Our most recent book is The Comeback: The 2024 Elections and American Politics. It includes a chapter on congressional and state elections. Despite gerrymandering wins, things look bad for the GOP in part because the Iran War has gone badly. Because of the war, the economy is foundering.
President Donald Trump told reporters on Tuesday that he is not weighing the economic burden of the Iran war on everyday Americans when negotiating a deal with the country’s leadership.
Speaking on the White House South Lawn before departing for a diplomatic trip to China, Trump was asked to what extent “Americans’ financial situations” were motivating him to make a deal with Iran.
“Not even a little bit,” Trump replied. “The only thing that matters when I’m talking about Iran — they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing — we cannot let Iran have a nuclear weapon. That’s all.”
A new CNN poll conducted by SSRS finds that 77% – including a majority of Republicans – say that Trump’s policies have increased the cost of living in their own community. Roughly two-thirds of Americans say that Trump’s policies have worsened economic conditions in the country. And Trump’s approval rating stands at 30% on the economy, a career low.
The big picture: The affordability crisis that fueled Trump's return to power has become a five-alarm threat to his presidency — even as GDP growth, fueled largely by the AI boom, remains strong on paper.
1. Prices are surging: Inflation spiked to 3.8% in April as the Iran war pushed the national average price of gas above $4.50 a gallon.Economists fear the energy shock is beginning to ripple through the broader economy, pushing up the cost of groceries, airfare, electricity and other essentials Americans rely on every day.
2. Paychecks are shrinking: Tuesday's inflation report showed that prices are outpacing wages for the first time in three years, erasing gains in real purchasing power.American households have absorbed a rise of nearly 30% in consumer prices since the pandemic — a cumulative toll that has never fully healed, Axios' Courtenay Brown reports.
3. Debt is mounting: Americans are increasingly leaning on credit cards and loans to absorb rising costs, with consumer borrowing posting its biggest monthly jump in March since late 2022.The personal savings rate fell to 3.6% in March, its lowest level since 2022, as lower-income households burn through savings to cover essentials.
4. Confidence is collapsing: Consumer sentiment has cratered to record lows as Americans grow pessimistic about the economy and their own financial futures.A new YouGov/Economist poll found that 59% say the economy is getting worse, while just 15% say it's improving. More than two-thirds of Americans say the country feels "out of control."
5. Main Street is souring: The National Federation of Independent Business says optimism around future business conditions and expansion plans has fallen to its lowest level since before Trump's reelection.
