When statements are made that contradict economic facts, arithmetic, or basic principles, rapid response is needed to help the reader.
Recent examples of objectively false or economically incoherent statements include:
- Interest rates should be cut because the economy is hot: This reverses the fundamentals of monetary policy. In a heated economy, central banks typically raise rates to prevent overheating and inflation.
- Exporting countries pay for import tariffs: This claim is not only misleading—it’s false. Tariffs are paid by the importing country’s businesses and consumers, not foreign governments.
- Conflating price levels with inflation: Inflation refers to the rate of change over time, not static prices. Equating the two confuses readers and misrepresents economic conditions.
- Gasoline was under $2 per gallon in 2020: A reminder is needed that prices plummeted during an unprecedented global recession driven by COVID-19—a situation not reflective of ordinary market dynamics.
- “Inflation is under control at 3%”: No—it’s not. Do the math. The Federal Reserve’s target is 2%, and 3% is 50% higher than that benchmark. While 3% may feel modest compared to recent spikes, it still represents a persistent erosion of purchasing power and a failure to meet policy goals.
When voters are polled, they put affordability -- aka Kitchen Table issues -- at the top of their list of concerns. They deserve straight talk and accurate statements.
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