That is all true, but when it comes to how most people vote, it isn’t about sound economic theory, it’s about perceptions, expectations and emotions. Prices aren’t likely to drop back down to where they were 4-5 years ago. But even if they remain relatively stable, it will probably take some time for people to think of the current prices as normal and not inflated.
That is all true, but when it comes to how most people vote, it isn’t about sound economic theory, it’s about perceptions, expectations and emotions. Prices aren’t likely to drop back down to where they were 4-5 years ago. But even if they remain relatively stable, it will probably take some time for people to think of the current prices as normal and not inflated.
The only way forward is to raise wages to match the new prices. And then hopefully try to prevent undue inflation in the future