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The rising cost of living has been a persistent strain for many Americans — and President Donald Trump’s high tariffs have only added to the pressure. It’s a concern Treasury Secretary Scott Bessent was pressed on during his latest appearance on MSNBC’s Meet the Press.
“We’ve seen the prices of staples like coffee, bananas, bacon go up. Inflation is up. It’s now 3% compared to 2% in April when the tariffs were imposed,” noted host Kristen Welker (1).
“No, no, no, no, no. They haven’t been. Inflation hasn’t gone up,” Bessent replied. “We have slowed inflation. And we are working very hard to reduce it.”
He then offered a solution that surprised many viewers.
“Kristen, I can tell you that the Council of Economic Advisers has a study. You know what’s the best way to lower the inflation rate? You go from a blue state to a red state. Blue state inflation is half a percent higher,” he said. “And that’s 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 immediately sparked a flurry of reactions, most of them highly critical.
Economist Robert Gordon pointed out the sheer cost and upheaval involved in the move compared to the small inflation gap Bessent refers to.
“Bessent’s recommendation that people save money by moving to red states is completely absurd,” Gordon told Newsweek (2). “The difference in inflation rates is trivial and would be more than fully offset by the financial and emotional cost of moving from one state to another.”
Social media echoed the sentiment. A top comment on X said: “Great message. Tired of high grocery prices? Sell your house, get a new job, buy a new house, move somewhere else, start over. Magic! Now your grocery bill is $10 less (3).”
There is 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 gap of 0.5% (4).
A 2024 article in the Wall Street Journal reported an independent study that found almost the opposite: “Metro areas with more Republican 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 whole story—wage levels matter just as much. Higher paying regions tend to have higher prices, which affects the overall cost of living.
“Someone considering moving as a solution to their cost of living concerns needs to compare the LEVELS of wages and prices in the two places – not the rate at which prices have recently risen in the two places,” said economist Michael Woodford (2).
The broader reality is that higher prices are not 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 purchasing power as just $12.05 in 1970 (5).
The good news? Throughout history, savvy investors have always found ways to protect themselves from the bite of inflation.
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 cannot be printed at will by central banks.
Gold is also considered the best safe haven. It is not tied to any country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it, driving up prices.
In the past 12 months, the price of the precious metal has increased by more than 50%.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that “people typically don’t have an adequate amount of gold in their portfolio,” adding that “when times are bad, gold is a very effective diversifier.”
Other prominent voices see additional 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 breakout year so far, hitting highs of around $4,300 an ounce in October.
One way to invest in gold that also offers significant tax advantages is to open a gold IRA with the help of Thor Metals.
The Gold IRA allows investors to hold physical gold or gold-related assets in 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 protect their retirement funds against economic uncertainties.
To learn more, you can get a free informative guide that includes details on how to get up to $20,000 in free metals on eligible purchases.
Read more: Warren Buffett used 8 solid, repeatable rules to turn $9,800 into a $150 billion fortune. Start using them today to get rich (and stay rich)
Beyond gold, real estate has long been another asset of choice for investors looking to protect—and steadily grow—their wealth during inflationary times.
When inflation rises, property values often rise as well, reflecting higher costs of materials, labor and land. At the same time, rental income tends to rise, giving landlords an income stream that adjusts to inflation.
Over the past five years, the S&P Totality Case-Shiller US National Home Price NSA Index has risen by 45%, reflecting strong demand and limited housing supply (6).
Of course, high home prices can make buying a home more difficult, especially with mortgage rates still high. And being a landlord isn’t exactly hands-off work—tenant management, maintenance, and repairs can eat up your time (and your returns) quickly.
The good news? You don’t have to buy a property outright – or deal with running faucets – to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to gain exposure to this income-generating asset class.
Backed by world-class investors like Jeff Bezos, Arrived lets you invest in rental housing stock for as little as $100, all without the hassle of mowing lawns, midnight maintenance calls, or managing 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 want to buy 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 ownership.
With a minimum investment of $50,000, investors can own a portion of properties leased by national brands like Whole Foods, Kroger and Walmart that provide essential goods to their communities. Thanks to triple net leases, accredited investors can invest in these properties without worrying as much about cutting tenant costs into potential profit.
Answer a few questions – including how much you’d like to invest – to start browsing the full list of available properties.
Prominent investors like Dalio often emphasize the importance of diversification—and for good reason. Many traditional assets tend to move in tandem, especially during times of market stress.
This is where alternative assets come into play for many investors. These can include everything from real estate and precious metals to private equity and collectibles.
But there’s a store of value that routinely flies under the radar: It’s rare by design, coveted around the world, and often blocked 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 snapped up by museums and collectors. This scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, buying art was a domain reserved for the ultra-rich – as in 2022, when an art collection 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 high-end artwork stocks 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 over $65 million in total revenue (including principal).
Simply browse through their impressive portfolio of charts and choose how many shares you want to buy. Masterworks can handle all the details, making investing in high-end art both affordable and effortless.
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Note that past performance is not indicative of future returns. Investment involves risk. See Reg A disclosures at masterworks.com/cd.
We only rely on verified sources and credible third-party reports. For details, see our ethics and editorial 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. Offered without warranty of any kind.
