During last year's race for the White House, the former president wooed voters with promises to reduce costs starting on day one. But, after he assumed office, he seemed to pay precious little focus to the cost of living. All that changed after inflation-weary voters delivered a rebuke at the ballot box. Within days, his team initiated a hastily assembled campaign to tackle affordability. Unfortunately, this initiative has proven a disorganized endeavor—filled with illogical claims, contradictions, magical thinking, blame-shifting, and misleading statements.
Merely 48 hours post-election, Trump began his affordability drive with a disastrous remark: “Food prices are way down. All items is way down… So I don’t want to hear about affordability.” These words from billionaire Trump—often mingles with other ultra-rich individuals—demonstrated a lack of empathy for millions of Americans who struggle every time they go the grocery store. Essentially, he ignored their concerns as unimportant, suggesting they were mistaken about price levels.
This statement about declining prices was highly misleading and inaccurate. In what way could all costs be decreasing when his cherished tariffs were increasing prices? Recent data indicate banana prices rose 6.9% in the last twelve months, the price of beef went up almost 15%, and the cost of coffee jumped 18.9%—in part due to import taxes applied to Brazilian products. Between January and September, costs increased in the majority of food categories tracked by the Consumer Price Index, such as meats, poultry, and fish (rising over 4%), drinks (up 2.8%), and produce (rising slightly).
In spite of the evidence, Trump continues to push his misleading narrative about affordability. Since election day, he has claimed there is “almost no price increases,” insisted “prices are way down,” and asserted “it is far less expensive under Trump than it was under his predecessor.” These statements ignore the reality that general costs have unarguably risen since Biden left office. At present, inflation is at a 3 percent per year, which is 50% higher than the central bank’s 2% goal. In another falsehood, Trump boasted that gas prices had fallen to around two dollars, even though official data show they are over three dollars.
Confronted by actual conditions and lower approval ratings, some Trump aides evidently cautioned that his “prices are down” message made him sound disconnected from typical Americans. Many citizens are frustrated about rising costs after assurances of reductions. In response, advisers proposed one quick fix: roll back certain import taxes. The logical move contradicted the president’s unrealistic claim that new tariffs wouldn’t raise prices for US consumers.
As some tariffs reduced on several food items, Trump will likely announce that he has lowered costs once these products start declining in price. This would be similar to a firestarter taking credit for extinguishing a fire that he had started. In another instance, when addressing fast-food leaders, Trump stated that “this is the golden age of America” and told the audience that “prices are coming down and all of that stuff.” These comments come naturally for a billionaire to make, but they ring hollow to millions of Americans facing hardships—particularly when millions face losing food stamps or skyrocketing health premiums.
According to a recent poll from October, three-quarters of respondents believe economic conditions are mediocre or bad, while only 26% consider them good or excellent. Another poll showed that a majority of citizens feel the administration’s actions have “worsened economic conditions” in the country.
Scott Bessent, the president’s top economic official, lately disputed assertions of a prosperous era. He stated that instead of thriving, certain sectors of the American economy “have contracted.” The manufacturing sector—a priority for the administration—appears to have contracted for eight months in a row and shed around 33,000 jobs since January. Citing these challenges, the secretary urged the central bank to cut interest rates—a move that could ease financial pressure.
Reacting to public dismay about living costs, Trump proposed a direct payment of “a payout of at least $2,000 a person” not for “high income people.” To numerous households in need, this sounds like manna from heaven, but it is unlikely that lawmakers—concerned about large shortfalls—will approve the proposal. This idea could increase federal spending, push up borrowing costs, and potentially fuel inflation by injecting cash into consumers’ pockets.
Another supposed fix for cost issues centered on introducing half-century home loans, based on the idea that this would reduce monthly mortgage payments. But, reality is that such lengthy loans would do little to reduce installments—frequently reducing them by a small amount per month. The drawback is that these mortgages could more than double the overall cost borrowers pay and hinder their accumulation of equity.
In their affordability campaign, Trump and his team have once more pointed fingers at the previous president for economic problems, including rising prices. Officials claimed they “faced a mess from Joe Biden” and were “addressing the prior administration’s price hikes.” These are absurd and untruthful claims. Actually, the former president handed over a strong economy, with low price growth, economic growth strong, and unemployment low. But, Trump’s policies—particularly import taxes—have created an economic mess, driving costs higher and reducing economic output.
According to an economist, lead analyst at Moody’s Analytics, 22 states are experiencing economic decline, with their conditions worsened by the administration’s trade policies. Zandi worries that if large states like California and New York tumble into recession, the US could face a broad economic slump. In downturns, consumers typically have less money to spend, and price increases often falls. Sadly, with the highly-touted affordability campaign likely to do little to control costs, his most effective “tool” for achieving increased affordability might end up pushing the nation into recession—something that hard-pressed households cannot handle.
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