Exactly. It is reactive to the economy, and here is where we go our separate ways. I believe the people drive the economy, and I think that you believe it starts at the top. Good choices in our lives are evident regardless of who is in office.
That’s my humble take.
Have you programmed a PID loop before? Do you understand how to trim Gain.?
The economy works in very similar ways.
I can only explain this to you with my own factual personal business and how severely it is affected by the Federal Reserve AKA known as the Administration.
January 2020, we could do all the cabinetry in an average 2,200 sq ft home new construction for around $11,000.
My top of the line cabinet manufacturer had a 7 week delivery from date of order.
Intersect rates set by the Fed allowed for mortgage rates as low as 2.5%
They remained there long enough for a major housing market boom.
By mid 2022, that same cabinet manufacturer had so much business, his delivery was now 28 weeks from order date and he kept raising his prices every couple of months.
I lost all my average performing cabinet designers, as they wanted massive salary and commission increases, as there was demand for them everywhere. I kept the good ones by paying up to 35% more.
Fast forward to today, the Fed increased rates several times, mortgage rates are up to 8%. Some of my old designers are unemployed, asking for their jobs back.
My cabinet supplier’s lead time is now 6 weeks instead of 28.
Prices have not gone down, the cabinets we could do for an average home at $11,000, in 2020, now costs $27,000.
Supply and demand is a direct result of the cost of money and how much money the Fed prints.
What Biden and the Dems are doing is fooling the uninformed public, who are not financially acute, by telling you how much the economy grew, because you are now spending 27k rather than 11k, for the same thing, and some fools are stupid enough to believe them.