Trump is making life affordable again for every American, and here’s how

Trump focuses on affordability amid price spike

National Economic Council Director Kevin Hassett joins ‘Sunday Morning Futures’ to weigh in on the potential economic fallout if Trump’s tariffs are struck down in the Supreme Court and rising tensions over China’s rare-earth minerals.

Democrats’ favorite word lately is “affordability.” They have painted the false narrative that the election of socialist Mayor Zohran Mamdani in solidly blue New York City or Democrat Gov.Abigail Spanberger in solidly blue Virginia were somehow referenda on President Donald Trump’s agenda.This fallacy not only ignores the recent past but also misses the facts immediately in front of us that Trump’s policies are making America affordable again.

Prices soared during the Biden administration.Inflation rose at a near 5% annualized rate during his term.Such a disaster is second only to the severe Carter-led inflation of the 1970s, which collapsed U.S.living standards.Contrast this with Trump’s first term, when inflation rose at less than a 2% annualized rate.

The memory of low inflation and strongeconomic growthduring Trump’s first term inspired Americans to re-elect him for a second term.Voters put their trust in Trump’s stewardship after a disastrous four years of economic hardship under Biden. Immediately after taking office, Trump began laying the groundwork for a Golden Age economy.While there is still much work ahead to help Americans out of the hole created by the Biden administration, we are making progress.

The first step was passing theOne Big Beautiful Bill (OBBB), which will help Make America Affordable Again.There are three key provisions in the OBBB that will boost take-home worker pay.

TRUMP FLIPS DEMS’ ‘AFFORDABILITY’ SCRIPT, TURNING BUZZWORD INTO MAGA MATERIAL AS MAMDANI VISIT LOOMS

Oval Office meeting between Trump and Mamdani

President Donald Trump meets with New York City Mayor-elect Zohran Mamdani (L) in the Oval Office of the White House on Nov.21, 2025, in Washington, DC. (Andrew Harnick/Getty Images)

First is permanent full expensing ofbusiness investment, or what is commonly referred to as capital expenditures (or “capex”).Thanks to this bold tax incentive, companies can now write off the full cost of purchasing computers, industrial machinery, software and any other equipment.When firms raise their capex, productivity increases, since workers have additional capital to produce the goods and services businesses and consumers want.Greater productivity, in turn, raises household living standards by providing companies the ability to pay their workers more.Economic history is replete with examples when surging productivity produced large increases in worker wages.

The second provision in the OBBB dovetails with the capex incentive but may be even more powerful.Companies can now deduct the entire cost ofbuilding a manufacturing plantor agricultural structure in the first year of construction.

In the past, companies had to wait nearly 40 years to depreciate the full cost of factories and farm structure.But not anymore.This novel tax incentive will lead to a massive increase in industrial building and support reshoring of our supply chains.With that will comehigh-paying construction jobs.And when the project is done, there will be high-paying jobs inside those structures, where workers will be using the newest technologies thanks to the capex incentives.The effect will be an industrial boom.

tax on tips or overtime pay.By eliminating these taxes, working Americans will get to keep more of their hard-earned income.This is critical to restoring household finances to lower- and middle-class families, who suffered disproportionately under the prior administration.Real after-tax wages for blue collar workers are poised to soar thanks to Trump’s policies and economic vision.

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From higher take-home pay for hardworking families totax incentivesthat will drive a disinflationary boom, the One Big Beautiful Bill was engineered to Make America Affordable Again.This historic tax reform will ensure that Main Street prospers alongside Wall Street in President Trump’s Golden Age economy.

Joseph Lavorgna serves as counselor to Treasury Secretary Scott Bessent.As an economist, he has spent more than two decades in the financial services industry.