Why are consumers so negative on a good economy? It’s the inflation, stupid.
Why are consumers so negative on a good economy? It’s the inflation, stupid.
Republicans are frustrated that the public has such a sour view of the economy, especially when growth is accelerating and we may be on the cusp of what some are calling America’s economic “golden age.”
Rising prices are the ongoing problem, and the most recent inflation readings did nothing to turn around voters’ gloom. A hotter-then-expected Consumer Price Index and Producer Price Index, delivered in recent days, could not have come at a worse time for the Republican Party.
The latest report indicated that inflation, instead of moderating, actually accelerated last month, jumping 0.6 percent month-to-month after rising 0.4 percent in August. More than half the increase, not surprisingly, was from higher energy prices, which rose 5.2 percent from the previous month. Core prices, excluding energy and food, gained 0.3 percent, as they did in August.
Given that Democrats have made affordability the centerpiece of their argument for taking back control of Congress, they seized on the news with glee.
The House Democratic Caucus posted on X, “Trump promised to lower costs and end inflation on day one. The exact opposite has happened. This president has been a total failure.”
Consumer pessimism about the economy, brought on by higher-then-expected inflation, has translated into poor approval ratings for the president and the Republican Party, dimming chances that Republicans will hold onto their majority in the House and the Senate in the midterm elections next month.
That isn’t the norm; typically, Republicans score higher than Democrats on questions like “Who do you trust more to handle the economy?” Not today. A recent Washington Post headline captures the moment: “Democrats hold big edge on economy in key poll for first time since 2012.” The Post writes, “A majority of adults, 51 percent, chose Democrats when........
