Despite President Donald Trump's claims that 'the economy is roaring back', many US workers are finding it difficult to afford basic necessities. As reported by The Guardian, the reality on the ground is far from the rosy picture painted by the White House. The struggles of American workers are a stark reminder that the affordability crisis in the US is far from over.
The Guardian spoke to workers who shared their struggles with the cost of living, highlighting the disconnect between the administration's claims and the harsh realities faced by many Americans. Dawn Levie, a 61-year-old postal service worker in Paulden, Arizona, has seen her earnings decline over the past year due to cuts to her hours, making it harder for her to afford basic necessities like groceries and utility bills.
Levie's story is not an isolated one. Many workers are struggling to make ends meet, with rising inflation and stagnant wages making it difficult for them to keep up with the cost of living. Bryan Williams, a 63-year-old home-care worker in Madison, Wisconsin, earns $17.65 an hour and is living paycheck to paycheck. 'I know things are worse, because I'm living it and I feel it every day,' Williams said.
The Rising Cost of Living
Food prices were 2.9% higher in January compared to the year before and are predicted to increase by 3.1% over the next year. Utility prices in the US also increased by more than 6% in January 2026 compared to a year prior. These rising costs are having a significant impact on American families, with many taking on debt to make ends meet.
Total household debt in the fourth quarter of 2025 reached $18.8tn, up by 4% since the beginning of the year. Delinquency for all types of debt rose 3.26% in the fourth quarter of 2025 compared to 1.7% in the same period of 2024. Credit card debt in the US by the end of 2025 hit a record $1.28tn.
Meanwhile, wages have stagnated for many workers. The 10% lowest wage earners, receiving on average $14.56 an hour, saw their wages decline by 0.3% when adjusted for inflation in 2025. The federal minimum wage of $7.25 an hour has remained unchanged since 2009 – the longest period without an increase since the federal minimum wage was enacted.
The Impact of Tariffs and Cuts to Social Programs
The Trump administration's tariffs have led to higher prices, with seven out of 10 Americans saying that tariffs have resulted in higher prices. US families have paid more than $1,700 in estimated costs due to the Trump administration's tariffs from February 2025 to January 2026.
In addition to the tariffs, the administration's cuts to social programs have further exacerbated the affordability crisis. The One Big Beautiful Bill Act, passed last summer, included massive cuts to Medicaid, Medicare, and the Supplemental Nutrition Assistance Program (Snap). The White House is also allowing Affordable Care Act subsidies to expire, which will raise health insurance premiums for 22 million Americans by an estimated 114%.
Trump has also sought to cut pay for millions of low-wage workers. Last year, the president rescinded an executive order that raised the minimum wage for federal contractors to $15 an hour and gave annual raises to keep in pace with inflation, impacting more than 300,000 workers.
Workers' Stories and Expert Analysis
Crystal Franklin, a 54-year-old US passport specialist and mother of three, has started taking the bus to work due to rising gas prices and is being more frugal at the grocery store. 'We're not able to do what we used to be able to do because the cost of living has gone up extremely high,' Franklin said.
Vernice Thompson, a 63-year-old retail worker in Williamsburg, Virginia, said that even with social security benefits, housing takes up half her income. 'Groceries have gone up. The prices of a lot of the foods that I like have gone up,' Thompson said.
Experts agree that the affordability crisis in the US is a pressing issue. 'If people aren't being paid a cost-of-living increase, or just the bare minimum of a cost of living increase, it's hard to keep up,' said Franklin.
The White House Response
A spokesperson for the White House, Kush Desai, disputed the economic trajectory under the Trump administration. 'America's economic trajectory under President Trump has been solid,' Desai said. 'This week's CPI report showed inflation continues to cool while the Administration's tax cut, tariff, and deregulatory agenda continues to drive robust real wage and investment growth.'
However, for many American workers, the reality on the ground tells a different story. As Williams said, 'I don't believe anything Trump says because everything he promised us he was going to do did not happen.' The struggles of American workers are a stark reminder that the affordability crisis in the US is far from over, and it will take more than just rhetoric to address the pressing issues facing the country.
