During a fiery speech in Ohio, Vice President JD Vance likened the U.S. economy to a sinking ship, saying, “You don’t turn the Titanic around overnight.”
Speaking to a crowd at Midwest Terminals on Jan. 22, Vance emphasized that the Trump administration is still dealing with the economic damage it inherited.
“What really pisses me off,” he said, “is that compared to when Donald Trump left office after his first term, you’re still about $2,000 poorer.”
Vance blamed the Biden administration for a wide range of economic challenges, including inflation, housing affordability, and stagnant wages.
“They did so much damage that it’s going to take us time to rebuild the great American prosperity that we had at the end of the first Trump administration,” he said.
But the Titanic comparison drew criticism for its drama and oversimplification.
While Vance paints a bleak picture of the Biden years, many of the issues he’s blaming on that administration, like inflation and housing costs, are more complicated and have been building for years under both parties.
Wages Are Up, But People Still Feel Behind
Vance touted early wins under the new Trump administration, including real wage growth.
“Under the first year of the Trump administration, you’ve already gained over $1,300 in real wage gains,” he claimed.
He also highlighted record-setting tax refunds due to policies like no taxes on tips, overtime, or Social Security income.
But while some Americans may see larger refunds, economist Michael Madowitz from the Roosevelt Institute notes those refunds are mostly tied to an unusual failure by the IRS to update withholding tables after a large tax cut for the wealthy.
That means some workers may have been overpaying taxes throughout the year and are now simply getting that money back.
Madowitz wrote in his Jan. 22 economic preview that the bigger issue for households isn’t just inflation anymore—it’s fear of job loss.
“The vibes are still bad, but they’re starting to come from a weak job market more than high inflation,” he said.
He pointed out that youth unemployment has stayed above 10% for six months and long-term joblessness has hit levels not seen since before the Great Recession.
Blame on Immigration, Tariffs, and Biden-Era Spending
Vance pointed to immigration and tariffs as core drivers of economic pain.
He argued that deportations and trade barriers under Biden raised housing costs by shrinking the construction workforce and increasing materials costs.
“If you get people out of the country who are taking up homes that ought to go to American citizens, that’s going to put downward pressure on prices,” he said.
But this interpretation runs counter to how many economists see the issue.
Madowitz noted that immigration crackdowns have actually worsened housing affordability by reducing labor supply. Combined with lumber tariffs and higher interest rates, costs to build have gone up.
Vance also blamed institutional investors for snapping up single-family homes, saying, “Every single person there is renting because that subdivision was bought up by a massive institutional investor. We’re going to stop large institutional investors from buying up American homes.”
While this has become a popular talking point on both the left and right, Madowitz points out that higher mortgage rates, driven in part by 2025’s tax cuts and rising government borrowing, are a more immediate issue for most families.
Mixed Signals on Inflation and Energy
Inflation cooled toward the end of 2025, but Madowitz warned that the numbers might be misleading.
A late-year government shutdown could have distorted the Consumer Price Index, and rising tariffs may drive prices higher again later this year.
Energy costs are also expected to remain elevated.
Despite low global oil prices, electricity and heating costs in the U.S. are climbing due to higher natural gas prices, AI-related demand, and aging infrastructure.
“These are not the gas price jumps that freak drivers out and fade in a few months,” Madowitz wrote.
“They are longer-term price increases that may have larger impacts over time.”
A Confident Tone, But Uncertain Ground
Despite these challenges, Vance remained upbeat.
“We are just getting started,” he said. “We’re investing in you. We’re investing in American workers.”
He acknowledged the financial stress many Americans still feel but insisted things are turning around:
“I don’t want you to just struggle to get by. We want you to have enough prosperity to yes, buy those medications and put food on the table, but maybe to take a little vacation.”
Vance urged voters to reject “far-left radicals” and continue backing Trump-era economic policy.
“Let’s keep doubling down on the American worker,” he said. “Let’s tell Marcy Kaptur and the rest of the crazy congressional Democrats that we are not going back.”
But economists like Madowitz caution against overselling early gains.
“After a year of moderate stagflation, 2026 is expected to be a pretty meh economic year,” he wrote.
The U.S. economy has taken hits from multiple directions, and turning things around may take more than political promises and analogies to sunken ships.