The math behind Trump's eye-catching economic ideas

In a record-length State of the Union address, President Trump threw out a string of eye-catching economic ideas.

- Jeanne Whalen & Rebecca Picciotto

Trump's State of the Union speech highlighted homeownership as well as raising revenues through tariffs and eliminating fraud.

(AFP)

Among them: new retirement accounts for Americans without access to 401(k)s; replacing income taxes with tariff revenue; balancing the federal budget by eliminating fraud; and lowering the cost of housing for buyers while preserving high home values for happy homeowners.

His proposals and promises come as American voters are increasingly frustrated with the economy. About 56% of Americans disapprove of his handling of it, compared with about 40% who approve, according to an average of polls collected by the nonpartisan Cook Political Report.

Here's a look at the math behind some of Trump's economic notions:

Trump is up against a fundamental dilemma in housing policy: how to lower home prices while also preserving equity for Americans whose homes are a large part of their wealth. “We're going to do both,” he said Tuesday.

The median home price in the U.S. is about $405,000, compared with $327,000 in 2019. For most households, that means pulling down a six-figure income to break into the market. But bringing down prices is a tough sell to people who already own. Home equity represents a median 45% of American homeowners’ overall net worth, a Pew Research Center analysis found.