Economy, Wages, and Immigration: Key Topics Explored
The recent speech by President Donald Trump highlighted several economic and immigration-related topics that warrant further examination. Key claims regarding wages, military strength, and immigration patterns were presented in a round-up of events from Trump’s second administration.
Wages and Inflation
In his address, Trump claimed that “wages are going up much faster than inflation.” While wage growth has been positive, it has slowed significantly this year. In January, wages increased at a rate of 4.1%, but by November, this had dropped to 3.5%. Currently, inflation stands at 3.0% and has been rising monthly since April. It’s important to note that during the previous administration, higher inflation rates were met with wages that generally kept pace with the increased cost of living.
Immigration Claims Under Scrutiny
Trump stated that the Biden administration left the border “open,” leading to an “invasion” of 25 million people. This assertion is misleading; evidence shows that approximately 7.4 million undocumented immigrants crossed the border without authorization during Biden’s term. Including those who entered through authorized points of entry but without documentation raises the number to around 10.2 million. Furthermore, about 800,000 immigrants entered legally through designated programs created under the Biden administration.
Price Controls on Goods
Trump indicated that “the price of eggs is down 82% since March,” a statement that contradicts available data. The actual decline is approximately 43.9% according to the Consumer Price Index. On another topic, he claimed that gasoline prices had dropped below $2.50 in many areas, whereas the average nationwide price is around $2.89.
Thanksgiving Meal Costs
While Trump said the price of a Thanksgiving turkey was down 33%, this is also inaccurate. The decrease for national brands is only 3.7%. Overall, the cost of Thanksgiving meals declined by 2-3% this year compared to 2022.
Investment Figures and Job Creation
Trump boasted of securing “$18 trillion of investment” into the United States, a figure experts believe is significantly inflated. The White House cites a more realistic figure of $9.6 trillion, while independent analyses suggest even lower estimates. Moreover, Trump claimed that all net job creation post-election benefitted American citizens exclusively. This is a complex assertion, as it does not account for the many foreign-born individuals who have gained U.S. citizenship.
Drug Pricing Negotiations
Trump claimed to have negotiated drug prices down by extraordinary margins—up to 600%. However, there is little data available to confirm these claims. Pfizer noted that its agreement with the administration could lower costs by an average of 50% and potentially up to 85%, which falls short of Trump’s assertions. In the realm of weight-loss drugs, agreements reached have not yet materialized into significant price drops.
Tariffs and Trade Agreements
Trump mentioned tariffs imposed on drug imports from the European Union, which have ranged as high as 20%. Before his administration, many of these imports were tariff-free. Recent agreements have expectedly lowered some tariffs to 0%, yet significant tariffs still remain for various other trade partners.
As the economic landscape continues to evolve, the implications of these claims and policies remain a topic of significant interest and debate among economists and the public alike.
