The U.S. economy is currently facing several challenges, including a significant trade deficit and sluggish growth. In the fourth quarter of 2025, gross domestic product grew by 1.4 percent, while inflation reached 2.7 percent. Despite these figures, President Donald J. Trump has described the current period as a “golden age.” The price of gold, often seen as a safe haven during economic uncertainty, rose to $5,269 per ounce on February 23, 2026—three times its value in December 2021—indicating public concern about the economy’s direction.
A survey conducted by the Certified Financial Planner Board of Standards in 2023 found that 90 percent of respondents were worried about affordability. Another survey from December 2025 by The Associated Press-NORC Center for Public Affairs Research showed that 68 percent disapproved of President Trump’s handling of the economy, with his overall approval rating dropping to a record-low 31 percent.
Rising costs are affecting many Americans, particularly those in lower and middle income brackets. While officials have publicly denied an affordability crisis, there are ongoing efforts to address rising living expenses through various policy measures such as attempts to lower pharmaceutical prices, issuing $2,000 stimulus checks, maintaining tariffs on imports, capping credit card interest rates, and limiting insurance company profit margins at the state level.
However, these initiatives have faced criticism regarding their effectiveness.
Tariffs have been identified as a key factor contributing to higher consumer prices. According to economists at the Federal Reserve Bank of New York and findings from the Congressional Budget Office, consumers bear most of the cost increases resulting from tariffs. White House Economic Adviser Kevin Hassett responded to these findings by saying that those who authored such reports should be punished: “Don’t like the truth? Blame the messenger.”
To counteract higher prices caused by tariffs and other factors, one proposal included sending $2,000 stimulus checks to Americans earning less than $100,000 per year—a measure estimated to cost over $300 billion.
In another effort aimed at reducing healthcare costs, President Trump launched TrumpRx on February 5, 2026. In a speech given in December 2025 he said: “It’ll be numbers that nobody can even imagine. We’re going to get the drug prices down not 30 or 40 percent, which would be great. Not 50 or 60, no. We’re going to get them down 1,000 percent, 600 percent, 500 percent, 1,500 percent—numbers that are not even thought to be achievable.” Early reports indicate that only weight loss and fertility drugs are offered at lower prices through this program.
Additional measures include proposals for a national cap on credit card interest rates and introducing new mortgage products such as a proposed federal plan for a fixed-rate home loan with a term of up to fifty years. The average first-time homebuyer is now forty years old; under this plan they would not own their home until age ninety if they live that long.
States have also taken action regarding insurance premiums by enacting laws that cap insurer profit margins and require companies to return excess profits to policyholders:
– Florida defines excess profit for automobile insurers as underwriting gains exceeding anticipated profits plus five percent over three years; Progressive recently announced it will return up to $950 million in credits due in part to mild hurricane seasons and tort reforms.
– Georgia is considering similar legislation (HB1274) where profits above five percent must be returned.
– New Jersey applies an even stricter standard with a seven-year lookback period and limits excess investment income above two-and-a-half percent.
Some experts point out issues with these laws: insurers may adjust loss reserves across different years or face capped profits without protection against losses beyond set thresholds.
The review concludes there are no simple solutions for addressing rising living costs in America and suggests reconsidering current populist policies and reducing tariffs as potential steps forward.
