Economist says 'crisis for American families' comes 'directly out of the White House'

President Donald Trump continues to suffer weak approval ratings in poll after poll, and respondents often cite his handling of the economy — including inflation — as a key factor. One of Trump's outspoken critics on the economy is University of Michigan economist Justin Wolfers, who emphasized that Trump's policies are making inflation worse, not better, during a Monday morning appearance on MS NOW.

When MS NOW host Ana Cabrera noted that according to polls, "three-quarters of Americans" are feeling "stressed about their finances," Wolfers responded that the "pressures that people are feeling are absolutely real."

"Over the past year," Wolfers told Cabrera, "prices have risen by 3.8 percent. Wages have risen by 3.6 percent. That gap, it's small right now, but that gap tells you that the amount of stuff that people can afford to buy with their wages has gone down. We call that real wages. You know, I think the current moment, it's unusual, I think, in two really important respects that maybe make people feel the sting a little more."

Wolfers continued, "The first is that these crises last year — the trade war, this year, the Iran war — both of which have pushed up the cost of living, as well as deporting a big part of the labor force, they're caused right here at home. They come directly out of the White House, and I feel a certain fury about that."

The University of Michigan economist, originally from Sydney, Australia, noted the disconnect between Trump's 2024 campaign promise to bring down prices "on Day 1" and "the world which was delivered, which was the exact opposite."

Citing figures from Rep. Ro Khanna (R-California), Cabrera noted specific price increases — including gas up by 28.4 percent, airfares up by 20.7 percent and energy costs up by 17.9 percent.

Wolfers told Cabrera, "So normally, I'd come on and I'd say: Look, Ana, the president doesn't control everything. There's a lot going on. Except, all of this is coming out of the decision to bomb Iran, which upsets world oil markets — which then causes higher fuel prices in the U.S. And then, it's going to ripple through the rest of the sectors. So, all of that does come from right here at home. And it's going to continue."

Wolfers added, "Let me say that in two respects. One, you see fuel prices rise. That's the rocket in the pond. And then, the ripples are that jet fuel prices rise and air fuel prices rise. And then, the price of trucking your groceries to the grocery store rises. And on and on it goes…. This is a crisis for American families. And he's spending more time talking about ballrooms than he is about Iran."

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