The conventional wisdom on Wall Street has long been thatThe basic idea behind the claim that a unified Republican government would be more inflationary than a divided government is that GOP control would lead to a great fiscal expansion in the form of. More generally, many analysts believe that without an opposition empowered to rein in ambitious economic plans, parties tend to become fiscally irresponsible.
One reason to expect lower inflation under Trump and a Republican Congress is that these politicians are well-aware that high inflation was at the heart of the turn against Democrats in this year’s election. It’s clear that voters dislike inflation even more than they like low unemployment . So, politicians seeking to hold on to power—if you’ll excuse the redundancy—should be expected to beTrump’s critics often argue that his immigration policies would be inflationary.
Recent history certainly does not support the idea that higher levels of migration hold back inflation. Hundreds of migrants, mostly from Central America and Venezuela, set out in a U.S.-bound caravan on the outskirts of Tapachula, State of Chiapas, Mexico, on July 23, 2024, heading towards the United States.
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