| |
Trump Addresses Economy 12/18 06:11
WASHINGTON (AP) -- President Donald Trump delivered a politically charged
speech Wednesday carried live in prime time on network television, seeking to
pin the blame for economic challenges on Democrats while announcing he is
sending a $1,776 bonus check to U.S. troops for Christmas.
The remarks came as the nation is preparing to settle down to celebrate the
holidays, yet Trump was focused more on divisions within the country than a
sense of unity. His speech was a rehash of his recent messaging that has so far
been unable to calm public anxiety about the cost of groceries, housing,
utilities and other basic goods.
Trump has promised an economic boom, yet inflation has stayed elevated and
the job market has weakened sharply in the wake of his import taxes. Trump
suggested that his tariffs -- which are partly responsible for boosting
consumer prices -- would fund a new "warrior dividend" for 1.45 million
military members, a payment that could ease some of the financial strains for
many households. The amount of $1,776 was a reference to next year's 250th
anniversary of the signing of the Declaration of Independence.
"The checks are already on the way," he said of the expenditure, which would
total roughly $2.6 billion.
Presidential addresses to the nation carried on network television are
traditionally less partisan than rally speeches, but Trump gave a condensed
version of his usual political remarks.
Flanked by two Christmas trees with a portrait of George Washington behind
him in the White House's Diplomatic Reception Room, Trump sought to pin any
worries about the economy on his predecessor, Joe Biden.
"Eleven months ago, I inherited a mess, and I'm fixing it," Trump said.
"We're poised for an economic boom, the likes of which the world has never
seen."
Trump seeking to stop the slump in his approval ratings
His holiday wishes came at a crucial time as he tries to rebuild his
steadily eroding popularity. Public polling shows most U.S. adults are
frustrated with his handling of the economy as inflation picked up after his
tariffs raised prices and hiring slowed.
In 2026, Trump and his party face a referendum on their leadership as the
nation heads into the midterm elections that will decide control of the House
and the Senate.
The White House remarks were a chance for Trump to try to regain some
momentum after Republican losses in this year's elections raised questions
about the durability of his coalition. He openly leaned into the politics
despite television networks' past reluctance to broadcast presidential
addresses loaded with campaign-style rhetoric.
For example, in September 2022, networks declined to give the Biden White
House a prime-time slot for a speech the then-president gave about democracy
because it was viewed as too political.
Trump spoke at a rapid-fire clip with a tone that bordered at times on
anger. He responded to the public frustration this year over the economy by
making even bolder promises on growth next year, saying that mortgage rates
would be coming down and that he "would announce some of the most aggressive
housing reform plans in American history."
Trump brought charts with him to make the case that the economy is on an
upward trajectory. He made claims about incomes growing, inflation easing and
investment dollars pouring into the country as foreign leaders, he claimed,
have assured him that "we're the hottest country anywhere in the world," a
statement he has frequently repeated at public events.
If the argument seemed familiar, that's because it has echoes of the case
that Biden made about the U.S. economy with little success. He, too, in the
face of inflation pointed to the enviable rate of U.S. economic growth compared
to other nations.
The public sees the economy differently from Trump
The hard math internalized by the public paints a more complicated picture
of an economy that has some stability but few reasons to inspire much public
confidence.
The stock market is up, gasoline prices are down and tech companies are
placing large bets on the development of artificial intelligence.
But inflation that had been descending after spiking to a four-decade high
in 2022 under Biden has reaccelerated after Trump announced his tariffs in
April.
The consumer price index is increasing at an annual rate of 3%, up from 2.3%
in April.
The affordability squeeze is also coming from a softening job market.
Monthly job gains have averaged a paltry 17,000 since April's "Liberation Day,"
when Trump announced import taxes that he later suspended and then readjusted
several months later.
The unemployment rate has climbed from 4% in January to 4.6%.
Trump said that investment commitments for new factories will boost
manufacturing jobs and that consumer activity will improve dramatically as
people receive increased tax refunds next year.
While emphasizing the economy, he also faces challenges on other policy
fronts.
Trump's mass deportations of immigrants have proved unpopular even as he is
viewed favorably for halting crossings along the U.S. border with Mexico. The
public has generally been unmoved by his globe-trotting efforts to end
conflicts and his attacks on suspected drug boats near Venezuela.
Trump sought to blame Democrats for the likely increase in health insurance
premiums as the subsidies tied to the 2010 Affordable Care Act are expiring.
Democratic lawmakers and some Republicans have sought to address that issue,
but Trump has pushed back and suggested instead that payments should go
directly to the buyers of health insurance instead of the companies. The
president has yet to commit to a specific legislative fix.
After his speech ended and the video was no longer being broadcast, Trump
turned to his gathered aides and asked them how his address to the nation went.
The aides assured him it was great.
Trump then indicated that White House chief of staff Susie Wiles had told
him he needed to address the nation. After some back and forth, he asked Wiles
how he had done.
"I told you 20 minutes and you were 20 minutes on the dot," Wiles said.
|
|
