest should see more reductions in prices.
As greater numbers of illegal aliens leave the country (one way or another), the pressure on housing costs should diminish. Of course, with housing, the market is always local. Significant reductions in prices have already hit the DC market as the need for fewer federal employees is being felt.
So, in a few short months, just a bit more than 100 days, we are beginning to see the promises made being promises kept. I am reminded of Obama’s “Magic Wand” speech.
Did Obama know how to help the economy? I would doubt it because there were very few people in his administration with any kind of business background or sense. Obama depended on Marxist/Socialist types to provide info on the economy. And Socialism has failed everywhere it has ever been tried.
Just because one person (in this case Obama) did not know how to bring jobs back, doesn’t mean it cannot be done. PDJT is a lot more competent on economic matters than any President in my lifetime. The real magic wand is to get government out of the business cycle.