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During the previous presidential campaign, the former president courted voters with promises to lower prices starting on day one. However, once he assumed office, there was minimal attention to affordability issues. This shifted after inflation-weary voters expressed dissatisfaction at the ballot box. Shortly thereafter, his team launched a slapdash campaign to address living costs. Unfortunately, this initiative is a disorganized endeavor—filled with absurdity, inconsistencies, unrealistic expectations, scapegoating, and misleading statements.

Out-of-Touch Assertions and Supermarket Truth

Just two days post-election, the president began his cost-reduction push with a poorly received remark: “Food prices are way down. Everything is way down… So I don’t want to hear about the cost of living.” This comment from billionaire Trump—often mingles with fellow billionaires—revealed a lack of empathy for everyday citizens facing difficulties every time they go the grocery store. Essentially, he dismissed their concerns as trivial, implying they were mistaken about price levels.

This statement that everything was “way down” proved absurdly obtuse and inaccurate. How could all costs be decreasing when the taxes he imposed were increasing prices? Recent data indicate banana prices increased nearly 7% in the last twelve months, beef prices went up 14.7%, and coffee prices jumped 18.9%—partly because of punitive tariffs on Brazil’s coffee and beef. Between January and September, costs increased in five of the six main grocery groups tracked by the Consumer Price Index, such as animal proteins (up 4.5%), non-alcoholic beverages (up 2.8%), and produce (up 1.3%).

Contradictions and Falsehoods in Economic Statements

In spite of the evidence, Trump continues to push his misleading narrative about lower costs. Since election day, he has stated there is “almost no price increases,” insisted “prices are way down,” and argued “it is far less expensive under Trump than it was under sleepy Joe Biden.” These statements ignore the fact that prices overall have clearly increased since Biden left office. Currently, price growth is at a 3% annual rate, which is 50% higher than the Federal Reserve’s 2% goal. In another falsehood, he boasted that gas prices had fallen to nearly $2 a gallon, despite government figures show they average $3.19.

Confronted by actual conditions and declining opinion polls, advisers evidently cautioned that his “costs are falling” rhetoric portrayed him as disconnected from typical Americans. Many voters are angry about rising costs following assurances of decreases. In response, aides suggested one quick fix: reduce some of Trump’s beloved tariffs. This sensible idea clashed with the president’s unrealistic claim that new tariffs wouldn’t raise prices for US consumers.

Suggested Solutions and Their Potential Effects

With some tariffs being rolled back on several food items, Trump will likely claim that he has cut prices once these products start declining in price. This would be like an arsonist boasting for putting out a fire that he ignited. In another instance, while speaking McDonald’s executives, Trump declared that “we are in the golden age of America” and assured the audience that “costs are decreasing and all of that stuff.” Such statements come naturally for a wealthy individual to make, but seem insincere to countless households who are struggling—particularly when many risk cuts to nutrition assistance or rising insurance costs.

Per a survey conducted last fall, three-quarters of respondents believe economic conditions are fair or poor, while just a quarter consider them good or excellent. A separate survey found that 61% of Americans feel Trump’s policies have “worsened economic conditions” in the country.

Financial Truth and Proposed Measures

Scott Bessent, the president’s chief financial officer, recently disputed assertions of a prosperous era. He stated that far from booming, some parts of the US economy “are in recession.” Industrial production—a priority for the administration—seems to have shrunk for eight months in a row and lost around 33,000 jobs this year. Citing these challenges, Bessent urged the central bank to cut interest rates—an action that could help affordability.

In response to widespread concern about affordability, the president proposed a direct payment of “a dividend of at least $2,000 a person” excluding “the wealthy.” For many households in need, it seems like manna from heaven, but it is unlikely that lawmakers—concerned about large shortfalls—will approve such a plan. The scheme would likely increase federal spending, increase borrowing costs, and potentially drive prices higher by putting more money into consumers’ pockets.

A further proposed solution for affordability involved creating half-century home loans, based on the idea that this would reduce monthly mortgage payments. But, the truth is that such lengthy loans would do little to reduce installments—often reducing them by a small amount per month. The drawback is that these mortgages could more than double the total interest homeowners pay and hinder their accumulation of equity.

Blaming the Previous Administration and Financial Outlook

As part of their cost-cutting effort, the administration have again pointed fingers at the previous president for economic problems, including increasing costs. Spokespeople stated they “inherited a disaster from Joe Biden” and were “addressing Biden’s inflation.” This is unfounded and inaccurate claims. Actually, Biden handed over a robust economic situation, with inflation way down, economic growth strong, and unemployment low. But, the current administration’s actions—particularly import taxes—have resulted in an difficult situation, pushing up prices and reducing economic output.

Per Mark Zandi, chief economist at a research firm, 22 states are already in recession, with their conditions worsened by the administration’s trade policies. Zandi worries that if key regions like California and New York tumble into recession, the nation could face a broad economic slump. During recessions, consumers typically have less money to spend, and price increases often falls. Sadly, given the highly-touted cost initiative likely to do little to hold down prices, his most effective “tool” for improving living standards might prove to be triggering an economic contraction—something that hard-pressed households cannot handle.