Here’s a surprising twist in the economic saga: While gas prices are at their lowest in years, consumer confidence is tanking—and even one of Obama’s top economists feels a little sorry for Trump. Yes, you read that right. Jason Furman, a Harvard professor and former chair of the Council of Economic Advisers under Obama, recently expressed a rare moment of sympathy for President Trump on CNBC’s Squawk Box. Despite gas prices hitting a year-long low—with national averages dipping to just $2.85 a gallon—Americans remain deeply anxious about the economy. But here’s where it gets controversial: Furman argues that Trump isn’t getting credit for one of the few bright spots in his economic record. Is it fair to blame Trump for everything when gas prices are this low? Or are Americans right to focus on bigger economic worries? Let’s dive in.
Furman’s point is simple yet provocative: Gas prices are often seen as a political barometer, and right now, they’re working in Trump’s favor—at least on paper. But consumer confidence has plummeted to its lowest since April, and approval ratings show that many Americans are unhappy with how Trump is handling the economy. Why the disconnect? Furman suggests it’s because consumers are fixated on other rising costs, like groceries, which have soared nearly 30% in the past five years. And this is the part most people miss: Even when one area of the economy looks good, it’s the highest prices—not the lowest—that dominate public perception. That makes Trump’s job of easing economic fears incredibly tough.
Trump himself hasn’t made things easier. In a recent primetime address, he claimed to have inherited an economic ‘mess’ from the Biden administration, while also boasting that the economy is stronger than ever. He’s even proposed cutting checks for military personnel to offset housing costs, funded by tariff revenue that’s falling short of expectations. The mixed messaging only adds to the confusion. As Furman puts it, ‘Consumers are just in this sort of mindset where the highest price is the one they focus on and get upset about.’ It’s a problem with no easy solution, both economically and politically.
But the economic puzzle doesn’t stop there. The U.S. economy is sending mixed signals: GDP growth hit a two-year high of 4.3% last quarter, yet unemployment crept up to 4.6% in November—higher than the 4% benchmark. Furman questions, ‘If we only had the jobs numbers, we’d be calculating recession probabilities. But with GDP growth, we’re talking about boom times.’ This contradiction has economists debating whether we’re in a K-shaped recovery, where the rich thrive while the poor struggle. Furman, however, isn’t convinced. He points to strong wage growth and low gas prices as signs that the economy isn’t as lopsided as some claim. ‘Everyone wants prices to be 25% lower,’ he notes, ‘but nobody wants their wages to drop by 25%.’
Other economists, like KPMG’s Diane Swonk, disagree. She argues that the K-shaped economy is real, with businesses boosting productivity by doing more with less—often at the expense of hiring. This trend, exacerbated by AI displacing jobs, could widen the wealth gap even further. ‘Most of the productivity gains we’re seeing are just companies being hesitant to hire,’ Swonk explains. So, which view is right? Is the economy resilient, or is it leaving too many behind?
Here’s the bottom line: The economic landscape is more complex than headlines suggest. Low gas prices should be a win, but they’re overshadowed by bigger worries. Strong GDP growth should signal prosperity, but rising unemployment tells a different story. And while Furman sees reasons for optimism, others warn of a deepening divide. What do you think? Is Trump getting a raw deal, or are Americans justified in their economic anxiety? Let’s hear your take in the comments!
