Republican Tells Americans They’re Poorer Under Donald Trump Than Joe Biden - Newsweek

Senator Rand Paul, a Kentucky Republican, told Americans that they have lost purchasing power during President Donald Trump's second term, effectively making them poorer under this administration than during President Joe Biden’s time in office.

“The $40 trillion deficit translates to more than $360,000 per American taxpayer. We're adding less to the debt than we did under President Biden, but Americans' buying power is still significantly less than what it was,” Rand wrote on X.

“In fact, if you're making $50K/year, you're poorer than you were a few years ago because inflation compounds over time.”

This is at odds with Trump's repeated statements that inflation has been brought under control and Americans are experiencing an economic recovery after what the president has described as an "inflation nightmare" inherited from former President Joe Biden.

“We inherited from the last administration an economic catastrophe and an inflation nightmare," Trump said in his first address to Congress after returning to office.

Inflation is one of the most politically sensitive issues facing American households because it directly affects their purchasing power, even when wages are rising.

Trump repeatedly campaigned on bringing down prices and has often compared his economic record with Biden's. However, whether Americans are "better off" under one president than another requires looking at multiple indicators, including inflation, wage growth and Americans’ ultimate purchasing power.

Paul's criticism is particularly notable because it comes from a Republican senator rather than a Democratic opponent of Trump.

Paul said that inflation, rather than broader affordability concerns, is the root problem facing consumers.

William Hall, a political science and business professor at Webster University, said he largely agreed with Paul's warning that Americans are worse off financially and economically under Trump.

“I also firmly believe that, at this stage in the Trump administration, we can no longer realistically continue to place the primary blame for our nation's economic woes on an administration that ended over two years ago,” Hall told Newsweek. “Trump must now take responsibility for the status of our nation's current economic condition.”

The United States has surpassed $40 trillion in total debt, and this year's roughly $2 trillion deficit is essentially unchanged from last year once accounting for calendar differences.

“Rand Paul is certainly accurate on the fundamental problem with purchasing power, which is inflationary pressures create an environment where increasingly Americans' paychecks are equating to less value,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.

“Still, the context of where the national deficit factors in is a tad trickier. This administration's policies have produced tax changes that have increased resources for many middle- and higher-income households, while tariffs and military conflicts have contributed to higher consumer prices.”

The answer of whether Americans are actually poorer under Trump than Biden depends on how it's measured.

Paul is correct that prices are still higher than they were before Trump's return to office. Inflation did not disappear when Biden left office, and continued price increases mean consumers are paying more for many goods and services than they did in early 2025.

“People are going to the grocery store and noticing these things. The cumulative impact of inflation over the past five years has seen people’s real incomes decline in grocery baskets buying less,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “The main issue with inflation remains the wage/cost spiral where a wage increase pushes prices higher.”

However, much of the cumulative inflation Americans experienced occurred during Biden's presidency.

Consumer prices rose sharply between 2021 and 2023 as the U.S. and global economies emerged from the COVID-19 pandemic. Inflation peaked at more than 9 percent in mid-2022 before gradually cooling.

Trump has said that gas prices were significantly higher under Biden.

"Gas prices were much higher under Biden than under ‘TRUMP,’" the president wrote on Truth Social earlier this month. "So were almost all other prices."

He is correct that national average gasoline prices were generally higher during Biden's term than they have been during most of Trump's second term, but the war with Iran has narrowed the gap in recent months.

On average, prices under Biden were slightly higher than under Trump so far, at $3.45 a gallon compared to $3.39, according to recent AAA figures.

The more complicated question is whether Americans have become poorer overall.

Even after inflation cooled, many households continued to report frustration with higher prices because costs have not returned to their previous levels. Instead, prices typically continue rising at a slower rate.

That means a consumer paying substantially more for groceries, housing or insurance than they did in 2020 may still feel worse off even if inflation has technically calmed down.

“I wouldn't say the data show Americans, as a whole, are poorer than when Biden left office. Inflation adjusted income and wages are slightly higher. And household wealth is at a record,” Michael Ryan, a finance expert and founder of MichaelRyanMoney.com, told Newsweek.

“But that doesn't mean the financial pain is imaginary. Over the past year, prices have been rising faster than hourly pay. And energy costs in particular have jumped. Trump's tariffs are one identifiable piece of that story.”

Wages increased significantly during Biden's presidency and continued rising into Trump's term, so it may be overly simplistic to say all Americans are poorer under Trump than under Biden.

Public opinion on the matter is deeply divided.

A Harvard CAPS/Harris Poll this summer found voters split almost evenly on whether the economy is better under Trump than it was under Biden.

Ryan said the midterms could reveal Americans’ widespread frustrations.

“Heading into the midterms, I'd watch one thing more than the political claims: do people's paychecks start consistently outrunning their bills again? If they don't, households can keep feeling poorer even while the country's aggregate wealth keeps climbing,” Ryan said.

Inflation and wage growth are likely to keep being central economic issues heading into the 2026 midterm elections.

Whether Americans feel financially better off under Trump than they did under Biden may ultimately matter more politically than traditional economic indicators.

“You will likely see a changeover in power as you do most election cycles,” Thompson said. “Americans tend to do this to help balance out the government and reduce the chances of one party gaining too much power.”

Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here. Contact Newsweek editors on this story: Edward T. Cummins