Trump Economic Adviser Insists 'Purchasing Power Has Gone Up' as Families Drown in Bills

Donald Trump's director of the National Economic Council, Kevin Hassett, has faced significant criticism after claiming that purchasing power has risen under the administration.

He made the remarks during a CNBC interview to defend tariff policies and broader economic management. Yet for many Americans, the statement rang hollow, as households continue to struggle with rising costs and stagnant wages.

Tariffs and Consumer Costs

The controversy follows Trump's admission that tariffs imposed on trading partners had raised costs for US consumers. In response, the administration announced broad exemptions on food imports to ease price pressures. Economists noted that this was effectively an acknowledgement that tariffs act as a tax on consumers, contradicting earlier claims that food prices were falling.

Pressed by CNBC host Joe Kernen, Hassett argued that exemptions were consistent with supply and demand economics. He cited examples such as coffee production in Hawaii, suggesting that onshoring certain goods was impractical. Many criticised his explanation as incoherent, with commentators describing it as evasive and disconnected from reality. Hassett also expressed astonishment that the administration was being blamed for inflation, instead pointing to Obamacare as the source of rising costs.

TikTok Backlash

The interview quickly spread across social media, with TikTok users responding in force. One commenter asked bluntly: 'Who's wages went up?' while another quipped: 'Mine went up when I got a second job.' Others dismissed Hassett's remarks as 'lies after lies' and accused the administration of being deliberately misleading.

Many users highlighted the disparity between official claims and lived experience. One wrote: '"Purchasing power is up'" meanwhile 23 states are officially in a recession and half of all American spending is being done by the top 1%.' Another added: 'Even if income went up $1200, that doesn't cover 3% inflation.'

Comments revealed the depth of frustration among ordinary families. Users described living paycheque to paycheque, taking on debt, and working multiple jobs to stay afloat. One explained: 'I received a $1 raise this year which is roughly $175 extra a month. Sounds nice right? Wrong! House payment went up $50, internet/utilities up $35, phone and streaming up $30, car insurance up $70 with a clean record and none of that includes increased grocery prices. In whose world is purchasing power going up?! Oh I know... the 1%.'

Others pointed to layoffs, frozen salaries, and rising healthcare costs. One user noted: 'Wage increases?! I got laid off.' Another added: 'My health insurance just went up $8k annually.'

Disparity Between Rich and Poor

Several commenters argued that any wage increases were concentrated among the wealthy. 'He's only talking about the people that make $400,000 a year or more. That's the only people they care about,' one wrote. Another observed: 'When they say wages went up, they mean the national average that includes all of the top 5% earners in the country who since the pandemic have added over $2 trillion.'

The backlash underscores a wider disconnect between the government's rhetoric and the public's reality. While Hassett insisted that purchasing power has risen, families continue to report difficulty affording essentials such as food, housing, and healthcare. The contradiction has fuelled criticism that the administration are out of touch with everyday economic struggles.

With inflation and cost-of-living pressures persisting, the administration's handling of tariffs and wage policy will remain under scrutiny. Hassett's remarks may have been intended to reassure, but instead they have intensified scepticism and anger among citizens who feel left behind.