Trump says America ‘poised for an economic boom’

In a prime-time address Wednesday, President Donald Trump argued the “affordability crisis” facing American households is not a new phenomenon, but the lingering result of inflation unleashed during the Biden administration.

At the same time, Trump said his administration has set the table for “an economic boom the likes of which the world has never seen” in 2026.

The speech touched on prices, wages, border enforcement and economic growth.  

Trump sought to reframe the national debate away from affordability as a standalone concept and back toward inflation caused by the Biden administration as the root cause.    

“Eleven months ago, I inherited a mess and I’m fixing it,” Trump began. “When I took office, inflation was the worst in 48 years, and some would say, in the history of our country, which caused prices to be higher than ever before, making life unaffordable for millions and millions of Americans” 

He added, “This happened during a Democrat administration and it’s when we first began hearing the word ‘affordability.’” 

On the administration’s economic record, Trump pointed to indicators suggesting improvement, including rising employment and wage growth.  

Trump noted that more people are working today (163,741,000) than at any point in American history. 

He emphasized net job creation of 2.5 million jobs since he was elected – in the private sector with American workers – even as the U.S. government was deporting 2 million illegal immigrants. 

And while unemployment rates have gone up some, even that is a sign of optimism: 3.2 million Americans have re-entered the job market since last year.  

Outside of Covid reopening distortions in 2020–2021, a 3.3 million year-over-year increase in the labor force is unusually large. 

The president also highlighted wage gains among factory workers, construction workers and miners, arguing that pay increases are now outpacing inflation, a key metric for restoring household confidence. 

“Under Biden, real wages plummeted by $3,000. Under Trump, the typical factory worker has seen a wage increase of $1,300,” said Trump. “For construction workers, it’s $1,800. For miners, we’re bringing back clean, beautiful coal; it’s $3,300. And for the first time in years, wages are rising much faster than inflation.” 

Wage growth is important because once inflation hikes prices, prices don’t go back to pre-inflationary levels. The only solution for ordinary citizens is for wages to go up faster than inflation. 

At the same time, public perception has not always aligned with these indicators. 

The government shutdown earlier this year has complicated economic messaging, limiting the availability of official data and allowing critics to assert the economy is weakening without up-to-date numbers to substantiate those claims. 

For example, the president focused heavily on price relief, citing declines in energy costs, grocery prices and select consumer goods. 

At least on groceries, part of the problem is that the recent government shutdown prevented the USDA from updating prices until after the new year. The lack of data transparency has made it difficult to track inflation at the grocery store, thus allowing the media to use anecdotal evidence to support the notion of widespread inflation. 

Trump also said efforts to lower prescription drug prices through direct negotiation and a “most favored nation” pricing model, could have measurable effects on healthcare costs if sustained.  

Still, Trump’s rhetoric occasionally outran what current data can definitively confirm.  

Claims of rapid and universal price declines, while consistent with easing inflation pressures, may understate the reality that prices remain elevated compared to pre-inflation levels. 

On that front, some forward-looking indicators support the administration’s optimism, however.  

Recent surveys from WalletHub suggest that U.S. consumers are increasingly confident about their financial prospects in 2026, with expectations of improved household finances and a stronger economy. 

The WalletHub Economic Index increased by nearly 4% between November 2024 and November 2025. 

“The nearly 4% increase in consumer sentiment over the past year is an encouraging sign that our economy is recovering from the damage it suffered as a result of the pandemic and inflation,” said WalletHub Analyst Chip Lupo. “People who have high financial confidence are likely to spend more money and reduce their debts, both of which are good for the economy as a whole.” 

While sentiment does not guarantee outcomes, improving confidence often accompanies labor market strength and easing inflation pressures. 

It’s also important to note that more widely followed measures of consumer confidence are considerably more pessimistic, reflecting a general negativity about the American economy that’s been persistent since the pandemic. 

The evening address was characteristic of Trump, blending policy detail with sweeping claims and a harsh partisan contrast between himself and the Democrats.  

Yet beneath the familiar rhetoric, the core economic argument was straightforward: inflation damaged affordability but is no longer accelerating, and the path forward depends less on prices falling than on rising income. 

“When the world looks at us next year, let them see a nation that is loyal to its citizens, faithful to its workers, confident to its identity, certain to its destiny and the envy of the entire globe,” Trump concluded, before wishing Americans a Merry Christmas and Happy New Year. 

Whether that message resonates will depend on how quickly wage and job growth translates into real relief for households. 

For now, the administration is betting that improving fundamentals, combined with growing consumer optimism in the background, will ultimately outweigh lingering frustration over prices that remain stubbornly high. 

Image credit: The White House.