The claim that the economy is booming and costs are falling sounds appealing, but the reality tells a different story. Despite assertions from former President Trump that grocery prices and overall costs are dropping, many Americans continue to struggle with rising expenses and stagnant wages. Official government data has been delayed due to the shutdown, but private reports and economic trends reveal a troubling picture. This post explores the true state of the economy under Trump’s policies and outlines ten commitments Democrats should make to address these challenges.

Prices Keep Rising While Real Wages Decline

Consumer prices have increased by about 27 percent since the pandemic began. Although inflation has slowed compared to the peak in 2022, prices remain significantly higher than before. Meanwhile, wages have not kept pace with these increases. Many Americans feel the pinch: a recent Harris poll found that 62 percent of people noticed price hikes in everyday items over the past month, and nearly half said these increases were hard to afford.

One major factor behind rising prices is the tariffs imposed during Trump’s administration. These import taxes raise costs for American companies, which then pass those costs to consumers. While some tariffs on items like coffee, bananas, and beef have been lifted, many remain in place, keeping prices high across numerous sectors.

Data from the Bank of America Institute shows that inflation has outpaced after-tax pay for lower- and middle-income households since the start of the year. The JPMorgan Chase Institute reports that real income growth has slowed to levels last seen during the early 2010s, a period marked by slow recovery from the financial crisis.

The Impact of Tariffs on Everyday Americans

Tariffs act like hidden taxes on goods imported from other countries. When companies face higher costs, they often raise prices for consumers. This affects everything from electronics to clothing to food. For example, tariffs on steel and aluminum increased production costs for manufacturers, which then passed those costs on to buyers.

Removing tariffs on some agricultural products was a step in the right direction, but many tariffs remain, continuing to push prices upward. This policy choice has contributed to the ongoing rise in the cost of living, especially for families already struggling to make ends meet.

The Shrinking Purchasing Power of Wages

Even as wages rise nominally, inflation reduces their real value. This means that while paychecks might be bigger on paper, they buy less in practice. For many workers, especially those in lower-income brackets, this results in a decline in living standards.

The Bank of America Institute’s data highlights that after adjusting for inflation, real wages have been falling. This trend undermines economic security for millions of Americans and limits their ability to save or invest in their futures.

Ten Things Democrats Should Pledge to Do

To reverse these trends and support working families, Democrats should commit to the following actions:

• Eliminate harmful tariffs that increase costs for consumers and businesses.

• Invest in wage growth by supporting policies that raise the minimum wage and encourage fair pay.

• Strengthen consumer protections to prevent price gouging and unfair business practices.

• Expand affordable housing to reduce living expenses for families.

• Improve access to healthcare to lower out-of-pocket costs.

• Support job training and education to help workers adapt to changing industries.

• Promote competition in key markets to drive down prices.

• Increase transparency in pricing for essential goods.

• Enhance social safety nets to protect vulnerable populations.

• Encourage sustainable economic policies that balance growth with affordability.

  
  

Moving Forward with Clear Priorities

The economic challenges facing Americans today are real and pressing. Rising prices combined with falling real wages create a squeeze that affects millions of households. Addressing these issues requires clear, focused action from policymakers.

Democrats have an opportunity to offer practical solutions that improve everyday life for working families. By committing to policies that reduce costs, raise wages, and protect consumers, they can build an economy that works for everyone—not just the wealthy few.