Last night, President Trump addressed the nation in a primetime speech to herald good news on the economy and to lay out a path forward in making life more affordable again.

The less than 20-minute address covered a gamut of topics but largely focused on prices and affordability. He framed the situation as fixing what Biden broke and highlighted progress to date on the pocketbook concerns of Americans.

President Trump also surprised us all with a special bonus for our military service members.

Here are 5 key takeaways from the president’s speech:

  1. Look out for the new “warrior dividend.” In honor of our nation’s 250th birthday, President Trump announced that 1.45 million service members would receive a tariff-funded bonus of $1,776. He quipped that “The checks are already on the way,” which is certain to provide military members a great gift, especially after the financial turbulence that the federal shutdown threw them into.
  2. Leftist policies shot prices up; under conservative leadership, they’re drifting back down. “Democrat politicians also sent the cost of groceries soaring, but we are solving that, too … everything else is falling rapidly. And it’s not done yet.” Take-home pay is rising to about $1,300 for the typical factory worker after plummeting by $3,000 under Biden.
  3. Job growth is where it should be: in the private sector only. “100% of all jobs created since I took office have been in the private sector … rather than government, which is the only way to make a country powerful and great.” While job growth has been dull, the modest growth is not in the public sector but across industries such as health care, hospitality, and business services. Government jobs are propped up by massive spending, which inflates the federal budget and grows deficits and debts. Instead, the president explained that investment to the tune of a record-breaking $18 trillion will drive wage increases, growth, factory openings, and far greater national security.
  4. Climate change policies set electricity costs on fire.  “Electricity costs surge 30 to 100 percent under Biden, and the typical family lost $5,000 to $10,000 in higher energy costs.” The energy dominance agenda has already driven the national average gasoline price down to under $2.50 per gallon and below $2 in some states. The president promised that within the next 12 months, they will have opened a record 1,600 new electric generating plants, which will increase electricity supply and drive prices back down.
  5. Only a whole-of-government effort will continue driving prices down. Policy changes in one agency will not be enough to bring prices down; instead, they must be made in every agency. Energy, labor, agriculture, and transportation need to deregulate their respective industries so that businesses can innovate and grow. 

Today’s positive inflation readings co-sign the president’s affordability agenda. The headline inflation rate fell to 2.7% in November (year-over-year) from 3% in September, beating expectations. Core inflation, which removes volatile food and energy price changes, also came in lower at 2.6% and was also below economists’ expectations.

When the inflation rate hit a generational high of 9.1% in June of 2022, it shocked Americans. Thankfully, prices have come down and are on a downward trajectory. Americans have been traumatized by high prices, and they are holding this administration accountable for prices not falling fast enough, as recent off-year election results and polling data suggest.

Affordability requires a two-part solution: cutting prices and raising incomes. The good news is that real (inflation-adjusted) wages are rising and purchasing power is strengthening. The tax cut package passed by conservatives and enacted next year will continue to boost take-home pay, arming Americans with the resources they need.

The job is far from done, but the administration is right to point out the progress made.