Smart Trade Insights
  • Business
  • Economy
  • Investing
  • Politics
Top Posts
Tech 5: US Government Strikes Big Tech Deal,...
Crypto Market Update: Bitcoin Pulls Back After New...
Playboy moving its headquarters to Miami Beach and...
Crypto Market Update: Bitcoin’s New High, Ethereum ETFs...
Top 5 Small-cap Pharma Stocks of 2025
Brien Lundin: Gold at New US$3,000 Floor, Silver...
Brunswick Exploration Consolidates Mirage Ownership
Westport Files Preliminary Short Form Base Shelf Prospectus...
Element79 Gold Corp Announces Corporate Update and Strategic...
OPINION — Goldenomics 103: Gold Protects and Performs
  • Business
  • Economy
  • Investing
  • Politics

Smart Trade Insights

Politics

Trump’s new absurdity: ‘Kamala price hikes’ cost a typical family $28,000

by admin August 19, 2024
August 19, 2024
Trump’s new absurdity: ‘Kamala price hikes’ cost a typical family $28,000

“Did you know the Kamala price hikes have cost the average American family $28,000?”

— Donald Trump, in a TikTok video, Aug. 15

“As a result of Kamala’s inflation price hikes, they’ve cost the typical household a total of $28,000. These are numbers coming from the government. They are not coming from me.”

— Trump, media event in Bedminster, N.J., Aug. 15

Former president Donald Trump rarely updates his political rhetoric — he’s using many of the same lines against Vice President Kamala Harris in 2024 that he used against Joe Biden in 2020 — so it’s always news when a fresh talking point emerges.

In recent days, Trump has claimed that the “average American family” or the “typical household” has suffered a hike in spending of $28,000 under the Biden presidency.

The Trump campaign did not respond to queries about how this was calculated. We think we may have figured it out. It makes little sense.

The Facts

In April 2023, we fact-checked a claim by then-House Speaker Kevin McCarthy (R-Calif.) that “families have lost the equivalent of $7,400 worth of income.” That statement came via a dubious statistic generated by E.J. Antoni, a research fellow at the Heritage Foundation.

Other economists were skeptical of Antoni’s math — a combination of two calculations involving purchasing and borrowing costs — and pointed to more reliable metrics, such as real disposable personal income per capita. Many such statistics are affected by the pandemic, adding to the complexity. But real disposable income per capital now is up about $3,000 since March 2020, just before temporary covid relief payments start showing up in the data and skew it for more than a year.

Now, just 16 months later, as inflation is easing, Trump suddenly touts a figure almost four times McCarthy’s number. Trump claimed these were “government numbers,” but economists we contacted scratched their heads about where this could have come from.

One economist suggested that Trump might have been taking total personal consumer expenditures and dividing by total households. But that doesn’t exactly match $28,000, and personal consumer expenditures includes items (stuff the government buys for people like health care, for example) that would exaggerate the impact.

In any case, the experts said Trump is ignoring income gains that have accompanied the rise in prices, putting the finances of many Americans in the net positive territory.

Moody’s economist Mark Zandi, for instance, provided a spreadsheet of data on real personal income less transfer payments from the government per capita. “It has increased 4.2 percent between January 2021 and June 2024,” he said in an email. “A little more than one percent per annum. A solid performance.”

Eventually, we found one possible source for Trump’s figure. In a July blog post, Antoni offered an updated estimate of his statistic — that a typical family lost “about $8,000” in income over the last 3½ years.

That’s still significantly lower than Trump’s $28,000. But the $28,000 number does appear in Antoni’s post.

Antoni focused on a July survey from Bankrate.com that found the average American said they needed an annual income of $186,000 to live comfortably.

“That’s a shocking figure — more than twice what the average full-time worker earns,” Antoni wrote. “Even in a household with two parents pulling in the average full-time salary, they’d still be about $28,000 short annually.”

Could that be the source of the $28,000 figure? It seems absurd, but after nine years of fact-checking Trump we’ve uncovered many slapdash figures. We sent Antoni’s blog post to a Trump campaign spokesman, asking if this was the source of Trump’s number, and did not get a response. Antoni also did not respond to a request for comment.

Oddly, when Bankrate.com conducted this same survey in 2023, Americans said they needed $233,000 a year to be financially secure. So in one year, the surveys indicated a $47,000 improvement — perhaps a sign that as inflation eased, Americans felt less stressed about their finances. A representative for Bankrate.com did not respond to a request for comment.

Earlier this year the Treasury Department released a report that looked at what had happened to the purchasing power of American households since 2019, just before the pandemic. “As of the end of 2023, the median American worker could afford the same goods and services as they did in 2019, with an additional $1,400 to spend or save per year,” the report said.

That’s because, overall, wages have increased more than price inflation.

The Pinocchio Test

It’s never a good sign when a presidential campaign refuses to explain the math behind a new talking point. But it would be par for the course for Trump to misunderstand a random statistic in a blog post and try to twist it for political purposes. In any case, he’s ignoring the gains in income that have exceeded price inflation.

Four Pinocchios

(About our rating scale)

Send us facts to check by filling out this form

Sign up for The Fact Checker weekly newsletter

The Fact Checker is a verified signatory to the International Fact-Checking Network code of principles

This post appeared first on washingtonpost.com

previous post
Former GOP Rep. Barbara Comstock says she’ll vote for Kamala Harris
next post
Harris and Walz launch pre-convention bus tour in western Pennsylvania

You may also like

Supreme Court allows HHS to divert funds over...

September 4, 2024

The candidate taking on an election denier —...

October 10, 2024

Trump keeps talking about criminalizing dissent

September 25, 2024

Harris and Biden to address Black leaders amid...

September 15, 2024

No amount of evidence will convince Republicans of...

October 4, 2024

Biden calls out Rubio for false claim that...

October 5, 2024

Trump falsely calls Schumer a ‘proud member of...

August 1, 2024

When voters consider gender, enthusiasm for Harris surges...

September 12, 2024

With voting under attack, Arizona schools don’t want...

August 6, 2024

Harris to address the venue where Trump questioned...

September 18, 2024

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Tech 5: US Government Strikes Big Tech Deal, Perplexity Plots Expansion

      August 17, 2025
    • Crypto Market Update: Bitcoin Pulls Back After New High, Ethereum ETF Inflows Hit Nearly US$3 Billion

      August 17, 2025
    • Playboy moving its headquarters to Miami Beach and opening a new club

      August 17, 2025
    • Crypto Market Update: Bitcoin’s New High, Ethereum ETFs Outpace Bitcoin 5-to-1

      August 16, 2025
    • Top 5 Small-cap Pharma Stocks of 2025

      August 16, 2025
    Promotion Image

    banner ads

    Categories

    • Business (818)
    • Economy (829)
    • Investing (2,635)
    • Politics (737)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: smarttradeinsights.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2025 smarttradeinsights.com | All Rights Reserved