Trump Economic Chief Says Affordability Crisis Is ‘a Myth’: What Data Shows

 https://www.newsweek.com/trump-economic-chief-says-affordability-crisis-myth-what-data-shows-12623578

Kevin Hassett, the director of President Donald Trump's National Economic Council, has dismissed the country's much-discussed affordability "crisis" as a "myth," arguing that official spending data proves Americans are significantly better off under the current administration.

"The amount of consumption per household has gone up maybe around $5,000 per household," he said in an interview with Fox Business on Monday. "That's after inflation, because of the income boom, the capital spending boom, the fact that people aren't losing their jobs. All the things that have made the economy great means that 'affordability crisis'—it's a myth!"

But economists say looking at the figures in this manner neglects the economic reality for most voters in the U.S., with Mark Zandi, the chief economist at Moody's Analytics, calling affordability "a serious problem for the majority of Americans."

"After inflation, wages are falling, personal saving rates are low, and borrowing costs are on the rise," he told Newsweek. "Overall spending has held up, but only because the well-to-do are doing fine financially, as their AI-powered stock prices have lifted their wealth."

Research from Moody's in 2025 showed that the richest U.S. households represent a record portion of overall consumer spending—with the top 10 percent of earners now accounting for roughly half. Zandi added that most Americans own few if any equities and have been "locked out" of the real-estate market thanks to elevated mortgage rates.