In recent times, former President Donald Trump has made controversial statements regarding inflation, labeling the current affordability crisis as a “hoax” and claiming, “I won affordability,” a puzzling assertion suggesting he has somehow managed to overcome inflation. Acknowledging the significance of affordability as a critical concern, and with his political standing suffering due to his actions related to Iran, he appears motivated to gain support by asserting his commitment to reducing living expenses. Nonetheless, it is crucial for the public not to be deceived by his persuasive rhetoric.
Trump has touted his achievements in lowering prices for prescription drugs, housing, food, and gasoline. While these claims serve as favorable publicity for him, they are largely overstated. His efforts to combat inflation have minimal impact, as many are small-scale initiatives that yield negligible results. Their significance is comparable to that of a degree from Trump University.
He frequently promotes his TrumpRX program, suggesting it will provide Americans with “the world’s lowest prices” for prescription medications. However, as of this weekend, TrumpRX covers only 61 out of thousands of available prescription drugs, making it a minor player in the landscape of high drug prices. Furthermore, TrumpRX’s pricing claims are misleading; for instance, a medium dose of Wegovy is priced at $349, whereas it costs $163 in Japan and $198 in Germany. A New York Times analysis revealed that Xigduo, a diabetes medication, is $116 cheaper in Germany than through TrumpRX, and Xeljanz, another drug for autoimmune conditions, is $1,653 less expensive there.
The TrumpRX website largely serves as a polished, government-funded advertisement for Trump, offering little relief from high drug costs for most Americans. It is primarily intended for uninsured patients who pay out-of-pocket, neglecting the 85% of Americans who have insurance for prescriptions.
In response to concerns over rising housing costs, Trump has claimed that he is working to keep rents down through an executive order preventing Wall Street firms from purchasing single-family homes. However, experts point out that institutional investors own only about 2% of these homes, meaning his actions are unlikely to significantly affect housing prices or rent. The root issue driving high housing costs is a considerable shortage of available units, with Zillow estimating a deficit of 4.7 million homes nationwide. Additionally, Trump’s military actions in Iran have contributed to rising mortgage interest rates.
It is essential to remember that for a charismatic figure like Trump, the primary objective is not to achieve substantial results but rather to create the perception that he is effecting positive change.
Since returning to the political arena, Trump has claimed he is reducing gasoline prices by rolling back environmental regulations and promoting increased fossil fuel extraction. However, following his military actions in Iran, gas prices have surged, reaching an average of $4.10 per gallon, a 37% increase from the $2.98 average before the conflict began.
Although Trump vowed to lower food prices on his first day in office, the reality is that food prices have risen since his inauguration. Despite his claims, prices for essential items have increased, with overall food costs climbing by 3.1% from February 2025 to February 2026. Notably, prices for coffee, beef, and fresh vegetables have risen significantly. Trump’s tariffs have also contributed to increased costs of various food products, indicating a preference for raising tariffs over reducing prices.
Even as Trump asserts he has “won affordability,” the Organization for Economic Cooperation and Development predicts that inflation in the United States will exceed 4% this year, largely due to his military actions in Iran, significantly higher than the 3% rate when Biden left office. Trump’s claim that he “inherited the worst inflation” in history from Biden is unfounded.
Trump also argues that he has increased the disposable income of Americans by eliminating taxes on overtime pay and Social Security benefits, but these assertions are misleading. During a speech in Hebron, Kentucky, he stated, “Every extra hour you work, your overtime pay is now 100% tax-free. You have no tax.” In reality, two-thirds of overtime pay is subject to federal income tax, while 100% is liable for Social Security and Medicare payroll taxes. Only the overtime premium is exempt from income tax.
Regarding Social Security, Trump claims there are no taxes on benefits; however, the Tax Policy Center indicates that more than half of seniors receiving Social Security will still incur some income tax on their benefits. The center clarified that Trump’s budget proposal would only reduce—not eliminate—income taxes on these benefits. Despite his assertions, more than 10% of Americans will likely continue paying taxes on their Social Security, a figure that the Tax Policy Center believes is a conservative estimate.
It is worth noting that Trump did advocate for a “no tax on tips” provision, which was implemented under last year’s tax reform, benefiting a small fraction of workers. However, this change is limited in scope, applying only to approximately 1.7% of the U.S. labor force.
