“I’m drowning in debt,” says Samuel De La Cruz, a 34-year-old aspiring software engineer (once a highly stable, almost foolproof career) struggling to make ends meet. Stories like his are increasingly common for millions of US households. Yet, on December 9, the White House released a self-congratulating statement claiming that the cost-of-living crisis in the United States is being reversed under the Trump Administration. The president’s cartoonish claims of an “A++++” economy are starkly at odds with the day-to-day experience of the vast majority of the population.

Consumer price data shows that inflation remains elevated, housing and healthcare costs continue to rise, and workers are struggling to cover basic expenses.

Inflation

Trump claims to have reduced what he calls “Biden’s inflation crisis”. However, inflation remains significantly higher than historic levels. According to the Consumer Price Index (CPI), inflation has still been rising at 2.9%-3.2% in recent months. With pre-pandemic levels of inflation measuring around 2%, current rates mean US households are still enduring broadly elevated prices for basic necessities.

The White House blamed the “Radical Left’s obsession with spending” for the inflation crisis (presumably referring to Democratic Party funding of a limited amount of social programs). Meanwhile, a staggering 900 billion USD military bill heads to the House of Representatives on December 10 for approval, with bipartisan support. The bill marks the country’s largest military budget in its history, which was already larger than the next nine countries combined.

Essential living costs

While the White House cited modest decreases in shelter inflation and the national median rent, housing costs were still reported as the “largest factor in the all items monthly CPI increase”. The September CPI release showed that shelter costs (a metric composed of rent and owners’ equivalent rent) have increased 3.6% over the last year. Additionally, a recent analysis demonstrated how housing costs can continue to increase for renewing and longer-term tenants even if new-lease rents moderate slightly. This means that a dip in the current median rent may not reflect actual housing costs.

Healthcare costs were notably absent from Trump’s declaration, but on the heels of the Democrats’ capitulation to sweeping healthcare cuts (including 900 billion USD cut from Medicaid), US households expect medical care costs to double or triple in the coming years.

Electricity and other energy related costs were also not mentioned in the statement, but reports show that home heating costs are expected to rise 7.6% in the US this winter.

Grocery prices

The price of specific items cited by the president, like eggs and some produce, have dipped modestly. However, many staple grocery items, like meat, dairy, coffee, sugar/sweets, have increased since Trump took office.

Beyond the stats: workers crushed by the cost-of-living crisis

Across the United States, workers report significant financial hardship. With 73% saying they struggle to cover more than basic living expenses. Many families now skip saving entirely, or fall into debt to cover essential costs.

Carlos Vizcarra, 34, told Peoples Dispatch he and his partner work four jobs between them to make ends meet in Salt Lake City. “I work as a specialist in a marketing agency and as a server. My wife works for a repair and collision shop and as a bartender on weekends.” Back in 2023, he says he only needed one job to afford what he needed. “I definitely feel the pressure of inflation,” he says.

After mass layoffs at the financial technology firm Health Equity, Inc., Samuel De La Cruz tells Peoples Dispatch he is struggling to find another job in software engineering. “Entry-level roles are getting swallowed by AI, so it’s almost impossible to gain experience.”

Recently married with his second child on the way, De La Cruz says, “Compared to this time in 2024, I’m straight up drowning in debt.”

A+++++ economy for who?

While the White House points to selective metrics to claim success on delivering affordability, the reality for most Americans remains starkly different. Housing, healthcare, energy, and staple food costs continue to rise, wages lag behind amidst a challenging job market, and the vast majority of workers struggle to cover basic expenses. Despite the administration’s assertion that “prices are going down”, for millions of people in the US, the cost-of-living crisis shows no sign of easing.

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