Sunday, October 1, 2017

Trump's Top Economic Adviser Thinks You Can Buy a New Car for $1,000

Gary Cohn, President Donald Trump’s chief economic adviser, said during a White House press conference that a “typical” family with two children making $100,000 a year. can expect a tax cut of $1,000, which would allow them to either renovate their kitchen or buy a new car.

Some problems:

According to the U.S. Census Bureau, the median household income was $59,039 in 2016.

According to Kelly Blue Book, the average new car cost nearly $35,000 as of January 2017.

And Market Watch reports:
As for a kitchen renovation, $1,000 might get you a fridge, but not much else. While a smaller remodel — which includes painting, refacing cabinets, upgrading the sink and adding a tile backsplash — can be done for about $10,000 to $15,000, according to, the average American kitchen remodel costs $21,800.


  1. The thinking here isn't what $1,000 can buy but what $1,000 can borrow. How much can a person borrow on a $1,000 of annual payments or buy on credit with an extra $1,000 down?

    Of course what nobody is talking about is that for anyone not married with children this will likely be tax increase.

  2. I've had to plunk down at least 3,000 greenbacks as downpayment for all new cars I've purchased in the last 9 years. I don't get where Cohn comes up with the $1,000 for a new car unless he's talking about buying a Yugo in 1989.

    1. You didn't look very hard. Most mfgs have been offering low or no interest or 0% down for years.

  3. Cohn is probably convinced that there is deflation in the economy.