The Politics of Inflation

It should come as no surprise to hear that politics can play a role in a person’s economic outlook.

Take inflation. Republicans, as a group, expect prices to rise 2.4 percent over the next 12 months. Democrats expect 4.7 percent.

That's a big gap for two groups looking at the same economy. 

Psychologists call it “motivated reasoning.” It's the tendency to arrive at the conclusion that feels most consistent with what a person already wants to believe.

Here's the thing: inflation optimists and pessimists are both letting their politics do the math for them. 

It’s also a good reminder to stay focused on the strategy we created as the 2026 mid-term elections draw closer. 

^{University of Michigan, FundStratDirect, August 2026}