In a Tuesday conversation, Donald Trump Jr. and Jason Trennert talked about the current state of the American economy, particularly the disparity between official inflation figures and the real-life experiences of everyday Americans. Trennert introduced his “Common Man CPI,” an index designed to measure inflation as the average person feels. Unlike the official Consumer Price Index (CPI), which excludes food and energy, the Common Man CPI includes essential items such as food, energy, shelter, children’s clothing, insurance, and utilities. This approach, Trennert argued, provides a more accurate reflection of the financial pressures faced by ordinary citizens.

“One of the things we create is called the Common Man CPI, and the Common Man CPI only includes things people must buy,” Trennert explained. “Core CPI excludes food and energy, but I would say food and energy are pretty core for most people, right?”

This index has revealed that inflation rates for essential goods have consistently outpaced the official figures reported by the government during Biden’s administration. Specifically, the Common Man CPI has surpassed the headline number in 36 of the 41 months, highlighting a significant gap between official data and the lived experiences of many Americans.

Trennert also reintroduced the “misery index” during his conversation with Donald Trump Jr. He highlighted how this index, which combines inflation and unemployment rates, has been significantly high under Biden’s administration, affecting the average American’s quality of life. He emphasized that despite positive stock market performance, the real-life experiences of everyday Americans tell a different story.
“The misery index, which combines inflation and unemployment rates, has been significantly higher during the Biden administration. This index reflects the real-life economic struggles of everyday Americans, despite what the stock market might suggest.”

The Misery Index originated in the 1970s. It was created by economist Arthur Okun, a prominent figure in macroeconomics and a member of President Lyndon B. Johnson’s Council of Economic Advisers. The Misery Index is calculated by adding the unemployment rate to the inflation rate, providing a simple measure of economic distress that reflects the combined impact of these two critical economic factors on ordinary citizens.

The index gained prominence during the 1970s as the U.S. experienced stagflation—a period characterized by high inflation and high unemployment—making it a useful tool for illustrating the economic hardships faced by the general population during that time.

Trennert emphasized that the current inflation discrepancy has had a tangible impact on the standard of living. “It has surpassed wages by seven percent over the past three years,” he noted. “In your dad’s administration, wages surpassed the Common Man CPI. In the Biden administration, wages have undershot the Common Man CPI by about seven percent.” This means that despite stock market highs and positive economic indicators touted by the government, the average person’s purchasing power has eroded, leading to widespread dissatisfaction.

Trump Jr. echoed these sentiments, criticizing mainstream media and economists like Paul Krugman for downplaying inflation concerns. “It’s incredible. New York Times and other outlets have written many pieces saying, ‘Don’t believe your own lying eyes. Inflation’s fine.’ It doesn’t make any sense because if I’m pissed off when I go to a grocery store with my children, the son of a billionaire from Manhattan, it’s got to be crushing everyday Americans,” he remarked.

Trennert argued that the government’s reliance on deficit spending to prop up the economy is unsustainable. “The only reason why the economy is not in recession right now is because we’re spending money as if we’re in recession,” he said. “We’re running a budget deficit that’s seven percent of GDP with about a four percent unemployment rate and a meager labor participation rate. We’ve never spent this much when the unemployment rate has been below seven percent.”

This heavy spending, he warned, leaves the country vulnerable in the event of a genuine economic downturn. “If you actually did go into a recession, all the automatic stabilizers—unemployment insurance, welfare, food stamps—would explode. We’re not leaving ourselves any room whatsoever should an unfortunate event happen in the global economy,” Trennert cautioned.

Trump Jr. and Jason Trennert exposed a disconnect between official inflation statistics and the reality many Americans face. Through the Common Man CPI lens, they illustrated rising costs for essential goods and the unsustainable nature of current economic policies.

The critique of mainstream media and economic strategies further emphasized the need for a more honest and realistic assessment of the nation’s financial health.

Watch the entire WarRoom segment with Trump Jr. and Trennert:

Trennert: Common Man’s Standard Of Living Deteriorated By 7% Under Biden Admin