Kevin Hassett, White House Economic Advisor says America is about a trillion dollars better off than it was a year ago and tahe idea of an affordability crisis is a "myth" manufactured by democrats. He cites a boost in wages and an economic boom that has resulted from tariff policies and other Trump Administration mechanisms that the average American does not seem to feel at the gas pump and the grocery store. Meanwhile, the country remains in over $40 trillion in debt. Pres. Donald Trump has touted the financial success of the country on the campaign trail saying the nation is rich and making a ton of money. He also repeatedly states that the gas prices are going to drop soon. Yet, such claims do not square with the current data reality.
THE FACTS
Is the U.S. thriving economically while people are struggling to make ends meet? Not necessarily.
Hassett's claim refers to aggregate economic activity and consumption, not whether individual households feel financially secure. Economists often distinguish between:
-Growth in overall consumer spending
-Growth in wages
-Household affordability
-Cost of living
A country can experience economic growth while many households continue to struggle with housing, healthcare, childcare, groceries, or energy costs, etc. This means that the microcosmic picture is not reflected in the macrocosmic picture.
Hassett's statement reflects one interpretation of macroeconomic data, but it does not by itself prove that affordability concerns are nonexistent.