Trump Economic Chief Says Affordability Crisis Is ‘a Myth’: What Data Shows
Summary
Kevin Hassett, director of President Donald Trump’s National Economic Council, said the affordability crisis is a “myth,” citing rising inflation-adjusted household consumption and higher aggregate income and spending. Economists quoted by Newsweek countered that aggregate figures can hide strain on many households, pointing to falling inflation-adjusted wages, high borrowing costs and the concentration of consumer spending among wealthier Americans.Key Facts
- Hassett said inflation-adjusted consumption per household has increased by about $5,000 since Trump took office.
- The article reports that the national average price of regular gasoline was $4.27 per gallon, up from about $3 before the Iran war began in late February.
- The Bureau of Labor Statistics’ latest report cited in the article put September inflation at 3.7%, up from 3.4% in August.
- In September, nominal hourly earnings rose 0.1% while prices rose 0.6%, amounting to a decline in inflation-adjusted pay for the month.
- The article says consumer prices rose about 6.1% since January 2025, while aggregate personal income rose 7.3% to $27.6 trillion and spending rose 9.3% to $22.3 trillion.
- Moody’s chief economist Mark Zandi said aggregate spending figures obscure difficulties for many households, including falling real wages, low savings and rising borrowing costs.
- Research cited from Moody’s found that the top 10% of U.S. earners account for roughly half of consumer spending.
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