'Treadmill of debt': Financial expert warns Trump's economy is trapping Americans
The high cost of inflation is leading to mounting credit card debt, as one former consumer watchdog leader lamented that Americans are living on a "treadmill of debt."
Speaking to MSNBC on Wednesday, one financial expert warned that inflation, tariffs and price gouging are making life increasingly difficult for the U.S., particularly as children go back to school.
Rohit Chopra, the former commissioner of the U.S. Federal Trade Commission and third director of the Consumer Financial Protection Bureau, disputed the White House's celebration of the latest inflation report.
Host Chris Jansing noted that the report celebrated "back to school shopping" with lower costs on things like "hotels, ship fares and sports tickets." It left her scratching her head.
"Hardly stuff for heading back to the classroom," Jansing said.
The list excluded things like the cost of backpacks, pencils and other writing supplies and shoes, all of which have grown in cost.
"In one recent survey, 44% said they'd have to take on debt to buy what they need for their kids this fall," reported Jansing.
Chopra noted costs for key items are "going way up."
"Here is what I'm worried about," he continued. "You're going to see all sorts of companies jack up prices, even if their products are not even subject to the tariffs, because they think they can get away with it. And Americans already have $1.2 trillion in credit card debt, with interest rates of 25% 26%. A lot of Americans are going to charge up more, and they will pay dearly."
Jansing cut in to quote the National Retail Federation, which said that the cost of school supplies will, on average, cost $900 more.
"A lot of them are going to rack up more debt," said Chopra, noting that at the same time basic things like electric bills have also increased. "So, it feels like a one-two punch of constant price hikes. And I thought that we were supposed to see lower prices in the grocery store, lower prices when it comes to buying clothes. That's not what we're seeing at all. And it is going to put people on a treadmill of debt."
Correction: A previous version of this article misquoted Rohit Chopra. The quote "treadmill of debt" has been updated.
See his comments in the video below or at the link.
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