Trump's Economic Promises: Can Executive Orders Lower Prices?

As President Trump takes office, he's wasted no time in promising to lower prices for American consumers. But can his executive orders really deliver on this promise? CBS host Margaret Brennan recently grilled Vice President JD Vance on this very topic, and the answers were revealing.

First, let's examine the executive orders Trump has signed so far. On January 20, he signed a memorandum titled "Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis." The order aims to lower prices for housing, healthcare, home appliances, and energy, among other areas. It also seeks to create employment opportunities and draw discouraged workers back into the labor force.

Sounds great, right? But can these executive orders actually lower prices? The answer is not so simple.

For instance, Trump's order to lower housing prices and expand housing supply could face significant challenges. Zoning laws and environmental regulations at the state and local levels may limit the federal government's ability to influence housing prices. Additionally, addressing the housing shortage requires significant investment in infrastructure and construction, which may not be feasible through executive orders alone.

Similarly, Trump's order to eliminate unnecessary administrative expenses and rent-seeking practices in healthcare may face resistance from powerful interest groups. Moreover, the order does not address the underlying issues driving healthcare costs, such as the high cost of pharmaceuticals and the lack of competition among healthcare providers.

Trump's order to eliminate counterproductive requirements that raise the costs of home appliances may face similar challenges. While deregulation can help lower prices, it must be done carefully to ensure that safety and environmental standards are maintained.

Trump's order to create employment opportunities and draw discouraged workers into the labor force could have a more immediate impact on prices. By increasing the labor force participation rate, this order could help ease labor shortages and lower wages, ultimately reducing prices for goods and services.

However, the most controversial aspect of Trump's economic agenda is his plan to ramp up domestic energy production and lower energy prices. Trump's "drill baby drill" approach may lead to increased energy production, but it could also result in increased exports, driving up domestic energy prices. Moreover, this approach may come at the expense of environmental protections, which could have long-term consequences for energy prices and consumer costs.

In conclusion, while Trump's executive orders aim to lower prices for American consumers, their effectiveness remains uncertain. Many of these orders face significant challenges, and some may even have unintended consequences. As Vice President JD Vance noted in his interview with Margaret Brennan, "It's going to take time to see the full impact of these executive orders, but we're confident that they will help lower prices for American families."

Only time will tell if Trump's executive orders can deliver on their promise to lower prices. In the meantime, consumers should remain vigilant and hold the administration accountable for its economic policies.