Trump messed up on inflation, now he’s ballooning national debt
President Trump’s intention to remove the federal gas tax is a puny attempt at helping consumers through an extended episode of high prices caused by his war on Iran. It’s actually a politically condescending gesture.
Gas prices have risen, painfully, by about $1.50 a gallon since we started gratuitously attacking Iran last February. Trump’s gas tax removal plan will ease the pain by about 18 cents a gallon. It’s a nice gesture, but as a practical matter I doubt that consumers will find it to be much relief.
It also exposes his level of incompetence on the inflation front, where his failure failure was underscored by yesterday’s Consumer Price Index report for April. Overall inflation was up at an annualized rate of 3.8%, the highest in two years, while “core” inflation, which excludes energy and food costs, was up 2.8%. That “core” figure is the same as it was in February 2025, just after Trump was inaugurated for his second term, and it’s been dancing around there ever since.
These numbers are significantly higher than the 2% inflation target that is commonly used as the measure of a stable economy, and the public is fed up. Adding to the public’s frustration is news that for the first time in three years, wages aren’t keeping up with prices.
The president, who promised to lower grocery prices “on day one” of his administration has watched inflation raise food prices month after month after month since his inauguration. This isn’t news, but remains a point to ponder as we watch Trump’s approval rating sinking to historic levels of disenchantment.
So now that Trump has been a complete flop on the inflation front, how’s he doing on another one of his boastful promises regarding the nation’s balance sheet, specifically the country’s debt?
“Awful” is the answer.
First off, it will blow a hole in the fund that pays for highway construction and repair, a likelihood that transport and construction industry interests don’t like.
Secondly, if Trump’s gas tax removal plan goes into effect, it will give consumers some barely noticeable relief even as it adds a sizable chunk of debt to the nation’s already beleaguered balance sheet. The Committee for a Responsible Federal Budget calculates that the extra debt will amount to billions each month.
Trump, according to CRFB, added $8.4 trillion to the national debt during his first term, despite his promise that he would reduce, if not altogether eliminate it. I don’t recall him making a similar promise prior to his second term, which at least spares him the ignominy of breaking the same promise twice.
John Tsitrian is a businessman and writer from the Black Hills. He was a weekly columnist for the Rapid City Journal for 20 years. His articles and commentary have also appeared in The Los Angeles Times, The Denver Post and The Omaha World-Herald. Tsitrian served in the Marines for three years (1966-69), including a 13-month tour of duty as a radioman in Vietnam. Republish with permission.
Photo: public domain, wikimedia commons
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