By Kevin D. Williamson
Monday, December 15, 2025
If you want to know why Donald Trump and his three-legged
psychedelic pinball machine of an administration are on the wrong side of
Americans when it comes to economic performance, consider this interesting
fact: Grocery
inflation is more than twice as bad right now as it was in the closing days of
Joe Biden’s presidency, when Americans turned on the incumbent president
and his party before spurning his chosen successor while complaining—not
without cause—that Democratic policies were making their grocery bills worse.
Now it is Republican policies that are making grocery bills worse, in no small
part because they are, at a fundamental economic level, nearly
indistinguishable from the Democratic policies that had Americans so riled up
in 2024.
Annualized inflation in what the Bureau of Labor
Statistics calls “food at home” (meaning groceries, a word our senescent
president seems to believe he introduced into the political conversation) was
at 2.7 percent in September of 2025, the most recent month for which there is
public data—by comparison, the average annualized monthly measure of grocery
inflation in 2024 was only 1.2 percent throughout 2024. (Because inflation is a
compounding phenomenon, total grocery inflation in 2024 was 1.8 percent even
though the average monthly increase was only 1.2 percent. If grocery inflation
is found to have continued at its most recent rate through year-end, then total
2025 grocery inflation would amount to about 4.2 percent, keeping us well
within more-than-twice-as-bad territory.) Total food inflation—meaning
groceries plus food consumed outside the home—is even worse, running at 3.1
percent in the most recent survey, a little ahead of overall inflation.
This is a difficult thing to avoid noticing. I am sure
that I am not the only one who has noted that my regular trips to Kroger (four
hungry boys at home!) have jumped from around $140 per visit to around $200 per
visit. My own household consumption puts us at a particularly unhappy point on
the grocery-inflation distribution, inasmuch as we buy a considerable quantity
of meat, milk, eggs, and the like—food items that have seen much more severe
inflation than the overall model grocery cart.
What’s that look like?
When Donald Trump first took office in January of 2017,
sirloin steak ran $7.79 a pound but today costs $14.14. Over the same period,
ground beef went from $3.55/pound to $6.33/pound; eggs more than doubled in
price from $1.60/dozen to $3.49/dozen—and that is down from a spike to $6.23 in
March; a gallon of milk went from $3.32 to $4.13; coffee (take it from a father
of four, three still in diapers) has zoomed from $4.47/pound to $9.14/pound.
Ground chuck (you’re making chili this time of year, right?) has nearly
doubled, and so has bacon. Chicken breasts are up 28 percent. The exceptions
are few and far between: Prices are bananas—except for actual bananas, which
have appreciated only one thin dime per pound.
Inflation per se is, as Milton Friedman insisted, a
monetary phenomenon. But in the more colloquial sense of rising general prices,
inflation can have several different causes—because that kind of price increase
is the result of a change in the relationship between the amount of money
available to chase goods and the amount of goods available to be chased,
inflation in the common sense can be caused by both monetary and fiscal policy,
by artificially low interest rates, and/or by changes in the availability of
goods. Because Trump’s economic team consists of some of the smartest people in
the business demeaning themselves to curry favor with the dumbest man ever to
occupy the presidency—whose two terms in office were separated by an
administration of off-the-leash progressives manipulating an elderly
incompetent who was both dumb and mean at the height of his abilities but who
was during his presidency cognitively indistinguishable from one of those
reasonably priced bananas—Americans have been treated to a whole brain-damaged
theme park of pro-inflation policies. The economy continues to be flooded with
cheap money thanks to too much spending and too much debt (Treasury calculates
that the U.S.
government added about $72.7 billion in new debt in the two-week period
ending on December 10) without adequate tax revenue to pay for the outlays.
And the Trump administration is trying to oust the Fed chairman in order to
pressure the supposedly independent monetary authority into driving interest
rates down—which is exactly the opposite of what you’d want the Fed to do if
you wanted prices to go down: Cheap credit is another way of saying cheap
money. On the supply side, the administration has mucked up every possible
thing with its idiotic (and unconstitutional) tariff policies, which have interrupted
trade and broken supply chains in order to secure the administration’s goal of
... destroying
thousands of U.S.-based manufacturing jobs, apparently. So, lots of money
dumped into the demand side, and a supply side hamstrung by the freshest
economic thinking of the 15th century.
Don’t worry—it gets worse.
As
Sen. Mark Kelly pithily put it in another context: “You can’t put that s—t
back in the donkey.”
Let’s spend a minute with our old friend the
efficient-market hypothesis (EMH). EMH is one of those concepts with a name
that sometimes leads people astray: EMH doesn’t hold that markets always do
things in a way that is efficient in the ordinary sense of the word (low
cost, low waste, etc.) or that markets will always produce the most desirable
outcomes from an efficiency point of view or anything like that: Efficient
here refers to information, and the efficient-market hypothesis is the idea
that the current price of an asset reflects all of the available relevant
information. That is not the same thing as all the possible information.
EMH is most useful as a forward-looking proposition: For example, if a law is
going to come into effect that hurts the prospects of a company’s core
business, EMH holds that this will be reflected in share prices today rather
than at some point in the future when the costs are actually incurred. EMH is
not limited to documentable facts—market efficiency in that sense incorporates
expectations as well, with the assumption that conflicting expectations and
forecasts will interact in such a way that both are reflected in asset prices:
E.g., if 92 percent of investors expect that x will happen and 8 percent
expect that not-x will happen, then asset prices related to x should
reflect both sets of expectations in some proportion.
The same kind of thinking about future developments
applies to phenomena well beyond the areas where the formal application of EMH
is appropriate. And this is where I worry even more than I usually do about
Sen. Kelly’s evacuated donkey. Setting aside the nontrivial possibility that
Donald Trump will attempt for a second time to stage a coup d’état as
his allotted time in office comes to an end, it is reasonable to think of the
post-Trump era as within sight of where we are. (Bear in mind that many
unfortunate people drown within sight of the shoreline.) The news about that is
not all good: It seems clear to me at this point that Trump has succeeded in
remaking the debased thing we still call “the Republican Party” in his own
image in accord with his own policy preferences—which, on fiscal and trade
matters, means a disastrous combination of profligacy and self-injury. If
equity investors, importers, exporters, supply-chain managers, bond buyers,
central bankers abroad, et al. come to believe, as there is good reason to
believe, that the Republican Party is today at least as committed to
fiscal incontinence as the Democratic Party, then that is going to have effects
on everything from the interest
the U.S. government has to pay on its debt to private business decisions
about how and whether to serve the U.S. market at all, where to invest
(especially in physical capital) and what to invest in, etc. Much of that will
keep upward pressure on U.S. prices, though some of it (higher interest rates)
should put downward pressure on prices. As my friend David Bahnsen sometimes
points out, U.S. government borrowing rates are not that high right now, even
if they are a little bit higher than in recent history: Treasury
yields were roughly twice as high in the early 1990s as they are
today (and damn near four times as high in the early 1980s), which means
that there is a lot of room for interest rates to rise and remain under the
ceiling of historical averages.
It is good that rates have not gone up that much—yet. It
will be very, very bad if they do. In
FY 2024, the U.S. government was obliged to spend just shy of $900 billion on
interest payments, or about 13 percent of all federal spending and 18 percent
of all federal revenue, on the debt it already was laboring under at that
time—and the debt keeps growing.
If you think we have wandered far from our original point
about inflation, we haven’t. Deficits are by nature stimulative—heavy public
debt is common a driver of higher consumer prices.
With the usual caveats about the habit of thinking
superstitiously about presidents and economic performance (COVID was the most
important economic event of the past decade, and neither Donald Trump nor Joe
Biden was responsible for it), Donald Trump would very much like for us to
think of this as the Age of Trump, so, let’s do him the courtesy of pretending
that it is possible to take him seriously and look at how things have changed
since he was first elected to the presidency in 2016.
New car prices averaged about $35,000 on Election Day
2016; today,
the average new car costs almost $50,000. Trump’s preferred economic
policies—now shared by most influential Republicans—would tend to press car
prices higher in two ways: by engaging in protectionism for domestic producers,
insulating them to some degree from price pressure from less expensive imports,
and by pressing for artificially low interest rates, which have the same effect
in the car industry as they do in housing and college tuition: allowing overall
sales prices to rise as consumers take on more debt in response to debt
subsidies. Kelley Blue Book finds that the share of vehicles
selling for prices in excess of $80,000 is at an unprecedented level.
Rising car prices, to be clear, are a long-term phenomenon that precedes
COVID-era disruptions.
Likewise, housing inflation has been a real problem for a
generation. (It is a real problem if you want to buy a house; it is a real
boon if you already own one.) The housing index is up about 45
percent today over where it was when Trump took office in 2017. Again, it
is a long-term trend—but have a gander at that price chart and see how it has
grown steeper in recent years—again, a phenomenon that is not explained by
COVID or some other similarly extraordinary development. Housing prices are
high in part because U.S. policymakers spent decades treating rising home
prices as though these were an unmixed economic benefit with no tradeoffs or
downsides—no surprise, given that the richer and older people who own houses
tend to vote more reliably than the poorer and younger people who are
struggling to buy their first home. The federal government has worked hard to
keep mortgages cheap, and local authorities have done their inflationary part
by keeping new housing artificially scarce. Hence, lots of housing inflation.
You know the old joke about the guy who hits himself in the head with a hammer
because it feels so good when he stops? We should stop intentionally pushing
housing prices higher.
Gasoline prices are up 70 cents a gallon over where they
were when Trump was sworn in in 2017 and unchanged from where they were when
American voters idiotically decided that they could take Trump’s word for it
when it came to lowering consumer prices. So, no big wins there, either.
Americans’ concerns about affordability are the result of
a “con job,” Trump insists. He is kinda-sorta telling the truth without meaning
to. There was a con job. Trump was the con artist, and his voters—numerous
enough to put him back in the White House—were the marks. In reality, Donald
Trump and Joe Biden have a lot in common when it comes to basic economic
policies: tariffs and special-interest protectionism, too much spending, too
much debt, too much political cowardice, supine congressional enablers all too
happy to let the president take the lead and catch the flak. The result is a
bipartisan consonance of destructive and generally inflationary policies.
And we all get to pay for that.
Words About Words
Slate, arguably the worst-edited publication in
these United States, suggests that the moon “may
be the literal key to human destiny.” A literal key is a literal
object that you stick in a literal lock to literally unlock it.
“Key” used in the way Slate is using it is never literal, always
metaphorical.
And Furthermore
“What
Happens if Obamacare Subsidies Expire?” asks the New York Times.
Happy to help out here: What happens is that some financial obligations will be
transferred from the people who are not receiving those insurance benefits to
the people who are receiving those insurance benefits. That’s how subsidies
work.
And Furtherermore
If a New York Times correspondent wrote as
credulously about, say, biblical literalism as
New York Times writers do about superstitious nonsense such as feng shui
or modish dietary and fitness pseudoscience, he’d be laughed out of the room.
He’d probably be fired. But bring on the silly Eastern pop-mysticism.
The Times writes that feng shui “focuses on energetic flow through a
space,” heedless of the fact that the energy in question does not flow through
space because the energy in question does not exist. It is like the
“innate intelligence” or “vital force” of chiropractic–it is a made-up thing.
So do get a load of this “neuroaesthetics”
business, which should, the Times tells us, “gear the compass of design
towards this idea of empathetic, responsive environments that make us feel like
our best selves.” I suppose I shouldn’t bother pointing out that an
environment, not being a sentient being, cannot be empathetic. It is
interesting to me that a newspaper that is so profoundly editorially hostile
toward the religion upon which the civilization that produced the New York
Times is based remains so gullible when it comes to New Age goo.
Ship of Theseus, American-Style
In 2020 the Navy had a simple plan to
build its next fleet of small warships, the Constellation class: take a
European design and build it in America. But the Navy’s constant changes
complicated the project. The shipbuilders and supply chain couldn’t keep up. By
2025, the Navy had overhauled 85 percent of the original design—and it still
wasn’t final.
As the Times tells the story, the Navy requested
some 4,000 specific changes, spent about $3.5 billion, and produced a grand
total of 0.00 ships.
I thought about the famous Ship of Theseus thought
experiment: How many design changes can you request before the design isn’t the
design?
In Closing
The actor Peter Greene has passed away at the relatively
young age of 60. It may border on speaking ill of the dead, but Greene had a
particular gift: He was naturally skeezy-looking, skeezy-seeming, just
generally skeezy. He made an impression in a relatively minor role as the fence
Redfoot in The Usual Suspects, when, according to legend, he improvised
by flicking a lit cigarette into Stephen Baldwin’s face. He lent his skeezy
presence to the opening
scene of Justified, in my view the finest Western in television
history, as drug trafficker eating crab cakes in a Miami rooftop restaurant
while simultaneously engaged in a classic high-noon standoff with a U.S.
marshal. But he surely will be best remembered as the sadistic Zed in Pulp
Fiction—“mister hillbilly rapist” in the words of one vengeful victim.
Something about the guy’s face just made him fit those roles. And it takes all
kinds of faces: Steve Buscemi (who also had a tiny but memorable role in Pulp
Fiction) isn’t competing for parts with Brad Pitt. I don’t know anything
about his personality or his life, but I knew his face, and I knew what to
expect from it. A life in Hollywood isn’t necessarily glamorous—some guys just
have to work for a living, and Peter Greene seems to have been one of those.
But the work was good—and that is not the worst eulogy a working actor can
receive.
The architect Frank Gehry also has passed away, at the
age of 96. I am not an architecture critic, but I did live in a Gehry-designed
building in Manhattan for some years, so I am intimately familiar with at least
one piece of his work. It was a real pleasure to see my building from afar and
to come home to it after a trip, or even after a long day. Pulling into the
porte-cochère in a taxi made you feel like you were living in a movie. It was a
special place, and I’m sure it still is. Naturally, the ceilings in the hallway
leaked from the first years it was open, presumably from plumbing problems or
condensation, it being unlikely that we were seeing rain coming through on the
27th floor of a 76-floor building.
Beautiful but high-maintenance–a familiar story if not
quite a universal one.
Funny story about that neighborhood: There was a Denny’s
nearby, on the ground floor of a different fancy building, whose residents had
fought like hell to keep the restaurant from opening and insisting that a
Denny’s was out of character for the neighborhood. (It wasn’t—Pace University
was nearby.) Denny’s finally opened and cheekily responded by adding a special
plate to its menu, the “Grand Cru Slam,” which was the same thing as a regular
Denny’s “Grand Slam” except that it cost $300 and came with a bottle of Dom
Pérignon. And, yes, people did order it. The Denny’s didn’t survive, though.
I’d say that New York isn’t what it used to be, but
people have been saying that since there were working farms just north of 42nd
Street. New York is what it used to be—that is part of its charm, and part of
its problem.