The American economy has not been doing so well for a long time. At least that's what the numbers and key economic indicators suggest. The mood says otherwise, at least among some voters to whom Donald Trump is sending his message. The former president argues that the United States is a country in ruins.
– Chicken is expensive. Prices of canned goods increased by 27 percent, butter increased by 30 percent. Crackers, who would have thought of crackers? – asks Donald Trump, former US president and Republican presidential candidate.
Prices and the deteriorating living conditions of Americans are the most important campaign issue in the United States in the eyes of voters. In the eyes of Republicans – the most important accusation against the current administration.
– We will win the elections. We will change this country. We intend to significantly reduce energy prices. This will significantly reduce the prices of other products, says Donald Trump.
Is the situation for Americans really that bad?
Donald Trump even talks about the country in ruins. And it promises simple solutions. “We will lower your taxes, end inflation, lower prices, raise wages and bring thousands of factories back to America,” he says.
However, journalists have doubts. – Your plans would increase the debt by $7.5 trillion. That's more than twice as many as Vice President Harris. You are on track to increase your debt to 150 percent of GDP. We have an economics-savvy audience here. Why should they trust you? – John Micklethwait, editor-in-chief of Bloomberg, asked at one of the meetings.
– Because we care about growth. Harris won't provide any growth. And we all care about development, replied Donald Trump.
While a factual answer is difficult to obtain, the problems facing many Americans cannot be denied. – Every time I go into the store, the prices are 30 cents higher. Eggs, milk. Everything, says Deryll, a Donald Trump voter.
What do you think? Jobs are growing across the country, with an unemployment rate of just 4.1 percent and inflation at 2.4 percent. But America is not growing at an even pace.
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– The Midwestern states are not doing very well economically. There was a slight increase in the number of jobs in industry. However, overall, this part of the country lags behind the East and West Coasts in economic prosperity. So even though the unemployment rate is low, people feel that the economy is not functioning well. They're not doing well, and that's causing them a lot of anxiety about the future, explains Darrell M. West, a political scientist at the Brookings Institute.
Data show that over the years the financial situation of industrial workers there has deteriorated the most – men without higher education.
“Two generations ago, factory work provided many men with training, benefits and a decent wage after high school,” notes The New York Times. “'These people could buy a house, buy a boat,'” says Susan Houseman, senior economist at Upjohn Institute for Employment Research in Michigan. “She pointed to the state's inland lakes, dotted with summer cottages once built for blue-collar workers,” the newspaper adds.
Rising housing costs
Housing is the main subject of voters' interest. As many as 21 percent of Americans believe that the rising cost of housing is a key problem for them. – We had to move in with our daughter and son-in-law to make ends meet, says Cheryl, a Donald Trump voter.
Each candidate has his or her own idea. Kamala Harris's plan includes increasing housing supply, providing financial support for first-time homebuyers and limiting real estate sales to corporations.
“My plan includes addressing the issue of affordable housing, including providing first-time homebuyers with a $25,000 grant,” says Kamala Harris, US vice president and Democratic presidential candidate.
Donald Trump, in turn, calls for making more federal land available for housing development and limiting lending.
– We also cannot ignore the impact that the wave of 21 million illegal immigrants has on the cost of housing. That's why my plan will ban mortgage lending to illegal immigrants. In California, they are passing a law that will give them loans to buy a house, and our soldiers, our veterans who are lying in the streets, cannot have them – says Donald Trump.
The former president also promises to lower mortgage interest rates. Although the White House administration's policies may influence borrowing costs and interest rates, the president does not make decisions on these matters. This is handled by the American central bank (Fed).
In September, it cut interest rates by 50 basis points for the first time since February 2020.
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Main photo source: PAP/EPA/ERIK S. LESSER