How much is the war hitting American's bottom line?

5/5/202611 min

There already was an affordability crisis in the U.S. How the war with Iran is making life more expensive.

President Trump says the economy is “roaring.”

That as Americans are paying an average price of $4.48 a gallon for gas on Tuesday.

A year ago it was $3.17.

The reason for that increase — the U.S.-Israel war with Iran, which resulted in the closing of the Strait of Hormuz.

Gas prices are just one measure of the cost of living in the United States. But they’re a significant one.

Martha Gimbel, executive director at the Budget Lab at Yale, weighs in on how the war with Iran is affecting American's bottom line.

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This episode was produced by Karen Zamora, with audio engineering by Ted Mebane.

It was edited by Christopher Intagliata and Courtney Dorning.

Our executive producer is Sami Yenigun.

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Clips

First 90 seconds

Mary Louise Kelly· Host0:00
It's Consider This, where every day we go deep on one big news story. Today, living in a war economy.
Donald Trump· Soundbite0:08
Our country's booming now, despite the fact that we're in a, I call it a mini-war, 'cause that's all they are.
Mary Louise Kelly· Host0:14
A mini-war, that's what President Trump is calling the war with Iran, and on Monday, at a White House event for Small Business Week, he seemed to downplay how that war is affecting the US economy.
Donald Trump· Soundbite0:26
Thanks to these pro-growth policies, our economy is roaring, and factory construction is con- is way up. Consumer confidence is way up. Business investment is more than triple compared to that of just a short time ago.
Mary Louise Kelly· Host0:40
The data does not reflect consumer confidence being way up. American families are feeling the pinch. Mortgage rates are climbing. Gas prices are the highest they've been in nearly four years, and that is driving up the cost of food. Consider this, we already had an affordability crisis in the US. Now, the war with Iran is making life more expensive. [gentle music] From NPR, I'm Mary Louise Kelly.
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