WASHINGTON (AP) — President Donald Trump’s struggles with addressing the high cost of living may be giving voters a sense of déjà vu. Much like the president who preceded him, Trump is pushing a plan focused on creating factory jobs to boost the economy.
The Republican leader wants to lower prescription drug costs, echoing efforts by Democratic President Joe Biden. Both presidents have attempted to shame companies over price increases. Trump even echoes Biden’s 2021 claims that elevated inflation is a “transitory” issue that will soon fade.
“We’re going to be hitting 1.5% pretty soon,” Trump told reporters Monday. “It’s all coming down.”
Despite Trump’s repeated assertions that an economic boom is imminent, signs indicate that voters are growing impatient. His campaign promises to fix inflation instantly remain unfulfilled.
### Voters Growing Frustrated with Trump on Inflation
In recent elections, voters swung heavily toward Democrats over concerns about affordability. Meanwhile, Trump dismisses his weak polling on the economy as “fake” and has floated half-formed ideas to ease financial pressure.
He has promised a $2,000 rebate on tariffs and suggested extending the 30-year mortgage to 50 years to reduce monthly payments. On Friday, Trump scrapped tariffs on beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes, and certain fertilizers, acknowledging that these tariffs “may, in some cases” have contributed to higher prices.
However, experts like Bharat Ramamurti, a former deputy director of Biden’s National Economic Council, call these moves “gimmicky” and unlikely to significantly impact inflation.
“They’re in a very tough position where they’ve developed a reputation for not caring enough about costs, and the tools they have are unlikely to help people in the short term,” Ramamurti said.
He added that the Biden administration learned the hard way that voters are not reassured by promises of future income growth. “That argument does not resonate. Take it from me,” he said.
### How Inflation Affected Biden’s Presidency
Biden inherited an economy struggling to recover from the COVID-19 pandemic, which had closed schools and offices, triggered mass layoffs, and led to unprecedented government borrowing. In March 2021, he signed a $1.9 trillion relief package into law.
Critics argued the relief spending was excessive and could drive prices upward. As the economy reopened, shortages emerged in computer chips, kitchen appliances, automobiles, and even furniture. Cargo ships were delayed waiting to dock at ports, exacerbating supply chain issues.
Russia’s invasion of Ukraine in early 2022 further increased energy and food costs, pushing consumer prices to a four-decade high that June. The Federal Reserve responded by raising interest rates to cool inflation.
Biden sought to assure Americans the economy was strong. “Bidenomics is working,” he declared in a 2023 speech. “Today, the U.S. has had the highest economic growth rate, leading the world economies since the pandemic.”
Still, these arguments failed to sway voters. According to an August 2023 poll by The Associated Press-NORC Center for Public Affairs Research, only 36% of U.S. adults approved of Biden’s handling of the economy.
### Trump Might Be His Own Worst Enemy on Inflation
Republicans blamed Biden’s policies for worsening inflation. Democrats are now using a similar narrative against Trump.
Their argument: Trump’s tariffs have pushed prices higher for consumers; his cancellation of clean energy projects limits new electricity sources, contributing to rising utility bills; and his mass deportations have increased costs for the immigrant-heavy construction sector, making housing more expensive.
Biden officials point out that Trump took office with strong growth, a solid job market, and declining inflation near historic lows — only to reverse those trends.
“It’s striking how many Americans are aware of his trade policy and rightly blame the turnaround in prices on that erratic policy,” said Gene Sperling, a senior Biden adviser who also led the National Economic Council under Obama and Clinton. “He is in a tough trap of his own making, and it’s not likely to get easier.”
Consumer prices rose at an annual rate of 2.3% in April when Trump launched his tariffs, accelerating to 3% by September. While this inflationary jump was less severe than under Biden, the political fallout appears similar: 67% of U.S. adults disapprove of Trump’s economic performance, according to November AP-NORC polling.
“I think President Biden didn’t take this concern seriously enough in his first few months in office, and President Trump isn’t taking this concern seriously enough right now,” said Nathan Strain, an economist.
Strain also noted that both presidents have responded to inflation in “weirdly, eerily similar ways”—downplaying the issue, highlighting other economic indicators, and attempting to address concerns by issuing government checks.
### White House Bets on Policies to Tame Inflation
Trump officials argue that their combination of income tax cuts, foreign investment frameworks linked to tariffs, and changes in regulatory enforcement will stimulate factory growth and job creation. They say this could increase the supply of goods and services and help reduce inflationary pressures.
“The policies we’re pursuing right now are increasing supply,” Kevin Hassett, director of Trump’s National Economic Council, told the Economic Club of Washington on Wednesday.
Meanwhile, the Federal Reserve has cut its benchmark interest rates, potentially increasing money supply for investments. However, this move comes amid a weakening job market and persistent inflation above the Fed’s 2% target. Some experts worry that the size of rate cuts Trump advocates could reignite inflation.
### Time Might Not Be on Trump’s Side
Research by economist Ryan Cummings, a former member of Biden’s Council of Economic Advisers, finds that consumer sentiment improves only after inflation rates decline for some time. His analysis of the University of Michigan’s consumer sentiment index suggests that inflation is no longer the primary concern post-pandemic.
Today, voters are frustrated because Trump had built expectations that he could quickly lower grocery and other prices but has failed to deliver.
“When it comes to structural affordability issues—housing, childcare, education, and health care—Trump has pushed in the wrong direction in each one,” said Cummings, now chief of staff at the Stanford Institute for Economic Policy Research.
He added that Trump’s best chance at easing inflation might be “if he gets a very lucky break on commodity prices,” such as a global bumper harvest and continued oil production exceeding demand.
For now, Trump continues to focus on criticizing Biden for economic issues, repeating his familiar refrain: “The problem was that Biden did this,” Trump said.
https://ktar.com/national-news/the-eerily-similar-ways-how-trump-and-biden-tried-to-ease-anger-about-the-high-cost-of-living/5776839/
