THE COST OF LIVING CRISIS
President Trump's Defining Issue
The MAGA movement and the Republican Party will retain their congressional majorities in 2026 and the White House in 2028 by addressing the cost-of-living crisis that continues to burden American families. The Trump Administration has moved aggressively in its first six months to alleviate the financial pressure millions of Americans face, but significant work remains ahead. Of all the challenges the Trump Administration will contend with, reducing the cost of living for the average household is the most important.
The exit poll data from the 2024 presidential election suggest that the issue of inflation was a decisive factor in the election. According to CBS News, 45 percent of voters reported being financially worse off than they were four years ago. From that group, 8 in 10 voters selected President Trump. Two-thirds of voters viewed the economy negatively, and that majority also heavily favored President Trump. Among voters who listed can bring needed change as the most important candidate quality, President Trump won 73 percent of those votes. The bad economy — and specifically, inflation — propelled Donald Trump to the presidency.
The cost-of-living crisis in the United States is primarily caused by a decline in the purchasing power of its citizens. Purchasing power refers to the amount of goods or services that can be purchased for a given sum of money. Since 2020, the purchasing power of the U.S. dollar has declined roughly 24 percent. A dollar in 2020 is equivalent to $1.24 in 2025. This grim economic reality is why many voters sought change from the Biden Administration. Consequently, for the Trump Administration, increasing the purchasing power of the average American over his term should be its top economic priority.
Fortunately, President Trump has been laser-focused on both reducing costs and increasing pay for the American people. In the recently passed Big, Beautiful Bill, laborers can deduct up to $12,500 in overtime and $25,000 in tips. These provisions in the legislation will guarantee additional savings during tax season, which will help the working class better afford daily necessities. Additionally, our most vulnerable workers earning between $15,000 and $30,000 will receive the most significant tax cut, at 21 percent. If that wasn’t enough, the standard deduction has been increased for most filers.
Additionally, President Trump’s strict enforcement of immigration laws has reshaped the employment landscape: since January, native-born workers have accounted for all job gains. Combined with President Trump’s other policies, it’s no surprise that real wages have increased by four percent annually. This represents good and measurable progress.
On the monetary front, President Trump has publicly pressured Federal Reserve Chairman Jay Powell to lower interest rates in response to cooling inflation numbers. If the Federal Reserve complies, lower mortgage rates would decrease the cost of housing nationwide. Additionally, the GENIUS Act was recently signed into law by President Trump, establishing the regulatory framework for stablecoin adoption. This act should increase demand for U.S. debt, which should help stabilize the U.S. dollar.
When it comes to reducing costs, the alliance between President Trump and the Tech Right to rapidly advance and deploy sector-disrupting technology could be critical. Consider that Silicon Valley and Tech Right entrepreneurs and engineers are working on robotaxis, eVTOLs (electric vertical take-off and landing aircraft), seagliders, humanoid robots, quantum computing, supersonic jets, reusable rockets, space internet, autonomous delivery drones, and advanced artificial intelligence. President Trump has fully embraced the promises from tech world leaders for a better future. For this better future to manifest, President Trump signed executive orders and passed legislation (e.g., BBB) that reduce tech-related regulations, enable companies to write off research and development expenses, and expand tax credits to domestic semiconductor companies that build factories in the United States.
Increasing domestic energy production is essential for reducing prices, as energy underpins every sector and company, both domestically and globally. Furthermore, the tech revolution will demand a vast amount of new energy if it is to succeed. Fortunately, President Trump’s energy policies promote nuclear energy, clean coal, and natural gas, while reducing or eliminating subsidies to expensive green energy sources. Recently, President Trump attended the Inaugural Pennsylvania Energy and Innovation Summit, where $90 billion in AI and energy investments were announced. If the battle against inflation is to be won, then reasonably priced energy is essential. And the Trump Administration is on the right path to unlocking our massive energy resources.
A recent YouGov/Economist survey conducted this month is flashing warning signs for the Trump Administration. Consider the data among the working class, a crucial part of President Trump’s base: 55 percent of working-class voters disapprove of the economy, and 53 percent feel the economy is worsening. Additionally, 47 percent said they were worse off financially than a year ago, and 61 percent said inflation wasn’t improving.
There is reason for optimism. As outlined in this article, technological advances, lower energy costs, the likelihood of lower interest rates, and reduced taxes and regulations from the Big, Beautiful Bill are expected to spur economic growth and lower inflation by the time of the midterm elections. The Trump Administration faces numerous challenges, but prioritizing growth and lower inflation above all else will ensure the MAGA coalition remains the dominant political movement of our time.
