Yes 2% is the usual inflation target, so getting it down to that level constitutes defeating inflation.
But the layperson doesn’t know that. When the average person hears that inflation has been defeated, they assume that means prices are going to come back down. I think it’s understandable why people think that: If inflation means prices go up, then the end of inflation must mean that prices go back down. Of course, that’s not the case. For reasons most people don’t understand, prices must continue to go up every year, albeit preferably at a rate the experts consider manageable. You can try to explain this to people but they might not be receptive to being told that prices are just going to keep going up, forever, and it has to be that way because of some complex economic concepts that are beyond their understanding. It’s honestly kind of depressing, being hit with the reality that you’re always going to be playing catch up with increasing prices.
Honestly, I can accept the inflation issue of prices never truly going down, but when seemingly very little is done to help offset them you start having issues. Add to that most economists loudly broadcasting that the economy is reaching new highs while a lot of middle class households have to pay more of their earnings on housing and food, and you are just sowing a lot of discontent. That is largely my issue, as irrational as it might appear at first glance to be angry with an article just saying that inflation has decreased from its highs.
and you are just sowing a lot of discontent. That is largely my issue, as irrational as it might appear at first glance to be angry with an article just saying that inflation has decreased from its highs.
I don’t think it’s irrational at all. I think it’s perfectly understandable. The typical, out of touch economist, however, doesn’t understand. Their formulas, theories, and models tell them that everything is working perfectly, or at least as well as can be expected, and they’re really not interested in hearing any evidence to the contrary (like the lived experiences of actual human beings).
But the layperson doesn’t know that. When the average person hears that inflation has been defeated, they assume that means prices are going to come back down. I think it’s understandable why people think that: If inflation means prices go up, then the end of inflation must mean that prices go back down. Of course, that’s not the case. For reasons most people don’t understand, prices must continue to go up every year, albeit preferably at a rate the experts consider manageable. You can try to explain this to people but they might not be receptive to being told that prices are just going to keep going up, forever, and it has to be that way because of some complex economic concepts that are beyond their understanding. It’s honestly kind of depressing, being hit with the reality that you’re always going to be playing catch up with increasing prices.
Honestly, I can accept the inflation issue of prices never truly going down, but when seemingly very little is done to help offset them you start having issues. Add to that most economists loudly broadcasting that the economy is reaching new highs while a lot of middle class households have to pay more of their earnings on housing and food, and you are just sowing a lot of discontent. That is largely my issue, as irrational as it might appear at first glance to be angry with an article just saying that inflation has decreased from its highs.
I don’t think it’s irrational at all. I think it’s perfectly understandable. The typical, out of touch economist, however, doesn’t understand. Their formulas, theories, and models tell them that everything is working perfectly, or at least as well as can be expected, and they’re really not interested in hearing any evidence to the contrary (like the lived experiences of actual human beings).