Kenneth Glad
Household affordability remains in focus as the pace of US expansion eases. Federal data show continued growth alongside price increases that remain above the central bank’s longer-run objective.
US economic growth slowed in the second quarter of 2026. Real GDP rose at a 1.5 percent annualized rate, according to the Bureau of Economic Analysis, after expanding 2.1 percent during the first three months of the year.
The PCE price index was 3.7 percent higher in June than a year earlier, writes Morningstar. That left the Federal Reserve’s preferred inflation measure above its 2 percent longer-run objective.
A separate report released by the Bureau of Labor Statistics on August 12 put July consumer-price inflation at 3.4 percent year over year. That figure arrived after the economic releases discussed during David Cay Johnston’s appearance on the podcast, The Dean Obeidallah Show.
Household affordability stays central
Johnston, a Pulitzer Prize-winning investigative journalist who teaches at Rochester Institute of Technology, argues in the episode that positive GDP growth can coexist with significant financial strain for families whose regular household expenses continue to rise.
His criticism centered on prescription-drug pricing, taxation, corporate concentration and stock buybacks. Johnston contended that some government rules and business practices deliver disproportionate benefits to major companies and affluent investors.
The July 30 BEA release showed personal income rising 0.2 percent from May to June. Over the same broader period, prices remained elevated, with the PCE price index up 3.7 percent from a year earlier. Johnston’s point was simpler: For many Americans, whatever gains they are seeing in income are being eaten away by higher everyday costs.
The Trump administration has defended its economic record by pointing to investment, manufacturing, tax policy and consumer confidence. White House releases has presented those measures as signs that its program was producing stronger economic conditions.
Tax enforcement enters debate
The Internal Revenue Service was another focus of Johnston’s criticism. He questioned whether the agency retains enough capacity to investigate complicated arrangements involving wealthy taxpayers and large corporations.
Tax policy has been a major part of Johnston’s career. His reporting, according to the Rochester Institute of Technology, has covered taxation, executive compensation and inequality, including during 13 years at The New York Times.
Johnston tied the issue of tax enforcement to broader concerns about government oversight. He argued that loyalty to Trump has increasingly shaped institutions that are meant to operate independently.
He also raised concerns about future elections. He predicted that federal enforcement activity could discourage participation in politically competitive areas and suggested that actions near polling locations could affect turnout.
Congressional oversight also drew criticism. Johnston, who has covered Donald Trump for decades, argued that Republican lawmakers have been too reluctant to challenge the president when questions arise about executive power and government accountability.
The economic questions will produce fresh evidence sooner. The United States entered the second half of 2026 with slower but still-positive GDP growth and PCE inflation above the Fed’s objective. Upcoming GDP, inflation and personal-income reports will show whether price pressures ease as growth continues.
Sources: The Dean Obeidallah Show; Bureau of Economic Analysis; Bureau of Labor Statistics; Morningstar; Rochester Institute of Technology; the White House
