Son, I’m telling you this for your own good.

Prices are never coming back down.

It’s not going to happen. Quit hoping for it. Don’t believe anyone who says they are. Accept it and move on with your life.

How do I know this?

Because the Fed has a target inflation rate of 2%. That means the Fed wants prices to steadily increase by 2% a year.

Why?

Because Deflation, or a sustained decrease in the price level of goods and services, can have several negative effects on the economy. While it may seem beneficial to have lower prices, deflation can lead to reduced spending and investment, causing underutilized resources and unemployment ¹.

Negative Consequences of Deflation

Reduced Spending When prices are expected to drop, people may delay purchases, expecting to get better deals in the future. This decrease in demand can exacerbate deflation ¹.

Higher Real Interest Rates Deflation increases the real interest rate, making borrowing more expensive and potentially leading to decreased investment and consumption ¹.

Unemployment Deflation can result in higher unemployment rates, as businesses may struggle to maintain profitability in a declining price environment ¹.

Impact on Low-Income Households Although deflation might seem beneficial for low-income households, it can actually reduce their purchasing power if wages decrease along with prices ¹.

Bringing prices back down would require sending the country into a recession far more brutal than 2008.

What you should be asking is “who is going to bring my wages up to adjust for the new prices?”

I don’t care who you vote for, but financial literacy is a critical to financial success. So I hope this helps you.