Contributor: The Real Answer to the Republican ‘Resistance Problem’

Last week’s election results are a reality for the Trump administration. Democrats not only picked up scores in deep blue counties. With electricity prices rising, they Flipped Two of Georgia’s utility-regulator seats in rare state victories. In New York City, more than half of voters in exit polls said their high anxiety is the cost of living. Seven out of 10 Americans say Their food bills have gone up in the past year. Six in 10 say their utility costs have increased.

So, yes, the affordability issues that dominated the 2024 election remain central. But President Trump insists there is no problem. According to Walmart, “Thanksgiving dinners under Trump are 25 percent lower than 2024 Thanksgiving dinners under Biden.” announcement Actually social. “My expense[s] They are lower than the Democrats in everything, especially oil and gas! So the issue of ‘competence’ of the Democrats is dead!

Trump pointed to Walmart’s “inflation-free Thanksgiving meal,” saying feed 10 people for $40, plus fees. This year’s standard basket is less expensive than last year’s eight-person bundle, but it’s no more have Pecan pie, whipped toppings, muffin mix, chicken seasoning, chicken broth, sweet potatoes, onions and celery, all quietly removed.

The 2025 food basket is an apt metaphor for the broader economy. The President insists that “Every price is lowBut this is wrong. Although chicken breast was slightly less than a year ago, eggs, bacon, orange juice and meat are all more expensive, Trump’s policy did not cause these prices to rise, but they are sure that they will continue.

Trump’s claim that “We are full of numbersAbout inflation, which no longer dominates the headlines. But it still affects people. Starting in 2021, the average hourly earnings are An increase of about 21.8%. Consumer prices have risen sharply along with food prices Up almost 30% Since 2020.

When Trump officials say inflation is low, they mean the recent 3% annual consumer price index reading is not the same as the 9.1% experienced during the Biden years. They ignore that this is up from 2.3% last spring.

At constant 3% inflation, a dollar is worth only 74 cents after 10 years. Consumers experience this as a permanent increase in the cost of living. This slow erosion is what voters feel when they buy groceries, pay rent or renew insurance.

The president’s tariffs don’t help. Remember, these are taxes that Americans pay to import things. Like other taxes, they raise the costs of producing goods and the final prices consumers pay—and not just for imported goods. When foreign products become more expensive, safe American companies can afford more. When foreign steel is taxed, US steel prices rise.

Higher costs ripple through the economy and cascade through supply chains. Cars, appliances and construction materials become significantly more expensive. Since tariffs also apply to materials used in building housing and infrastructure, they increase construction costs.

Irregular, day-to-day tariff rate changes – whether it’s 35% on Friday, 45% on Saturday or 25% with an exception on Sunday – add another hidden cost in the form of uncertainty. We pay for it through higher prices and lower investment.

One reason tariffs and the uncertainty they create are medical costs, and by extension health insurance premiums. Some insurers, anticipating higher drug and medical supply prices and a slower economy, are already pushing those costs to 2026 prices. Among the insurers that have done so, health system tracker Estimates That tariff-related pressure added nearly 3 percentage points for next year, or about a fifth of all their proposed premium increases.

The Democrats’ track record is not good. Biden’s spending splurge triggered an inflationary crisis. The party has long pursued meritocracy through asset transfers and subsidies while maintaining extreme regulations that limit economic output. The result is higher prices.

Republicans once championed free trade and competition to create an abundance of goods, keep prices low and spur growth. Their vision hinged on opening up production, innovation and trade rather than subsidizing demand.

With notable exceptions like energy deregulation and AI policy, Trump-era statism and protectionism take a page from the Democrats’ interventionist playbook: imposing tariffs that Limited supplyPicking winners and increasing costs. The president even offered to send out $2,000 tariff waiver checks to create the illusion that the tariffs aren’t making us any poorer.

Voters know better than to manipulate prosperity. They see that prices are still high and rising, wages are still stagnant and tariff and transfer schemes cannot determine true affordability. If both parties treat the economy as a branch of campaign strategy, Americans will pay more for less in checkout lines — and incumbents will pay more at the ballot box.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. This article was produced in collaboration with The Creators Syndicate.