Why is inflation hovering at 20 year lows?

Question

Is this another of the Presidents failures the Democrats like to talk about, or do they ever mention it?

Answer 1

Where on earth did you hear that fairy tale?

Answer 2

Funny you should ask this --

First, the single largest influence on inflation is the price of oil, and unless you think Bush controls that, you can't credit him for a low inflation rate (remember, inflation was extremely high just a year ago).

Second, the other large inflationary pressure is wages, so what you're really bragging about when you say inflation is staying low is the fact that wages are staying low. Profits are high, but wages are low (though starting to rise, as will the inflation rate). Not something I would brag about, if I were you.

Answer 3

Because for the past 20 years the Federal Reserve has carefully regulated the money supply to keep inflation low.

Answer 4

for the past 20 years the Federal Reserve has carefully regulated the money supply to keep inflation low

Answer 5

because it's hiding behind globalization.

with free trade, corporations are always looking to cut production costs... this means paying foreign workers as little as possible, in China, notably, India, and all over the world. Nations auction themselves off, lowering minimum wages, workers' rights protections, raising legal working hours, and relaxing pollution restrictions in order to get the business. This means corporations can control the final price of the product that goes to the American consumer, raising it when they want more profits, lowering it when they need to create more "consumer confidence". The U.S. workers, meanwhile, are losing jobs and their worth is lowering, reflected in stagnant wages which do not rise with inflation, the need to work more hours, relaxation of overtime pay regulation, and lack of benefits. And once the global economy bottoms out, or the foreign nations decide they need to start regulating industry to help its struggling workers, or even, such as in Venezuela's case, get rid of major private industries, the inflation which is hidden by lowering production costs will show itself.

Answer 6

it is because all those jobs in the arms industrie bush created.

Answer 7

I blame Bush!

Oh, sorry - what was the question again? Knee-jerk reaction.

Answer 8

oh yeah....things are just going great.