NEC Director Kevin Hassett: Purchasing power dropped by about $3,000 under Joe Biden because the wages didn't keep up with prices. Under President @realDonaldTrump, it's already gone up by about $1,200. We understand that people still feel the pain of the high prices, but we're closing the gap fast.
Video transcript
>> Well, first of all, if you look at the history of inflation, what happened was that there was right away Democrat spending in Joe Biden's term. And we got inflation up almost to 10%, it averaged 5% over the four years. And that has created a situation where, for example, mortgage rates went up. And so the typical payment for a monthly mortgage payment almost doubled. But a bag of groceries that cost $400 a month when President Trump left office is $500 or $515 when President Trump came back this time. And so that there's this really big hole that's been dug. And then the question you could also ask as an economist is, how do I summarize all those different prices and everything? And one of the ways you could do it is just look at purchasing power, the real wage. Purchasing power, I'll just finish this and then I'll get back to you. The purchasing power dropped by about $3,000 under Joe Biden because the wages didn't keep up with prices. Under President Trump, it's already gone up by about 1,200. We understand that people still feel the pain of the high prices, but we're closing the gap and filling the gap fast.
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