President Trump Says Economy Is Good During Government Shutdown

President Trump says the economy is improving with lower inflation and crime. However, a government shutdown is causing problems. Experts and others disagree about how well the economy is doing.
By Newsroom | Politics, Economy |

President Trump has characterized the ongoing government shutdown as a Democratic action, while simultaneously highlighting what he describes as significant progress in reducing inflation and crime rates. The assertion comes as a shutdown, initiated in early October 2025, continues to affect federal operations, impacting services and federal workers.

Economic Landscape and Political Stance

The period surrounding the government shutdown in late 2025 saw competing narratives emerge regarding the nation's economic health. President Trump and his administration have pointed to a perceived stabilization and reduction in inflation, citing decreases in the cost of certain goods and a slower pace of price increases. This narrative is frequently contrasted with Democratic criticisms of ongoing affordability challenges in other sectors of the economy.

  • Key Economic Indicators: Reports from October and December 2025 suggest that while some prices, like gasoline, have seen notable decreases, others, such as utility bills, healthcare, and housing, have remained a source of financial strain for a majority of households.

  • Inflation Data Disruption: The shutdown's impact on government data collection processes has raised concerns. Specifically, the potential absence of the October inflation report for the first time in history was cited as a factor that could create "disarray" for businesses, markets, and the Federal Reserve, leaving policymakers without critical information.

Contrasting Views on Affordability

A central point of contention revolves around the concept of "affordability" and its connection to inflation.

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Trump says 'this is a Democrat shutdown' as he touts low inflation, falling murder rate - 1

Trump Administration's Position

President Trump has publicly stated that Democrats' focus on affordability is a "scam," arguing that their policies led to historically high inflation, which his administration is actively working to reverse.

"They say it and then they go into the next subject and everyone thinks, ‘oh, they had lower prices.’ No, they had the worst inflation in the history of our country." — President Donald Trump

The administration has highlighted positive trends, such as a stabilization in prices and lower gas prices, attributing these shifts to their economic agenda. They contend that inflation has been "stopped in its tracks" and is continuing to decline, with further improvements expected.

Democratic and Fact-Checking Perspectives

Critics and fact-checkers have challenged the administration's portrayal of the economic situation, particularly the claim that inflation is over or that prices are universally falling.

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Trump says 'this is a Democrat shutdown' as he touts low inflation, falling murder rate - 2

  • Overall Price Trends: Data indicates that overall prices, including grocery prices, have continued to rise, even if at a slower rate than in previous periods. While some specific items, like eggs, have seen price reductions, this does not reflect a general decrease in the cost of living.

  • Focus on Affordability: Reports suggest that Democratic politicians have indeed continued to discuss affordability issues, contradicting claims that the topic has been abandoned. Executive orders focused on affordability have been signed, indicating an ongoing engagement with the issue.

The Government Shutdown and its Implications

The government shutdown, which began in October 2025, has been a focal point of political discourse.

Administration's Framing of the Shutdown

President Trump has framed the shutdown as a consequence of Democratic actions, suggesting it presents an "unprecedented opportunity" to reduce spending on Democratic priorities. This framing aligns with a broader political strategy to attribute economic challenges and governmental dysfunction to the opposing party.

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"This is a Democrat shutdown." — President Trump

Impact and Stance of Opposition

The shutdown has led to the furloughing of federal workers and the halting of various government initiatives. While the administration has sought to leverage the situation, Democratic leaders have maintained that their party is gaining momentum as the shutdown persists. Senate Majority Leader Chuck Schumer, for example, has expressed confidence in Democrats' position during the ongoing impasse.

Expert Insights and Data Analysis

Analysis of economic data during this period reveals a complex picture, with differing interpretations of President Trump's statements on price reductions.

  • Inflation Rate vs. Price Levels: Experts note that a lower inflation rate signifies that prices are increasing more slowly, not that they are declining. This distinction is crucial when evaluating claims of falling prices.

  • Tariff Effects: The potential impact of tariffs on prices has been noted, with some analysis suggesting they could cause a one-time rise that may eventually fade.

  • Consumer Price Index (CPI): The CPI, a key measure of inflation, is expected to provide the most direct data. However, the disruption caused by the shutdown threatened the timely release of this critical report.

Conclusion

The period around late 2025 was marked by a significant divergence in political narratives concerning the U.S. economy. President Trump asserted that his administration had successfully curbed inflation and reduced crime, framing the government shutdown as a Democratic obstruction. This view was countered by data and analyses indicating that while some prices had stabilized or fallen, overall inflation persisted, and a broader affordability crisis remained a concern for many Americans. The government shutdown itself became a political tool, with both sides leveraging the situation to advance their agendas and assign blame.

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Frequently Asked Questions

Q: What did President Trump say about the economy?
President Trump said that inflation and crime rates are going down. He said his policies are making the economy better.
Q: What is a government shutdown?
A government shutdown happens when the government cannot agree on money. This stops many government services and federal workers.
Q: Is the economy really getting better?
Some prices have gone down, like gas. But other costs, like for housing and healthcare, are still high for many people. Experts say inflation is slowing, but prices are still going up.
Q: Did the shutdown affect economic news?
Yes, the shutdown made it hard to get important economic reports. This made it difficult for businesses and the government to know what is happening.