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Rising living costs have been a persistent strain for many Americans — and President Donald Trump’s sweeping tariffs have only intensified the pressure. It’s a concern Treasury Secretary Scott Bessent was pressed on during his latest appearance on MSNBC’s Meet the Press.
“We have seen prices increasing on staples like coffee, bananas, bacon. Inflation has gone up. It’s at 3% now up from 2% in April, when the tariffs were imposed,” host Kristen Welker noted (1).
“No, no, no, no, no. They weren’t. Inflation hasn’t gone up,” Bessent shot back. “We have slowed inflation. And we are working very hard to bring it down.”
Then he offered a solution that caught many viewers off guard.
“Kristen, I can tell you that the Council of Economic Advisers has a study. You know the best way to bring your inflation rate down? Move from a blue state to a red state. Blue state inflation is half a percent higher,” he said. “And that is because they don’t deregulate. They keep prices up. Energy is higher.”
The remark caused Welker to stumble briefly before moving on to her next question — and it immediately set off a wave of reactions, most of them sharply critical.
Economist Robert Gordon pointed to the sheer cost and upheaval involved in moving compared with the tiny difference in inflation Bessent referenced.
“Bessent’s recommendation that people save money by moving to red states is totally absurd,” Gordon told Newsweek (2). “The difference in inflation rates is trivial and would be more than totally offset by the financial and emotional cost of moving from one state to another.”
Social media echoed the sentiment. One top comment on X read: “Great message. Tired of high grocery prices? Sell your home, find a new job, buy a new home, move somewhere else, start life over. Magic! Now your grocery bill is $10 less (3).”
There’s also the question of whether the red-vs.-blue inflation claim holds up. While Bessent cited the Council of Economic Advisers, the CEA does not appear to have published a state-level inflation analysis showing a 0.5% gap (4).
A 2024 Wall Street Journal article reported an independent study that found nearly the opposite: “Metro areas with more Republicans and independent voters tended to have higher inflation in 2022 than places where Democrats live.”
Others note that inflation rates alone don’t tell the full story — wage levels matter just as much. Higher-paying regions tend to have higher price levels, which affects overall cost of living.
“Someone who is considering moving as a solution to their concerns about the cost of living needs to compare the LEVELS of wages and prices in the two places — not the rate at which prices have recently been increasing in the two places,” said economist Michael Woodford (2).
The broader reality is that higher prices aren’t confined to any political map. The erosion of the dollar’s purchasing power has been happening across the country — for decades.
According to the Federal Reserve Bank of Minneapolis, $100 in 2025 has the same buying power as just $12.05 did in 1970 (5).
The good news? Throughout history, savvy investors have always found ways to shield themselves from inflation’s bite.
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.
Its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Over the past 12 months, the price of the precious metal has surged by more than 50%.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that “people don’t have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”
Other prominent voices see further potential. JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce. Gold has also had a break out year so far, hitting highs of about $4,300 per ounce in October.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
Beyond gold, real estate has long been another go-to asset for investors looking to protect — and steadily grow — their wealth during inflationary periods.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 45%, reflecting strong demand and limited housing supply (6).
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, midnight maintenance calls or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying as much about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Prominent investors like Dalio often stress the importance of diversification — and for good reason. Many traditional assets tend to move in tandem, especially during periods of market stress.
This is where, for many investors, alternative assets come into play. These can include everything from real estate and precious metals to private equity and collectibles.
But there’s one store of value that routinely flies under the radar: It’s scarce by design, coveted worldwide and frequently locked away by institutions.
The answer? post-war and contemporary art.
Think about it: The supply of these pieces is limited and many famous paintings and sculptures have already been snatched up by museums and collectors. That scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, purchasing art has been a domain reserved for the ultra-wealthy — like in 2022 when a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history (7).
Now, Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy — can help you get started with this asset class. It’s easy to use and Masterworks has had 25 successful exits to date, distributing $65+ million in total proceeds (including principal).
Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks can handle all the details, making high-end art investments both accessible and effortless.
New offerings have sold out in minutes, but you can skip their waitlist here.
Note that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at masterworks.com/cd.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
@NBCNews (1); Newsweek (2); @ChrisRobinsonNJ (3); White House (4); Federal Reserve Bank of Minneapolis (5); S&P Global (6); Christie’s (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.