Latest Krugman comments on Economy

[BootinUp]

One source of evidence is the New York Fed’s monthly Survey of Consumer Expectations. I usually follow that survey to track expected inflation, which remains fairly subdued. But the survey also asks consumers whether they expect their financial situation to be better or worse a year from now. Here’s the difference between the percentage who said better off and those who said worse off:

There has been a huge improvement not just since the worst of the inflation surge but even since late last year. We’re almost back to the optimism that prevailed in President Biden’s early months, before inflation took off.

Another source of evidence, albeit with less of a track record, is a survey conducted by The Financial Times and the University of Michigan’s Ross School of Business, which asks voters whether Biden or Donald Trump would do a better job of managing the economy. Earlier this year Trump had a double-digit lead; now it’s down to four points.

It’s still unlikely that the economy will be a net plus for Biden. But it may be much less of a drag than many expect (especially given falling gas prices). Which in turn means that the election may turn on other issues, like the Republican threat to birth control.

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[LetMyPeopleVote]

1. Statement from President Joe Biden on the May Consumer Price Index

Link to tweet

https://www.whitehouse.gov/briefing-room/statements-releases/2024/06/12/statement-from-president-joe-biden-on-the-may-consumer-price-index/

Prices are still too high, but today’s report shows welcome progress on lowering inflation, which was zero on a monthly basis in May and is down nearly two-thirds from its peak. Core inflation is at its lowest level since April 2021, grocery prices have fallen for four months in a row, and gas prices are below $3.50 on average across the country. Wages are rising faster than prices, and unemployment has remained at or below 4% for the longest stretch in 50 years.

I know many families are feeling squeezed by the cost of living, which is still too high. That is why I am fighting to lower costs for hardworking Americans by increasing rental assistance and building 2 million new homes; taking on Big Pharma to lower prescription drug prices; calling on grocery chains making record profits to lower grocery prices; and investing in affordable clean energy while record energy production is lowering gas prices now. Republicans have a different approach, one that cuts taxes for the wealthy and large corporations, allows special interest like Big Pharma and Big Oil to keep prices high, and “supercharges” inflation by imposing across-the-board tariffs. They’re fighting for billionaires on Park Avenue—I’m fighting for families like the ones I grew up with in Scranton.

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