For four years, Americans have lived under the shadow of an affordability crisis. The headlines have been filled with talk of inflation, rising costs, and the squeeze on household budgets. Politicians and pundits alike have offered slogans demanding “lower prices now,” as though affordability could be restored by simply cutting the cost of goods in half. But this is a misunderstanding of the problem. The crisis of affordability is not fundamentally about reducing prices. It is about increasing the income of Americans so that they can meet the costs of living with confidence.

Prices rise and fall with the tides of global markets, supply chains, and monetary policy. Inflation, which surged in the early 2020s, has cooled in recent years, but the higher price levels remain. Cutting prices dramatically would mean deflation, a dangerous spiral that discourages investment, shrinks wages, and deepens recessions. History teaches us that deflation is no cure—it is a poison. The real solution lies in raising incomes, expanding opportunities, and ensuring that American workers are positioned to thrive in a competitive global economy.

This is where Donald Trump’s economic path has distinguished itself. His policies are not aimed at artificially slashing prices, but at creating the conditions for sustained income growth. By encouraging capital investment in the United States, by reshaping tariff structures to reward domestic production, and by reducing regulatory burdens, Trump has sought to restore the American way: government as referee, not player, and the individual as the driver of prosperity.

Tariffs and Domestic Investment

Tariffs are often misunderstood. Critics frame them as taxes on consumers, raising the cost of imported goods. But tariffs, when strategically applied, serve a deeper purpose: they incentivize companies to build and produce within the United States. If a firm wants to sell to the American market without paying tariffs, it must invest here—constructing factories, hiring workers, and contributing to local economies.

This reshoring of production does more than protect industries. It creates jobs, raises wages, and strengthens supply chains. Construction workers build the plants, engineers design the systems, and line workers manufacture the goods. Each stage of the process generates income, not just for individuals but for communities. The ripple effect is profound: restaurants, schools, and local businesses all benefit from the increased economic activity.

By using tariffs as leverage, Trump has encouraged companies to see America not just as a consumer market, but as a production base. This is how affordability is restored—not by cutting prices, but by ensuring that Americans have the income to meet them.

Regulatory Relief and Opportunity

Another pillar of Trump’s approach has been regulatory relief. Regulations, while often well-intentioned, can impose heavy costs on businesses. Compliance expenses are passed down to consumers, raising prices, and they can stifle innovation by discouraging investment. By cutting unnecessary regulations, Trump has reduced these burdens.

A recent example in the auto industry illustrates the point. By rolling back certain rules imposed during the Biden years, Trump saved manufacturers over $1,000 per car. That savings can be passed to consumers, but more importantly, it frees capital for reinvestment in wages, research, and expansion. The result is not just cheaper cars, but stronger companies and better-paying jobs.

Regulatory relief is not about dismantling protections. It is about striking a balance where businesses can thrive, workers can prosper, and consumers can benefit. It is about creating an environment where opportunity flourishes.

Government’s Proper Role

Underlying this approach is a philosophy of government’s proper role. Government does not create jobs. It does not innovate, produce, or compete. Its best place is to stand back and let the American individual run with the opportunities they have. The government’s role is to create an environment of low regulation, fair tariffs, and reduced taxes—conditions that encourage investment and empower individuals.

Demand for Workers

As opportunities expand with more companies requiring workers, demand for labor rises, and the natural laws of supply and demand push wages and benefits upward as employers compete to attract and retain talent. At the same time, more people move off social assistance and into the workforce, reducing government expenditures on welfare while increasing tax revenues. This dual effect strengthens public finances—providing more resources to pay down debt—while empowering individuals with higher incomes. In this way, affordability is not restored by slashing prices, but by creating a thriving labor market where opportunity fuels prosperity and wages rise faster than inflation.

In summary, the affordability crisis is not something that can be solved overnight by demanding lower prices, nor should it be. Rising prices are a normal feature of a healthy economy, and the true solution lies in increasing the income of American workers so that they can meet those costs with confidence. The government that created the problem cannot be trusted to fix it. Real solutions come when power is restored to the American people—because it is the ingenuity, resilience, and determination of free citizens that will ultimately solve the affordability crisis and secure lasting prosperity.

Image from Grok.