Senator Rand Paul, a Kentucky Republican, told Americans that they have lost purchasing power during President Donald Trump's second term, effectively making them poorer under this administration than during President Joe Biden’s time in office. We're adding less to the debt than we did under President Biden, but Americans' buying power is still significantly less than what it was,” Rand wrote on X. Inflation is one of the most politically sensitive issues facing American households because it directly affects their purchasing power, even when wages are rising.
Trump repeatedly campaigned on bringing down prices and has often compared his economic record with Biden's. However, whether Americans are "better off" under one president than another requires looking at multiple indicators, including inflation, wage growth and Americans’ ultimate purchasing power. Paul's criticism is particularly notable because it comes from a Republican senator rather than a Democratic opponent of Trump.
Paul said that inflation, rather than broader affordability concerns, is the root problem facing consumers. William Hall, a political science and business professor at Webster University, said he largely agreed with Paul's warning that Americans are worse off financially and economically under Trump. This administration's policies have produced tax changes that have increased resources for many middle- and higher-income households, while tariffs and military conflicts have contributed to higher consumer prices.” The answer of whether Americans are actually poorer under Trump than Biden depends on how it's measured.
Paul is correct that prices are still higher than they were before Trump's return to office. Inflation did not disappear when Biden left office, and continued price increases mean consumers are paying more for many goods and services than they did in early 2025. The cumulative impact of inflation over the past five years has seen people’s real incomes decline in grocery baskets buying less,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.
Consumer prices rose sharply between 2021 and 2023 as the U.S. and global economies emerged from the COVID-19 pandemic. Inflation peaked at more than 9 percent in mid-2022 before gradually cooling. Trump has said that gas prices were significantly higher under Biden.
"Gas prices were much higher under Biden than under ‘TRUMP,’" the president wrote on Truth Social earlier this month. "So were almost all other prices." He is correct that national average gasoline prices were generally higher during Biden's term than they have been during most of Trump's second term, but the war with Iran has narrowed the gap in recent months. On average, prices under Biden were slightly higher than under Trump so far, at $3.45 a gallon compared to $3.39, according to recent AAA figures.
Extract — continue reading at the source.
