For the many shoppers facing tight budgets amid rising consumer prices, it seems like we’re in an era of hardship. This is particularly evident for millions of seniors and their families, who are finding that costs for essentials like medicine, baby formula, furniture, electronics, and food are climbing steeply. A recent survey indicates that over three-quarters of Americans view the economy unfavorably, attributing much of the pain to President Trump’s complicated trade policies.
And they might be onto something. There are few periods in American history that have seen such a severe and widespread inflation, especially during Trump’s first year back in office.
This year is shaping up to be notable for skyrocketing prices across the board. Voters might want to reconsider the Republicans’ last-minute economic strategies, especially as they’re feeling the pinch during grocery shopping.
Just last month, Trump claimed that inflation is something he’d “lost,” suggesting everything was back to normal. But, does anything about the current price hikes feel normal? Researchers at Harvard Business School’s Pricing Lab have been closely monitoring how Trump’s tariffs affect real-time pricing. These tariffs, which include new charges, are set to increase prices for items like furniture and wood by up to 50 percent.
What they found was quite surprising. Trump’s tariffs didn’t just inflate the cost of imported goods; they also affected domestically produced items. Generally, American-made products used to be about half as costly as imports, but all types of goods have become pricier.
Alberto Cavallo from HBS Pricing Lab pointed out that contrary to Trump’s assertions, foreign manufacturers aren’t absorbing these tariff costs. The import price index from the BLS isn’t declining; it’s actually rising, suggesting that foreign exporters have not reduced their prices.
If international suppliers can’t accommodate rising commodity costs, consumers in the U.S. will ultimately face higher prices. Research by the Century Foundation revealed that 40% of Americans have depleted their savings, with 37% relying on credit cards or other debts for basic needs. About 70% of households are now grappling with significant increases in spending and have trouble keeping up with bills they once managed.
While skipping the latest iPhone release might be doable, families can’t really forgo feeding their children. However, some are indeed doing just that. A Century Foundation study indicated that 25% of respondents or someone in their household has skipped meals to save money in the past ten months; for Hispanic families, that figure jumps to 41%. This trend is concerning, especially as the prices of staple foods like beef and orange juice have surged by more than 10% compared to last year.
As for American workers, they can’t seem to catch a break. The cost of lunch has increased significantly since the Biden era, with the National Restaurant Association suggesting that eateries may need to elevate prices by over 30% just to maintain profit margins. This means that everyday items like bagels, sandwiches, and burgers could soon become much more expensive without corresponding wage increases. A $19 burger might just become the norm!
When Trump envisioned a new economic golden age, few anticipated that it might lead to less money in people’s pockets. Nowadays, Americans feel poorer and less optimistic about their financial futures than they did a year ago. Planning a simple family dinner out or a movie night has become a balancing act against the rising costs of food and fuel.
These days, being American doesn’t feel all that enjoyable.
Instead of a fresh economic start, we’re witnessing a revival of stagflation, reminiscent of the Carter years. Since July, inflation has been climbing, fueled by fewer job opportunities and stagnant wages. While Trump could keep claiming that prices are dropping, those words ring hollow for American families observing their diminishing purchasing power.
Republicans might be adept at persuading people with untruths, but no amount of rhetoric can convince a family they’re financially secure when they are not. Trump continues to believe he can spin the narrative to make disenchanted Americans feel okay about their situation. But they simply can’t afford the false reassurances he’s offering.
