Cavuto Schools Sununu on Inflation: ‘You Don’t Just Add Them Up’
(Screengrab via Foxnews)
During a Thursday afternoon broadcast on Fox News, host Neil Cavuto gave New Hampshire Governor Chris Sununu a lesson on inflation after Sununu suggested that the effects of inflation are cumulative over time.
While discussing the rising cost of living, Sununu argued that voters are more likely to focus on the price hikes experienced during President Joe Biden’s term rather than the recent improvements in the economy. “They are going to look at what’s happened over the last 4 years – That’s where you are looking at 25, 30, 35 percent inflationary and cost increases on a lot of things,” Sununu claimed.
Sununu also expressed his belief that if former President Donald Trump can stay disciplined on the campaign trail, he will win the election in November. However, he warned, “As soon as he goes off tangent, that’s where he’s letting Democrats take the election that should be his by a landslide.”
Cavuto, however, was quick to challenge Sununu’s inflation figures. He asked the governor to clarify the 35-percent figure, questioning, “What’s that?” Sununu explained, “People will look at the cost of living over the life of the administration – so that’s 10 percent inflation, 2020 or 2021, another 12 percent, another 7 percent, another 4 percent… It’s cumulative, it keeps adding up.”
At this point, Cavuto interrupted, correcting the governor’s understanding of inflation. “But it doesn’t,” Cavuto said, talking over Sununu. “I know it looks that way, but it doesn’t. It’s the rate of increases going — I don’t mean the … — you’re right the inflation is weird, but the rate of increases is slowing down. You don’t take these increases and just add them up.”
Cavuto’s correction highlighted a common misconception about inflation, where the rate of increase in prices is often misunderstood as a cumulative total over time. In reality, while prices may rise year over year, the rate of inflation is not simply a sum of those increases but rather a measure of how much prices are rising or falling within a specific period.
The exchange served as a reminder of the complexities of economic discussions and the importance of accurately understanding and communicating the nuances of issues like inflation, especially in a politically charged environment.
