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Valuetainment

"Prices Will NEVER Go Down" - Trump’s Affordability Promise COLLIDES With Cost-of-Living NIGHTMARE

07 Jan 2026

Transcription

Chapter 1: What affordability strategies is the White House implementing?

0.031 - 22.241 Patrick Bet-David

White House laser-focused on affordability as Trump softens tariff strategy. Okay, so there's two stories. Like, well, you know, affordability is just a Democrat hoax. It's not a real thing. No one's really dealing with that. It's just a bunch of BS. But behind closed doors, apparently, guys, we've got to get this affordability thing. scored away as we're going through this next phase.

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22.262 - 39.099 Patrick Bet-David

So the Trump administration is ramping down tariffs for even more goods as the White House zeroes in on its messaging around affordability. The White House announces Wednesday that tariffs slated to kick in Thursday as furniture, kitchen cabinets, and vanities would be postponed for another year.

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39.5 - 50.013 Patrick Bet-David

This indicates that on some level the White House understands that President Trump's tariffs are driving up consumer prices and that Trump and the Republican Party are incurring substantial political damage from higher prices.

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50.093 - 64.21 Patrick Bet-David

Michael Strains said the White House slapped a 25% tariff on furniture, kitchen cabinets, and vanities, and October tariffs on furniture were slated to increase to 30% in January, and tariffs on the cabinets and vanities were set to increase to 50%.

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64.19 - 84.961 Jeff Snider

but they're trying to figure out something going on here with affordability time your thoughts on the story well first of all uh... we were correct we talked about this and we said that the tariffs and we said at the beginning of the year they would be tactics not taxes and guess what All the economists come out so surprised. Oh, wow. Well, you know, it really hasn't gone up.

85.001 - 103.221 Jeff Snider

It hasn't been as inflationary as we thought. Even the Fed, Jerome Powell, you know, the short timer who's about to lose his job, has said that. And what's happening this week is the president is talking more about affordability to kind of take the messaging back from the Democrats who keep saying, oh, it's inflationary, inflationary.

103.562 - 117.499 Jeff Snider

If you look at one of the things that was happening this week, it was a bunch of pre-made construction stuff. These are things that, you know, average Americans buy every week, not vanities, kitchen cabinets, you know, higher end furniture.

Chapter 2: How have tariffs impacted consumer prices?

117.699 - 140.097 Jeff Snider

Come on. Those aren't the things that people are buying every week. And that's not what tariffs are going to cause inflationary. As a matter of fact, he moved on some agricultural projects. tariffs that were in Italy, and it took the tariffs down to 1.2% on certain Italian pastas. So the pastas that are coming in, it was less than one-seventh of our sales tax.

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140.457 - 142.662 Jeff Snider

So what's happening right now, point one.

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143.047 - 161.95 Jeff Snider

The president hears these messages Democrats are trying to push on affordability, so now he's fighting back saying, hey, it wasn't inflationary in the first place, and I'll tell you what, let me suspend this tariff over here, this tariff here that was on kitchen vanities, cabinets, and things that you would use for remodels, and Americans aren't really doing that right now, right?

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161.97 - 178.25 Jeff Snider

There's not a lot of remodeling going on. You see the quarterly reports from Home Depot and Lowe's, but energy is down, heating oil is down for the winter, and also... He just did like what he did on the imported Italian pasta, make it like a one percent tariff coming over there.

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178.571 - 197.276 Jeff Snider

So he's getting the joke that he can't just say to the microphone, oh, affordability is a headline issue that's being spun by the Democrats. No, there's some reality to it because the prices haven't come back down from Biden inflation. And so now the White House and the president are out there speaking to it to counter the message of the Democrats.

197.336 - 200.661 Jeff Snider

And yes, certain things like Italian pastas came down a little bit.

201.012 - 202.276 Patrick Bet-David

Jeff, your thoughts on this?

202.376 - 204.002 Unknown

Yeah, this is not a messaging thing.

Chapter 3: What does the Trump administration's tariff strategy reveal about political pressures?

205.306 - 209.7 Unknown

The fact that they try to treat it as a messaging problem shows that they're still kind of out to lunch on it.

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209.72 - 210.723 Patrick Bet-David

You're saying it's a real thing.

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210.944 - 233.699 Unknown

It is absolutely a real thing. The original problem here that Republicans had specifically is they came in last year or the year before. Sorry, it's 2025 or 2026 now. They came in the year before and said, we're going to bring prices down. Well, in economics, prices don't go down. That was a mistake to begin with. When prices went up back in 21 and 22, that was a permanent change.

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233.719 - 252.824 Unknown

You can't go backwards. Every supply shock in history, prices go up in a step fashion, and then they level off where they are at a new step fashion or the new equilibrium, and they stay there. So what Republicans should have said is, you want to blame Biden for that? Fine. Biden made you poorer. Now we're going to try to fix it. Not by getting prices to go down, because they will not go down.

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252.844 - 260.314 Unknown

They should have been clear on that. Prices will never go down again. We are never going to see 2019 prices again. So what we're going to try to do is...

260.294 - 283.876 Unknown

is our absolute best to make sure the jobs market is as strong and as resilient as matching the rhetoric coming from all these different economists in the Federal Reserve, so that what happens is, what should have happened if we had a strong economy, that you have prices that went up in 21 and 22, back then, five years ago, and then incomes rise to, first of all, meet prices and then exceed them.

284.136 - 285.238 Unknown

What happens first?

286.18 - 291.506 Patrick Bet-David

What happens first? Cost of goods goes up first, then income rises?

291.887 - 293.568 Unknown

What is the typical pattern?

Chapter 4: Why do economists disagree on the inflation impact of tariffs?

294.009 - 311.99 Unknown

In this case, because prices were forced higher by government action, it was a non-economic... Income has to be forced to increase. Income should naturally go up. If there was an actual recovery from the pandemic and the lockdowns, then incomes would naturally rise over enough time that it would equalize with the prices from 21 and 22, and then exceed them.

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312.35 - 330.411 Unknown

So even though the cost of a car is now $50,000 instead of $30,000... you have more than enough income to pay for it. And so we all get used to the new higher prices and it doesn't become a major problem. But is that happening? No, that's the problem. What really happened was prices went up massively in 21 and 22 and incomes never caught up.

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330.812 - 345.09 Unknown

This is what people are talking about when they talk about inflation and affordability. It's not about the price of a dryer or something that's gone up in the last year. It's the price of everything that went up five years ago and incomes never went up enough For people to call back.

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345.13 - 347.676 Patrick Bet-David

Whose fault is that, too? How do you address it?

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347.816 - 361.685 Unknown

Whose fault is that? It's the government's fault. They created the pandemic and the lockdowns. And then because of the pandemic. Under Biden, when they did the pandemic and the lockdown. You can't forget it was also Trump. It was. The spending was on both sides. Spending was on both sides. But the lockdown was on both sides. Yeah, it was both sides.

361.705 - 372.446 Unknown

I mean, you got to blame both sides for this part. On lockdown? Sure. And spending. And in the printing. Who locked down on Trump's side? 2020? Two weeks to flatten the curve? That was in Trump's watch.

372.466 - 377.496 Patrick Bet-David

Right. The lockdown. But it wasn't a... You're not talking about the lockdown that happened under Biden?

377.556 - 396.775 Unknown

No, the repeated... The repeated emergency pandemic measures, that was absolutely devastating. That's where really the price changes came from. Because what happened is you had the economy starting to come back from the lockdowns. So there's more demand that was rising. But at the same time, supply, the supply side of the economy was hindered by all those emergency measures.

396.795 - 414.278 Unknown

So the government printed more money. Not money printing. Not money printing. What happened was it's called a supply shock, which is an imbalance between demand and supply. So you have demand and supply that completely plummeted during the lockdowns. When they came back, demand started to come back, but supply couldn't. It was restrained. People were home. They couldn't work.

Chapter 5: How does the Biden era inflation affect the economy?

514.576 - 537.014 Jeff Snider

And you can argue whether it started as Trump, but you can certainly look at the charts and it went nuts under Biden. And there's a lot of core products that probably aren't going to be able to come down. Energy is one where the president can help it get down. I mean, look what Biden did. Biden depleted the SPR, Strategic Petroleum Reserve, to artificially drop gasoline prices.

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537.394 - 542.582 Unknown

Which never happened. They used the SPR and it didn't actually get oil prices to go down.

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542.562 - 545.845 Jeff Snider

Correct. But that's what he said he was doing. Instead, it just depleted it.

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546.366 - 550.83 Unknown

But again, that's all just messaging. We need to do something to appear to be doing something.

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550.93 - 570.59 Jeff Snider

Correct. Well, he didn't do anything. What Trump is doing something, and you can look at the price of gas outside of the blue states where they have the artificial cap taxes. California's got $1.90 cap tax on the true price of gas. So you take a look at what you'd pay, say, in Texas, Alabama, even New Jersey, and then put $1.90 on it, the California cap tax.

570.61 - 593.705 Jeff Snider

And that's why it's $5 in California and $2.99 in other states. So the president can push down on energy, but this president needs to talk about affordability to blunt what's happening with the Democrats. That's the messaging thing. What you're saying, solution, I agree the solution isn't messaging, but one year you're not going to have a 30% increase in American income.

594.987 - 600.677 Jeff Snider

By the way, we do see that around the world. It's hyperinflation. Right. If everybody's income goes up, then all the companies.

600.737 - 615.869 Unknown

That's why it happens over time. What I'm arguing for is that from the president and political perspective is that what they should do is be honest. They should just be honest and say, look, we're not going to get prices to go back. That's not how economics works. So that's that's that's we're not even going to we're not even going to try. That's not our goal here.

616.07 - 617.693 Unknown

Our goal here is to demand, though.

Chapter 6: What is the relationship between wage growth and affordability?

821.761 - 841.046 Patrick Bet-David

Small banks. That's exactly right, small banks, just banks, total banks in America. If you go to – yeah, while you're doing that, I'll look up the reports. But the question becomes if prices – Like you said, you know, flat screen TV is one from $10,000. You can buy a TV right now for $400 or $500. I can't believe how cheap it is right now to buy a... Yeah, so what does it say?

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841.086 - 864.793 Patrick Bet-David

It says 4,000 commercial banks in the U.S., Okay, so let's just say around 3917, according to FDIC, the number of banks peaked in the 20th century would estimate typically around 29,400, 30,400. That's before the Great Depression. But even at 1980s, we had 14,000 banks.

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864.773 - 887.292 Patrick Bet-David

To go from 14,000 banks to 39,000, 17,000, no longer lending money to small business owners to start because the underwriting becomes tighter. They want the bigger deals. They want the bigger business. I can see this happening. I can see this happening. But the other part is as well where the incentive comes about. Let's develop cheaper cars, okay, more cost-effective cars.

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887.853 - 904.523 Patrick Bet-David

Let's develop housing that's going to be more cost-effective. How do you do that? Innovation, this is a time where innovation can really lead. But go to that chart right there, Rob. Go to that chart right there. Look at that. I mean, that tells a whole story right there. Consolidation. Look at that. That's not good.

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905.084 - 907.148 Jeff Snider

Yeah, it wasn't a contraction. It was a roll-up.

907.468 - 925.24 Patrick Bet-David

Yeah, it was a roll-up. That's exactly what it was. It's all mergers. It's all mergers. And the consumer wins there. Look how sudden it is from 1980. That's the euro-dollar system. Why is that sudden from 1980, though? If you look at the number, it's increasing 50, 60, 70, 80s, and then it drops.

925.22 - 944.666 Unknown

Yeah, the reason why is because of international consolidation. You have international competition. So we internationalized the monetary system starting in the 50s, 60s, and 70s, and by the 1980s it became hyper-international, which meant that you don't have a small regional bank in a local U.S. location competing with other small regional banks in that same location.

945.067 - 962.861 Unknown

Now you have large-scale banks in Switzerland and Japan and Asia competing with the large banks on Wall Street. And those are the only banks that suck up all the money and oxygen. And it's a big bank. What do you do? You buy all the smaller ones. It's the cheapest way to continue to grow and scale.

963.002 - 968.358 Patrick Bet-David

The average person watching this, what can they do? What can the average person do?

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