{"id":908499,"date":"2026-09-28T11:34:08","date_gmt":"2026-09-28T11:34:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/908499\/"},"modified":"2026-09-28T11:34:08","modified_gmt":"2026-09-28T11:34:08","slug":"as-the-us-midterms-approach-trumps-boasts-on-the-economy-fall-flat-with-voters-us-economy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/908499\/","title":{"rendered":"As the US midterms approach, Trump\u2019s boasts on the economy fall flat with voters | US economy"},"content":{"rendered":"

Donald Trump has taken to repeating a familiar boast: \u201cWe have the greatest economy<\/a> in history,\u201d Trump said recently at a White House press gaggle. The boast comes even though inflation is higher and economic growth lower than when Joe Biden left office, even though gas prices have jumped around 50%<\/a> since the war against Iran started, and even though 73% of Americans think the economy<\/a> is in fair or poor shape (48% say it\u2019s in poor shape). What\u2019s more, the Federal Reserve is so worried about inflation that it just raised interest rates.<\/p>\n

\u201cIt\u2019s bluster, it\u2019s gaslighting for him to say the economy is the greatest ever,\u201d said Darrick Hamilton, chief economist for the AFL-CIO, the nation\u2019s main union federation. \u201cThe economy is trending down by many measures. A lot of that has been caused by Trump\u2019s unforced errors.\u201d<\/p>\n

Hamilton said those errors include Trump\u2019s tariffs and his war against Iran, both of which have pushed up prices \u2013 inflation is running at 3.4%, up from 3.0% when Biden left office. One unfortunate result is that prices have been rising faster than wages, worsening Americans\u2019 affordability problems. A New York Times\/Siena Poll<\/a> found that 71% of voters disapprove of how Trump is handling the cost of living.<\/p>\n

Over the past 12 months, according to the Bureau of Labor Statistics<\/a>, fuel oil prices have soared 52%, while ground beef is up 7.2%, fish and seafood up 6.5%, coffee 6.1%, sugar and sweets 6.1% and electricity up 3.8%. The administration boasts that egg prices are down 23%, even as gas has soared to an average of $4.47 per gallon<\/a> nationwide.<\/p>\n

With the economy growing at a modest 1.5% rate in the second quarter, Trump stretches the truth when he boasts of a great economy, considering that under John F Kenndy, Lyndon Johnson and Ronald Reagan, there were full years when GDP growth \u2013 the broadest measure of the nation\u2019s economy \u2013 averaged over 6%. (The economy grew at a 2.7% annual rate during Biden\u2019s last six months in office).<\/p>\n

Consumer sentiment has slid sharply in light of today\u2019s stubborn inflation, mixed with slower economic growth, high interest rates and huge economic uncertainty about trade wars and AI. According to a University of Michigan poll, consumer sentiment fell in September<\/a> to its second lowest level ever<\/a> in the poll\u2019s 74-year history. Only this past May was lower.<\/p>\n

Kush Desai, a White House spokesman, said: \u201cPresident Trump has always been clear about temporary disruptions as a result of the Iran conflict, but the Trump administration has remained laser-focused delivering on the president\u2019s long-term economic agenda on the home front.\u201d As good news, Desai cited \u201ccontinued private-sector job growth\u201d and \u201cbooming investments\u201d.<\/p>\n

The unemployment rate has been fairly low during Trump\u2019s second term \u2013 at 4.1%,<\/a> it\u2019s about the same rate as in Biden\u2019s last year<\/a>. But the jobless rate has been lower under several previous presidents; it sank to 2.5 % at one point under Dwight Eisenhower<\/a> and below 4% at times under Bill Clinton, Richard Nixon and Johnson<\/a>. But in a not-so-great statistic, job growth has been mediocre since Trump returned to office \u2013 just 43,000 a month on average, less than one-third the 145,000 average during Biden\u2019s last two years in office.<\/p>\n

Although Trump said his tariffs were aimed at revving up manufacturing, the US has lost 35,000 factory jobs since he returned to office. Last month, however, there was good news on job growth \u2013 the nation added an impressive 162,000 jobs<\/a>.<\/p>\n

Desai said the Biden administration \u201cpadded employment growth\u201d by \u201cadding hundreds of thousands of government or government-adjacent jobs that relied on runaway federal spending\u201d. He added, \u201cPresident Trump is slashing regulations and taxes to create sustainable private-sector jobs \u2013 not juking the statistics by drumming up government spending.\u201d<\/p>\n

Michael Strain, director of economic policy studies at the American Enterprise Institute, a center-right thinktank, had an upbeat view, saying: \u201cThe economy is strong.\u201d Strain added, \u201cthe unemployment rate is very low,\u201d and \u201cthe economy is very resilient in the face of high energy prices, and consumers are resilient in the face of the trade war.\u201d He noted that \u201cinvestment spending is very strong\u201d.<\/p>\n

\u201cWhere we\u2019re not doing well is inflation,\u201d Strain added. \u201cIt\u2019s eroding wages and income. Inflation is a headwind that households are facing.\u201d<\/p>\n

Donald Trump speaks about the economy in the Oval Office of the White House on 7 August 2025 in Washington DC. Photograph: Brendan Smialowski\/AFP\/Getty Images<\/p>\n

Responding to the widespread concerns about inflation, Desai said: \u201cThe last two inflation reports [show] dramatic month-over-month price reductions in beef, prescription drugs, and auto insurance.\u201d He said this is \u201cproof that the administration\u2019s targeted policy interventions to lower costs are delivering\u201d.<\/p>\n

Responding to concerns about inflation, Desai said: \u201cPresident Trump had always been clear about market disruptions as a result of the Iran conflict, but the last two inflation reports showing dramatic month-over-month price reductions in beef, prescription drugs, and auto insurance are proof that the administration\u2019s targeted policy interventions to lower costs for American families are delivering.\u201d<\/p>\n

Lindsay Owens, president of the Groundwork Collaborative, a progressive thinktank, was far more downbeat about the economy. \u201cI think it\u2019s going pretty poorly,\u201d she said. \u201cThe Federal Reserve just raised interest rates, when Americans were already concerned about high interest rates. That\u2019s not going to do anything to help people who want to buy houses when mortgage rates are already high. Americans are feeling that things are pretty grim.\u201d<\/p>\n

\u201cTrump\u2019s approval rating on the economy was his superpower in his first term,\u201d she continued. \u201cBut now it\u2019s absolutely in the toilet.\u201d<\/p>\n

Just 28% of Americans approve of how Trump has handled the economy, according to a new Marquette Law School poll<\/a>. Just 29% of Republicans<\/a> say the economy is better than a year ago, down from last January when 72% of Republicans said the economy was better than a year earlier,<\/p>\n

Owens said AI has been crucial for Trump\u2019s economy, helping fuel GDP growth, business investment and repeated stock market records. \u201cThe pieces of the economy that are doing well are completely propped up by AI investment,\u201d Owens said. \u201cThat\u2019s the whole story. That\u2019s what Trump has going for him.\u201d<\/p>\n

\u201cBut,\u201d she continued, \u201cthat\u2019s an increasingly precarious place for him to be right now,\u201d considering the fast-growing worries about AI, including the fierce opposition to datacenters in many communities, the recent calls to slow AI development for safety reasons, and Wall Street\u2019s increasing skittishness about AI stocks.<\/p>\n

Owens pointed to a second factor that\u2019s sustained the economy: the vast spending power of the richest 10% of Americans. She said they account for nearly 50% of consumer spending,<\/a> and while the bottom 50% by income are feeling squeezed, it\u2019s the top 10%\u2019s buying power \u2013 whether on new cars, airline tickets, or home renovations \u2013 that\u2019s kept consumer spending and the economy from faltering.<\/p>\n

\u201cIt seems to me the president doesn\u2019t care about how average Americans are doing,\u201d Owens said, pointing to such Trump statements as \u201cI don\u2019t think about Americans\u2019 financial situation<\/a>,\u201d which Trump said last May when asked about how the Iran war was affecting Americans. And last week, he downplayed consumers\u2019 dismay about the surge in gasoline prices, saying, it\u2019s \u201ca little higher\u201d and \u201cit\u2019s a very inexpensive price<\/a>\u201d.<\/p>\n

Owens said responsibility for high gas prices and higher inflation rests squarely with Trump. \u201cThis is not a situation where the economic conditions are beyond his control,\u201d she said. \u201cHe has made a deliberate series of choices that cut against his promises to reduce prices.\u201d<\/p>\n

According to the Yale Budget Lab, the average American household will spend $1,100 more this year<\/a> due to Trump\u2019s tariffs, while Mark Zandi, chief economist at Moody\u2019s Analytics, says the average household will have to spend $1,000 more this year<\/a> because of higher fuel, food and other prices caused by the Iran war.<\/p>\n

\u201cThe biggest drivers of inflation are his tariffs and the war against Iran,\u201d Owens said. \u201cThese are policy-driven price hikes,\u201d<\/p>\n

The White House sees it differently. \u201cThe hard data of actual consumer spending and retail sales has remained robust throughout President Trump\u2019s term so far. American consumers remain resilient and are voting with their dollars,\u201d said Desai. How consumers really feel will become clear in November, when the real voting takes place.<\/p>\n","protected":false},"excerpt":{"rendered":"Donald Trump has taken to repeating a familiar boast: \u201cWe have the greatest economy in history,\u201d Trump said…\n","protected":false},"author":2,"featured_media":908500,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-908499","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/908499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=908499"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/908499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/908500"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=908499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=908499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=908499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}