In a prime-time address to the nation last night, December 17, President Donald Trump made a sales pitch to the American people. While touting his 2025 achievements and making big promises for the future, Trump’s embrace of PT Barnum politics was on full display as he weaved between topics to cast forth a vision that practically dared his critics to devote considerable airtime to his every proclamation. And like Father Christmas, he had a list of wins and grievances that will have some in DC celebrating the season and others staring sadly at their lonely lump of coal.
Leaning Into Affordability
While children often have visions of sugarplums dancing in their heads at this time of year, for the more seasoned citizen, dreams are often filled with visions of credit card bills. And it seems the president has learned a lesson from one of this year’s big winners: New York City Mayor-elect Zohran Mamdani.
The Big Apple politico cruised to an overwhelming victory in November, trumpeting the “affordability crisis” facing his constituents. It was a powerful message, one that Trump and his fellow Republicans have – perhaps reluctantly – embraced. The Wednesday night speech lasted around 17 minutes but covered a huge range of issues that largely dealt with how costs were coming down and why there is a bright economic future on the horizon.
Notably, the phrase “affordability crisis” has been in near-constant use across the pond in the UK over the last several years. And while it’s true that the cost of living has become a sheer cliff face for many Brits, its use as a political cudgel has been even more daunting. Ignoring such a savvy and easily understandable voter soundbite has proven to be electoral suicide (just look at the Tory Party wipeout in 2024), but leaning into it pays dividends.
A significant portion of Trump’s address was devoted to costs and cash; if he can maintain his focus on the crucial economic issues, it can only benefit him during the 2026 midterms. So, what were the details, and who ended up on Santa’s list?
Trump’s Nice List
It wouldn’t be a Trump speech without a couple of handy new announcements. Topping the list is likely the Warrior Dividend. In celebration of the upcoming 250th Anniversary of the United States, military personnel (grades zero to six) will receive a one-time check for $1,776. Landing right before Christmas, this will be a welcome addition to military families.
Trump discussed the price of goods, highlighting the reductions in turkey, eggs, and other staples. He veered into drug prices, stressing that a whole host of commonly used pharmaceuticals either already have dropped in price or will soon do so. He also teased that his administration is looking to bring down the cost of mortgage payments by an annual $3,000.
But it seems that the commander-in-chief has taken note of his critics discussing prices and affordability. Rather than stating that the American people are all doing well fiscally, and to ignore their own lying eyes – as he came perilously close to doing in a recent trip to Pennsylvania – Trump acknowledged that his ambitious plans for the economy are a work in progress. “It’s not done yet, but boy are we making progress. Nobody can believe what’s going on,” Trump said.
And the Naughty List?
As is commonplace for a Trump speech, it was rife with swipes at his predecessor and opposition in Congress. He railed at former President Joe Biden over inflation, insisting that the current problem with affordability can be directly tied to his administration. And while news pundits were quick to point out that when Trump returned to office, inflation was around 3%, and that 11 months later, it is still roughly 3%, this critique misses the mark. Inflation is cumulative. It hit 9% under Biden, and it hasn’t gone away. The current 3% rate is on top of all that came before, so the prices went up, and they stayed up; now they are still rising but at a lower rate. He said of the “Democrat inflation disaster” that it “robbed millions of Americans of home ownership and indeed the American dream.”
For congressional Democrats, there was criticism of the “Unaffordable Care Act," with the president blaming his opposition party for high premiums and a dysfunctional system. Notably, last night, the House GOP passed an alternative bill to extend Obamacare. It has little chance of success in the Senate, but it at least outlines an alternative to the fast-approaching sunsetting of subsidies that expire on December 31.
Back to the Future
Beyond the current state of play, Trump talked about what’s coming down the pipeline in 2026. He said:
“Next year, you will also see the results of the largest tax cuts in American history that were really accomplished through our great Big, Beautiful Bill, perhaps the most sweeping legislation ever passed in Congress. We wrapped 12 different bills up into one beautiful bill. That includes no tax on tips, no tax on overtime, and no tax on Social Security for our great seniors. Under these cuts, many families will be saving between $11,000 and $20,000 a year, and next spring is projected to be the largest tax refund season of all time.”
And this might have been the most significant aspect of his primetime address. The One Big Beautiful Bill Act put in place a striking series of tax revisions that will impact the entire economy, and not just the billionaires, as claimed by his opponents in Congress. Estimates from the US Treasury suggest an average saving of between $1,000 and $2,000 per household, on top of the rebates due for this year’s filing season.
Trump stressed that “In the end, government either serves the productive, patriotic, hardworking American citizen, or it serves those who break the laws, cheat the system, and seek power and profit at the expense of our nation.” It’s a strong message that will resonate with his base – and possibly those beyond his usual supporters. After all, blue-collar workers who have traditionally been the backbone of Democratic support have suffered under the weight of the last few years of rocketing inflation and anaemic wage growth. If Trump can deliver even some of his ambitious agenda, it should be a very happy New Year for them, too.
