Did you know there’s a connection between your voting preference and how much inflation you experience? It doesn’t seem like those things should be related, but a new study from some economists finds a definite link. Let’s check it out!
Here are Five Fast Facts on possible self-fulfilling prophecy about inflation:
- 🤔 It’s Real - When comparing metro area voting data to inflation data for 2022, metro areas where more Republican voters live actually have had higher inflation than places where more Democrats live. The Wall Street Journal did another study and saw the same thing at a state level. Conspiracy theory, you say…?
- 🤯 For Example - Compare South Carolina and New Hampshire. SC had the highest inflation rate since the pandemic began (prices are up almost 5%), and Trump got 56% of the vote. NH, on the other hand, had the lowest inflation (prices are up only 3.75%), and Biden got 54% of the vote there. This plays out across the country in many states. Is your mind blown yet??
- 😲 Professional Confusion - This is just another piece of the puzzle for economists to figure out. Which, it should be noted, they have not yet done. They’re still confused about why the economy should be great but most Americans disagree. Um, howzabout you get out of the spreadsheets and ask them?
- 🐔🥚 Expectations Drive? - This is one thing where feelings might actually influence fact. People always give the economy lower marks when their guy isn’t in the White House. Add to that the fact that when businesses expect more inflation, they raise prices to get ahead of it; similarly, workers who expect more inflation demand wage increases to compensate. Both of those contribute to inflation. Chicken, meet egg. Or vice versa. You get the point.
- 💡 Possible Explanations - Inflation is different for everyone and highly subject to any one person’s buying patterns, and this might be a possible explanation. Since the pandemic started, many people have moved from the Northeast to more Republican-leaning states in the South or Mountain West. There, the crazy cost of gas and skyrocketing rents – both of which factor heavily in inflation calculations – have really hammered people hard.
🔥Bottom line: It’s a crazy correlation but it’s been confirmed by multiple reputable sources. Even if we don’t understand it, that doesn’t mean it isn’t true.
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