President Trump attempted to take control of the narrative around the rising cost of living in the U.S. during a triumphant address from the White House on Wednesday evening, in which he blamed the Biden administration for leaving him with a “mess” and cited several ways his administration has improved the economy.
“I inherited a mess, and I’m fixing it,” Trump said, taking shots at his predecessor over inflation and immigration.
“Over the past 11 months, we have brought more positive change to Washington than any administration in American history. There’s never been anything like it,” Trump said in his 18-minute end-of-year address to the nation.
During the Biden administration, auto prices rose 22 percent “and in many states 30 percent or more,” gasoline rose 30 to 50 percent, hotel rates rose 37 percent, and airfares rose 31 percent, Trump claimed.
“Under our leadership, they are coming down and coming down fast,” he said.
While the president is correct that many prices increased during the Biden administration, he seemed to inflate several of those figures. According to the Consumer Price Index data published by the government, new and used car prices rose 26 percent, gasoline prices rose 22 percent, hotel rates rose 20 percent, and airfare rose 3.5 percent under Biden.
Several of those categories are down under Trump, according to NBC News.
Under President Biden, inflation hit a peak of 9.1 percent in 2022; that figure dropped to 3 percent year-over-year in September. However, that means consumer prices have continued to rise, though the rate of increase has slowed.
Trump’s speech comes just one month after Democrats had a strong showing on Election Day in several states, thanks to voter concerns over the cost of living. Roughly three-quarters of Americans say their incomes are not keeping pace with inflation, according to a new CBS News poll. Just 32 percent of respondents said the condition of the economy is good.
Trump aimed to rewrite a more positive narrative about the country’s financial state.
“Much of this success has been accomplished by tariffs, my favorite word, tariffs, which for many decades have been used successfully by other countries against us, but not anymore,” Trump said of his perceived economic success.
“Companies know that if they build in America, there are no tariffs, and that’s why they’re coming home to the USA in record numbers. They’re building factories and plants at levels we haven’t seen,” he said.
In his speech on Wednesday, Trump announced he would use the revenue from tariffs to partially fund $1,776 checks to military service members. Trump dubbed the payments “warrior dividends” and said they will be sent out before Christmas.
However, for other Americans, the tariffs have had a poor economic impact, with consumers taking on as much as 55 percent of their costs, according to an October report from Goldman Sachs analysts.
The president also offered a look forward, predicting Americans will soon see “the results of the largest tax cuts in American history.”
“Many families will be saving between $11,000 and $20,000 dollars a year, and next spring is projected to be the largest tax refund season of all time,” he said.
He further suggested that the U.S. is “poised for an economic boom, the likes of which the world has never seen.”
And with enhanced Affordable Care Act tax credits set to expire at year’s end, Trump addressed health care costs, suggesting funding used for insurance subsidies should “go to the people” rather than to insurers.
“The only losers will be insurance companies that have gotten rich, and the Democrat Party, which is totally controlled by those same insurance companies,” he said.
The House on Wednesday passed a Republican-backed health care bill that would not renew the enhanced subsidies.
The president also touted his successes at the border after having inherited “the worst border anywhere in the world.”
“In a few short months, we went from worst to best,” he said.
Illegal border crossings have hit historic lows under the Trump administration.