Trump Doesn't Understand Inflation

"One of Trump's challenges in dealing with inflation is that his signature policy-raising tariffs on imports from almost every country in the world-has made the stuff Americans buy more expensive, not less. Trump could, of course, just repeal the tariffs (he did finally lower the duties he imposed on coffee, beef, bananas, and other food imports). But Trump really loves tariffs. So instead of getting rid of them, he has suggested simply sending Americans $2,000 "dividend" checks paid from tariff revenues."

"The cost of living has risen since he took office (inflation today is at 3 percent, up from 2.9 percent in 2024), and Americans are now as angry at him as they were at Joe Biden. In a CBS News/YouGov poll released over the weekend, 64 percent of those surveyed disapproved of Trump's handling of the economy, and 68 percent disapproved of his handling of inflation."

"Trump's reflexive response has been to lie. "We don't have any inflation," he insisted earlier this month. Also: "Our prices are coming down very substantially on groceries and things." But because the president can't quite convince people that they are paying less for beef or electricity than they are actually paying, he has had to come up with some policies to deal with inflation. Unfortunately his plans are little more than quick-fix gimmicks that-in the unlikely event they are ever enacted-promise to make things worse."

Americans are highly dissatisfied with Donald Trump primarily because the cost of living has risen since he took office, with inflation at 3 percent, up from 2.9 percent in 2024. Polling shows 64 percent disapprove of his handling of the economy and 68 percent disapprove of his handling of inflation. Trump promised to slash energy and electricity costs and make prices fall, but his public statements deny inflation and claim falling grocery prices. His tariff increases have raised consumer prices, he has only partially rolled back some duties, and his proposed tariff-funded $2,000 checks are unrealistic and likely to worsen economic outcomes.

Read at The Atlantic