WSJ Opinion: Potomac Watch Donald Trump Tries to Recover on Inflation and Affordability
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Dec 18, 2025 Matthew Continetti, a Wall Street Journal columnist known for his sharp political insights, joins Paul Gigot to dissect Donald Trump's recent Oval Office address on affordability. They explore whether Trump's optimism about the economy will resonate with voters facing inflation. The conversation dives into real wages, immigration's impact on housing costs, and Trump's evolving relationship with Republican principles. Continetti also highlights Trump's notable and regrettable decisions of the past year, providing a comprehensive look at the political landscape.
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Trump's Inflation Pitch Versus Reality
- Donald Trump aimed to reassure voters by claiming falling prices and economic gains since he took office.
- Matt Continetti warns cumulative inflation means many Americans remain worse off despite recent declines.
Real Wages Still Lag
- Continetti highlights that real wages remain below pre-Biden levels despite partial recovery.
- He says Trump needs to deliver roughly $2,000 more per household to close the pain voters felt under Biden.
Prioritize Real Income Gains
- Do focus on restoring real household income rather than only touting headline inflation rates.
- Aim to close the remaining wage gap so voters tangibly feel improved affordability.