Business Daily – "America's Affordability Question"

BBC World Service – January 20, 2026
Host: Rahul Tandon
Guests:

• Samira Hussein, North America Business Correspondent, BBC
• Liberty Vitar, Data Science Professor, Olin Business School and Political Commentator
• Oren Cass, Founder and Chief Economist, American Compass
• Various U.S. Shoppers and Zach, a working musician from Florida

Episode Overview

In this episode marking the first anniversary of President Donald Trump’s return to office, Business Daily examines “America’s affordability question:” Are Americans still facing a cost of living crunch, even as official inflation figures have dropped? The program explores the disconnect between economic statistics and public sentiment by analyzing inflation data, discussing real wages, and hearing firsthand accounts from Americans grappling with rising expenses for essentials like groceries, housing, and energy.

Key Discussion Points & Insights

1. Understanding Inflation and the CPI

[02:42–04:07]

• Consumer Price Index (CPI): Samira Hussein explains that the CPI tracks a basket of goods—food, energy, housing, etc.—to measure the rate of inflation.

  "So if you look at the most recent numbers, you'll see that inflation is around 2.7% ... That doesn't mean that all food and all housing and all gasoline has all gone up by 2.7%." — Samira Hussein [03:03]

• Inflation has decreased significantly from its pandemic peak (~9% in June 2022), now resting at 2.7%. However, certain sectors like groceries and restaurant meals have risen at a faster rate.

• Inflation during Trump’s second term has fluctuated in the 2.7–3% range.

2. Why Many Americans Feel Worse Off

[05:01–06:14]

• Despite inflation cooling from its pandemic highs and real wages rising over the last decade, many Americans report feeling financially strained.

• Anecdotal Evidence:

  "My grocery bill has actually doubled. The one that costs me the most is meat." — Melina, shopper in Georgia [06:14]
  "They barely can pay their rent." — Tyreek Johnson, shopper in Atlanta [07:14]

• Samira Hussein notes a lag in how economic improvements reach consumers, and that aggregate numbers often don’t reflect individual experiences.

3. Long-term Affordability Problems

[08:01–10:04]

• Oren Cass: There is a long-term, systemic affordability issue—especially in the ability of a typical worker to provide for a family.

  "...it really did used to be the case that you could afford it. And, and it really is the case that you can't afford it anymore." — Oren Cass [09:33]

• Liberty Vitar: Price increases are part of a long-term trend, but spikes, not just steady inflation, cause hardship. Blame often falls on whichever administration is in power.

• Essential expenses—like food and gas—loom largest in how people feel about their finances, regardless of percentages.

  "If you can't buy groceries for your family, you don't care whether inflation's 1% or 10%. You can't buy groceries for your family." — Liberty Vitar [10:17]

• Policy changes—like the “Make America Healthy Again” (MAHA) agenda, which removes certain additives from food—may drive up some prices further.

4. Energy, Gas, and Policy Impact

[12:53–13:52]

• Trump’s View: Lower gas prices, he claims, bring down the cost of everything due to their knock-on effect on transportation and production.

• Zach’s Testimony (Musician, Florida): Real-life expenses—housing, energy, food, parking—have all increased, sometimes dramatically.

  “My electric bill ... December of that year I paid $70 ... last month ... $175.” — Zach [13:52]

  “...all of this stuff has definitely gone up a price over the course of the past few years. Tiny trips like this are getting pretty expensive.” — Zach [15:03]

• Rising Energy Costs:

  "Increasing prices of electricity has outstripped inflation by 10 percentage points since 2019." — Rahul Tandon [15:17]

• Oren Cass: U.S. energy policy intentionally made energy more expensive in the shift to greener sources, a cost he argues policymakers didn’t adequately explain to the public.

• Liberty Vitar: Jobs lost in the shift away from cheap energy sources (like coal) should be part of the affordability calculation. Affordability problems are seen not just in energy but in sectors like healthcare.

5. The Communication Gap and Political Accountability

[17:34–18:45]

• Despite improvements, many Americans still feel worse off. According to the University of Michigan Sentiment Survey, 44% feel worse off than a year ago.

• Oren Cass: Suggests policymakers be honest about economic realities, as promises of quick fixes undermine trust.

  "...When they are not true, they just make matters worse." — Oren Cass [18:32]

• Liberty Vitar: Repetitive explanations (like blaming COVID for food prices) lose resonance with the public. The need is for actionable solutions, not just narratives.

  "The cost of food for people is skyrocketing ... to give you a real number: 12 Nutri-Grain bars ... are five bucks. Whereas Truvani ... $42 for 12." — Liberty Vitar [18:45]

Notable Quotes & Memorable Moments

• “If you can't buy groceries for your family, you don't care whether inflation's 1% or 10%.” — Liberty Vitar [10:17]
• “My grocery bill has actually doubled. ... To me, it's no reason for eggs to be $6 for a dozen when they were what, $2, $2.30 for a dozen.” — Melina, shopper [06:14]
• “Jobs lost in the shift to greener energy should be part of the affordability calculation.” — Paraphrased from Liberty Vitar [16:27]
• “We need a different trajectory for the economy generally ... but also ... leaders who can talk clearly and honestly about what is happening and why.” — Oren Cass [17:50]

Timestamps for Important Segments

• [01:16] Episode introduction & framing the affordability question
• [02:42] Explanation of the Consumer Price Index and current inflation
• [05:01] The paradox of improved numbers vs. public sentiment
• [06:14] Shoppers’ experiences with prices in Georgia
• [08:01] Expert analysis on long-term trends in affordability
• [10:17] Discussion of what truly matters to families: gas and groceries
• [13:52] Zach’s on-the-ground view: Florida housing, energy, and groceries
• [15:17] Outpacing inflation: The spike in electricity prices
• [17:34] Policy and the communication challenge for politicians
• [18:45] Real-life examples of increased costs for healthy food
• [19:37] Closing thoughts: Prosperous economy, high costs, hard solutions

Summary

This episode provides a multifaceted look at why so many Americans feel a persistent “affordability crunch,” despite data showing inflation falling and economic growth outpacing other wealthy nations. The discussion reveals:

• Sector-specific price spikes (not reflected in headline inflation).
• Real wage growth lagging behind actual everyday expenses.
• Structural shifts (health and energy policy, supply chain shocks) that affect affordability across the board.
• A public increasingly skeptical of official narratives and seeking more practical solutions to their financial stress.

By interweaving data, expert commentary, and everyday voices, the episode makes clear that America’s cost-of-living crisis is more nuanced and persistent than topline numbers suggest.