Trump's 'Original Sin' On The Economy Was This, Says Economist Justin Wolfers: 'It Was An Irresponsible Claim At The Time'

Core Viewpoint - Economist Justin Wolfers criticized President Trump's unrealistic promises regarding price declines, highlighting that in a healthy economy, prices typically do not fall [2] Group 1: Economic Commentary - Wolfers referred to Trump's assertion that prices would decrease as his "original sin," emphasizing that many Americans still hope for price reductions due to these promises [2] - The typical economic response to a price surge is wage growth rather than deflation, which is currently absent, leading to an "affordability crisis" [2] - Higher business costs, termed a supply shock, are contributing to current price pressures, with factors such as tariffs and limited immigrant labor availability exacerbating the situation [3] Group 2: Affordability Crisis - Moody's Analytics Chief Economist Mark Zandi warned of a "serious affordability crisis" in the U.S. economy, attributing it to Trump's tariffs and restrictive immigration policies that have increased inflation [3] - Zandi indicated that the current economic indicators suggest "even higher inflation dead-ahead," which is significantly above the Federal Reserve's target of 2% [4]