If we have an affordability crisis, why are people spending so much money?: Former Trump advisor

Economic Growth and Investment - The economy has been growing at a rate of 4% for the last seven to eight months, indicating strong growth and investment capital influx into the United States [3] - The Atlanta Fed predicts a third-quarter growth of 3.8%, which is only slightly lower than previous expectations, demonstrating resilience despite economic challenges [6] - There are currently 7 million job openings in the country, suggesting a strong demand for skilled labor [4] Inflation and Consumer Spending - Inflation has decreased significantly compared to previous levels under the Biden administration, with import numbers showing flat inflation [7] - Consumer spending remains robust, with no signs of weakening, as evidenced by corporate reports indicating strong business performance [8][9] Labor Market Dynamics - The labor market is characterized by high turnover, with 2.5 million people leaving jobs each month, but more individuals are being hired, reflecting a dynamic economy [10] - There is a noted skills gap, where many college graduates may not possess the skills that employers are seeking, impacting employment opportunities [5] Housing Market and Construction - The construction sector has seen flat growth over the past three years, but there is optimism that construction numbers will improve in the coming year [15] - Apartment prices have started to decline by 1% annually due to increased supply, indicating a potential for similar trends in the single-family home market [17][18] Tariffs and Economic Policy - Tariffs have generated revenue for the government, but there are concerns about their long-term impact on prices and voter sentiment ahead of the 2026 midterms [19][21] - There is a proposal to cut payroll taxes as a more effective way to support the middle class, incentivizing both hiring and workforce participation [24][25]