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CHANCES OF LOWERING THE PRICES OF EVERYDAY HOUSEHOLD ITEMS...

Trump can do several things to ease inflation. He can impound unspent money from the various Democrat spending programs and ask Congress to cancel others, reducing government spending.

He can also end the war on fossil fuels and encourage drilling for oil and natural gas, hopefully increasing supply and lowering the price. Since fossil fuels are utilized in almost every part of our economy, lowering the price of fuel, fertilizer, and petrochemicals helps reduce the cost of nearly everything else. Once inflation is under control, the Federal Reserve Board can lower interest rates.

Unlike Joe Biden, Trump has maintained cordial relations with most world leaders. The key player here is Prince Mohamed bin Salman, the leader of Saudi Arabia. If Trump can persuade MBS to increase Saudi oil production, prices will decrease faster than if the U.S. tries to do it alone. This could also reduce the influence of Iran in the Middle East, which is something the Saudis may support.

Another tenet of Trump’s economic policy is using tariffs or import taxes as part of economic policy. He clearly understands the power of money. Why use military force when you can use financial power to get what you want? The one thing you don’t want Trump to have when negotiating a deal is leverage. With tariffs, he can control access to the world’s richest commercial market, the United States, which means he has tremendous leverage.

Critics say tariffs will raise prices and fuel inflation. However, that occurs only if they are implemented. The threat of tariffs is usually enough to get other countries or businesses to do what Trump wants, including removing their tariffs on our products. He plans to reduce the business tax rate to 15% and then threaten tariffs to persuade businesses to manufacture products in the U.S. and rebuild our industrial base.

I would rate the probability of reducing prices at 50%, rebuilding the economy at 90%, and levying tariffs on someone at 99%.