The 2024 presidential election saw Donald Trump’s victory attributed to his promises of an America First foreign policy and inflation control. Yet, a year later, prices remain high, and President Trump appears more focused on overseas meddling than on the American people. This has benefited Democrats winning governor races in Virginia and New Jersey, with self-described Democratic socialist Zohran Mamdani securing the New York City mayoral race by advocating “affordability.”
President Trump has proposed altering federal housing regulations to encourage lenders to offer 50-year mortgages. While this could reduce monthly mortgage payments by over a hundred dollars for a median-priced home, it would double interest payments over the mortgage’s lifetime. Though beneficial short-term, this longer-term proposition is disadvantageous for potential homeowners.
Additionally, Trump’s plan to use revenue from tariffs to provide most Americans with at least $2,000 may aid struggling individuals but fails to address damage inflicted on the American economy by these tariffs. He also announced plans to reduce tariffs on countries like coffee, bananas, and other agricultural products, acknowledging high tariffs have increased prices and harmed Americans. Hopefully, Trump will offer more relief from tariffs, including support for American manufacturers relying on imports for raw materials.
Democrats discuss “affordability” but avoid free-market policies that produce abundance and affordability, instead favoring government interventions in the marketplace—though history shows such interventions cause price increases and shortages. For instance, New York City Mayor-elect Mamdani believes addressing housing costs requires new rent control price controls, despite understanding that existing rent control laws contribute to high costs. Another example is congressional Democrats’ “solution” to Obamacare premium increases: extending the 2021 “temporary” subsidies from covid relief legislation. The Republican alternative appears to be sending Americans money to pay medical costs.
Politicians of both parties ignore the true cause of price inflation: the Federal Reserve. When the Fed increases the money supply, it reduces the dollar’s value, raising the average American’s cost of living. A major reason for this is monetizing federal debt by purchasing Treasury securities. To make America affordable again, the president and Congress could reduce federal spending and start paying down the over $38 trillion debt. Congress should also pass legislation forbidding the Federal Reserve from purchasing federal debt.
Congress should also pass the Audit the Fed bill, legislation exempting precious metals and cryptocurrencies from capital gains taxes, and repeal any laws preventing Americans from using alternative currencies. Auditing and ending the Federal Reserve is the true affordability agenda.
Ron Paul is a former U.S. congressman from Texas. This article originally appeared at the Ron Paul Institute for Peace and Prosperity and is reprinted here with permission.
