Part 2/8:
Johnson paints a dire picture of the economic struggles faced by everyday Americans, particularly those in lower-income brackets. He notes that while inflation has plagued the discussions, it is the stark inequality—where the affluent shield themselves from rising costs—that lies at the root of the nation's economic malaise. As a nation of debtors, Americans find themselves trapped in a cycle of borrowing against future earnings, creating an environment where deflation, instead of inflation, becomes a vehicle for crisis.
Despite the challenges, Johnson recognizes potential shifts in policy under the new Trump administration, particularly regarding wage increases. However, he cautions that the dual objectives of lowering prices while raising wages are unlikely to coexist successfully.