Every day of our lives, we’re one way or the other dealing with number. Either calculating the cost of making noodles or how many litres will fill up the car tank. Let me sincere, there’s a hidden force behind number making us change our wish list, update scale of preference and even go as far borrowing money from the bank.
Former President Donald Trump remains steadfast in his belief that he has the solution to combat inflation. He outlined a multifaceted strategy including: tax cut reform, increasing tariff on Chinese goods and other countries, increased production of oil and gas. He wants to reduce importation in America and also promote local production. But despite his confidence, there are growing concerns that he doesn’t fully understand the complexities of issue. However, there are various reasons why Trump’s approach to inflation may be doomed, including;
Inflation is a political affair
Trump needs to understand that reducing tax or increasing tariff on foreign goods wouldn’t necessarily reduce inflation. Inflation is a political charged and his policies would be analysed by both side of the aisle including his cabinet members and different stakeholders. He should remember that the impact of inflation on human endeavor, in increasing both cost of living and purchasing power.
As Sarah Jones aptly put it “inflation is like a silent tax on the middle class”.
The Human Cost of inflation
Inflation isn’t just an abstract idea, it’s a tangible barrier faced by diverse individuals. From the struggling single mothers to the small business owners trying to make a payroll. Inflation is a reflection of everyday struggle of ordinary Americans. We’re in a period of economic transformation and inflation is one symptom of a larger phenomenon.
Inflation is a complex and dynamic factor
So, what drives inflation? The answer is complex and multifaceted. Global trade tensions, demographic changes, and technological disruption to mention just a few. Trump’s administration had pledged to promote local production in diverse sector of the economy.
The truth is, inflation comes in various form and it’s a price that ordinary people often pay.
