U.S. President Donald Trump reacts during a rally in Greensboro, North Carolina, U.S. October 22, 2024. REUTERS/Carlos Barria
Economic and labor reporter Steven Greenhouse is warning folks not to buy into President Donald Trump's new "affordability" claims.
During the first year of his second term, Trump has claimed that the affordability crisis is a "Democrat hoax," he's claimed, “Energy has come down incredibly. Prices are all coming down.” Trump's own officials are echoing the claim. According to Treasury Secretary Scott Bessent, the average “mom and pop” landlord could be "your parents [who], for their retirement, have bought 5, 10, 12 homes." It comes as housing has become expensive due to a severe inventory shortage, said the National Association of Home Builders in February.
Trump has bragged about his efforts to lower costs by starting the so-called "TrumpRX program." In fact, he said TrumpRX would bring “the world’s lowest prices” for prescription drugs. He has also claimed he's lowered housing costs and promised Americans, “I won affordability."
"But as of this weekend, TrumpRX covered only 61 of the country’s several thousand prescription medications – a drop in the ocean of high-priced prescription drugs," fact-checked Greenhouse for The Guardian. "What’s more, Trump is flat-out wrong when he says TrumpRX is offering the world’s lowest drug prices."
He looked specifically at one of the most popular weight loss drugs, Wegovy: a medium dose is $349 under TrumpRX. The same dose sells for $163 in Japan and $198 in Germany.
"According to a New York Times analysis, Xigduo, a drug for diabetes, is $116 cheaper in Germany than on TrumpRX; Xeljanz, a drug for auto-immune diseases, is $1,653 cheaper there," said Greenhouse.
"The TrumpRX website is one big, glossy, government-paid advertisement for Trump and his ego, but for the vast majority of Americans, it will do nothing to cut their drug prices. TrumpRX is designed to help uninsured, cash-paying patients, but not the 85 percent of Americans who have prescription drug insurance coverage," he added.
Housing affordability has similarly failed. Zillow identified a shortage of 4.7 million housing units nationwide.
"It’s important to remember that for a smooth-talking demagogue like Trump, the goal isn’t so much to accomplish good things, but to make Americans believe he is accomplishing good things," said Greenhouse.
Trump's gas price problem has only grown worse. Despite the increase in drilling in the U.S., oil is a commodity traded on the global market and the war in Iran is taking a huge amount of oil off that market.
Trump's no tax on tips (up to $25,000) and no tax on overtime has certainly made a difference for those desperate for a little extra money. However, it must balance out with the higher costs Trump has created too. Healthcare premiums have shot up more than 20% for over 20 million Americans after the GOP's "One Big Beautiful Bill" that cut out subsidies that help those have access to affordable plans. Then Trump pushed to stop "subsidies that help 6 million low-income households pay their heating and cooling bills," he cited.
All of this comes at a time Trump is more focused on a White House ballroom that has ballooned in price from $200 million to now $400 million. He's also at work on a complete renovation of the Kennedy Center, a total takeover of public golf courses in Washington, and his plan for a huge arch somewhere in Washington.
"All these Trumpian efforts to supposedly cut prices and increase affordability sound nice. They have great PR value and aim to maximize political advantage to Trump, but most of these programs will do far less than advertised to help America’s working families," said Greenhouse. "Many will have an itty-bitty effect, doing little or nothing for average families. Americans shouldn’t be fooled by Trump’s salesmanship."