Is Trump's Promise To Slash Prices Working Out For You? No? I've Got Receipts
Donald Trump's assault on our democratic institutions did not stop voters from giving him a second term. The top reason they cited for reelecting him was the economy, notably their unhappiness over high prices.
During the campaign, Trump promised to "bring prices down, starting on Day One." How he would do this was left to our imagination. It seemed something along the lines of using his awesome powers to freeze prices and even make some melt. That and a pack of lies.
Two days back in office, Trump issued a "Fact Sheet" headlined "President Donald J. Trump Delivers Emergency Price Relief for American Families to Defeat the Cost-of-Living Crisis." Oh? Did you feel that instant "price relief" by virtue of Trump simply walking over the White House threshold once again?
His loyal defenders argued that, hey, that's how Trump talks. Give him some time and he'll bring the cost of living to heel. Trump has had well over a year to work his magic, and so let's see how his promises to enrich ordinary Americans have panned out.
— DOGE checks. Remember them? Trump said in February 2025 that he was "considering" a plan to send taxpayers some of the savings achieved by Elon Musk's Department of Government Efficiency. He threw out the number $5,000.
The number of DOGE checks issued: Zero.
— Tariff checks. Come August, Trump floated the idea of sharing the fruit of his trade war with the people. He talked of sending some tariff revenue back to Americans in the form of dividends.
The number of tariff dividend checks issued: Zero.
— Prescriptions 1,500 percent cheaper. Trump's negotiators did get drug companies to "promise" discounts on a small number of drugs. That led Trump to immediately announce something that was demonstrably untrue: "We now are paying the lowest price anywhere in the world for drugs."
Meanwhile, our median price for hundreds of brand-name drugs has risen four percent this year.
Not to quibble with Trump's math, but a 100 percent reduction would drive those drug prices down to zero. A 1,500 percent reduction is a mathematical absurdity.
— Credit-card interest rates capped at 10 percent. On January 10, Trump posted his call for that 10 percent limit on credit-card APRs (annual percentage rates). It was to start 10 days later and last a year. He added a threat to his decree: Credit-card companies would be "in violation of the law" if they didn't lower their rates as ordered. As it happens, presidents don't have the legal authority to force credit-card companies to slash their interest rates.
Spring is here, and the average credit-card APR is about 21 percent. That's higher than 10 percent, don't you think?
— Gas under $2.00. Trump promised that, but the war with Iran is incompatible with cheap gasoline. The U.S. average price for a gallon of regular gasoline currently stands at over $4.00.
— Lower grocery prices. On the campaign trail, Trump said, "A vote for Trump means your groceries will be cheaper." Since Trump returned to office, the consumer price index for "food at home" shows grocery prices up about 2.4 percent. That's not a huge jump, but in no way does it translate into "cheaper groceries."
Former President Joe Biden inherited messed-up supply chains in the wake of COVID. That was the main driver of his inflation numbers, though the stimulus spending didn't help. But when Biden left office, the inflation rate was down to three percent. For the record, it's now 2.4 percent.
There was much I didn't love about Kamala Harris, but Trump's attempt to violently overthrow the results of the 2020 election was the ultimate deal-killer for reelecting him. To me, the sanctity of American elections mattered more than the price of a hamburger. Many others, obviously, disagreed.
Froma Harrop is an award winning journalist who covers politics, economics and culture. She has worked on the Reuters business desk, edited economics reports for The New York Times News Service and served on the Providence Journal editorial board.
Reprinted with permission from Creators.
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