Americans have had enough of rising prices. Groceries are up 25% since 2020. Housing prices have jumped nearly 30%.
The average new car now costs over $50,000. Add to that higher utility bills, child care, and health insurance, and it’s no wonder voters made inflation a major issue in the 2024 election.
President Donald Trump won partly by promising to bring prices down. But a year into his second term, 59% of Americans still blame him for high inflation, according to a Washington Post-ABC News-Ipsos poll.
He recently tried to bring relief by rolling back some of his own tariffs on products like bananas, beef, coffee, and cocoa.
So when The Washington Post published a piece titled, “Why You May Not Want Lower Prices As Much As You Think You Do,” it sparked a wave of criticism online.
David Sirota, journalist and author of Master Plan: The Hidden Plot To Legalize Corruption In America, reposted the article with the comment, “What stage of billionaire media is this?” Many saw the article as tone-deaf. But was it?
The Economic Warning Behind Falling Prices
The article argues that falling prices aren’t always good. In fact, they can be dangerous.
Economists say broad price drops usually mean bad news.
“As terrible as inflation is, that is really undesirable,” said Matt Colyar, an economist at Moody’s Analytics, referring to the kind of recession that deflation can trigger.
While some goods like eggs or gas can dip due to market swings, most prices don’t drop unless demand crashes. That often only happens during mass layoffs or a major downturn.
Francesco Bianchi, head of the economics department at Johns Hopkins University, said, “If wages stay high but the price of goods fall, companies won’t make enough profit to pay their employees.”
That dynamic, he added, could “trigger a recession—and then the recession creates even more expectation for lower prices.”
Columbia Business School professor Laura Veldkamp warned that even the expectation of falling prices can cause people to stop spending. That stalls the economy.
“If I thought that was going to cost less tomorrow, why would I buy it today?”
Why Prices Stay High
Most companies are unlikely to cut prices even if tariffs disappear. According to Bianchi, retailers would rather hold prices steady than risk dropping them and needing to raise them again.
“You’re not going to see your grocery store lowering their own prices,” he said.
Some economists say the government could help lower costs in big-ticket areas like housing and health care. That would require major policy shifts, like relaxing zoning laws or expanding public health options.
Lindsay Owens, who leads the progressive group Groundwork Collaborative, doesn’t call for deflation either.
“If we’re in a position where we start to see deflation, it’s because things are going seriously, seriously, seriously wrong [and] people are really, really broke.”
Instead, she supports policies that raise incomes, cap rent, subsidize child care, and make public services more accessible.
As she put it, “Some of how things become more affordable is you get some more income.”
A Post-Crisis Economy
The article also points out that the pandemic changed the economic landscape. The U.S. spent big to avoid a repeat of the 2008 crash. That spending helped trigger inflation, but it also saved the economy from collapse.
“We got a lot of inflation. That’s of course a problem for many households. But it’s also true that we dodged a bullet,” Bianchi said.
Veldkamp called the Fed’s response to inflation “the most successful inflation stabilization in U.S. history,” noting that inflation slowed without causing a recession.
Is This Take Controversial?
So is the Washington Post’s take ignorant or insightful? It depends on how you look at it. On one hand, it goes against common sense; most Americans want relief from rising costs.
On the other hand, economists warn that forcing prices down could result in something far worse: a recession.
Still, the article struck many as insensitive. People struggling to pay rent or buy groceries might see this message as dismissive of their pain.
Even if the economic logic checks out, the timing and tone sparked backlash. As David Sirota asked, “What stage of billionaire media is this?”
This kind of argument is bound to stir controversy. Critics say it reflects the interests of media owned by the wealthy. Supporters argue it’s simply explaining uncomfortable economic truths.
Either way, the reaction shows how emotionally charged the topic of inflation remains.
That emotional weight reflects the very real pressure families feel day to day. Lower prices, done carefully, could ease daily burdens without tanking the economy, offering some relief to those who need it most.