Economic Discomfort Persists Despite Market Gains: A Divided America
Despite a rising stock market and falling unemployment rates, a significant portion of Americans remain skeptical about the health of the economy, with many feeling left behind by recent economic gains. Whereas some are experiencing financial stability, others are struggling with rising costs and stagnant wages, creating a stark divide in economic perception.
The Disconnect Between Macro Numbers and Personal Experience
Brooke Pinkham, a homeowner in the Seattle area, exemplifies this disconnect. While personally doing well and planning home improvements, he acknowledges that broader economic indicators don’t reflect the reality for many. “There are a lot of people whose incomes don’t go up when the stock market goes up,” Pinkham, a Democrat, stated. This sentiment highlights a growing concern that economic benefits are not being evenly distributed.
Uneven Distribution of Wealth and Market Gains
The gains from the stock market have largely benefited the wealthiest Americans. Last year, seven technology companies – including Amazon and Meta – accounted for 40% of the gains in the S&P 500 according to Fidelity. The richest 10% of households own approximately 90% of all stocks according to Federal Reserve data, disproportionately capturing the benefits of market growth. These households similarly drove consumer spending, accounting for around half of all spending in 2025, the highest rate since 1989 as reported by Moody’s Analytics and fueled the housing and automotive markets. Walmart’s recent growth has also been largely attributed to customers earning over $100,000 according to NBC News.
Struggles Among Younger Workers and Those with Limited Resources
Jeremy Kregar, a 23-year-old working in Portland, Oregon, represents a different economic reality. Despite earning $21 an hour, he struggles to cover his bills, including $20,000 in student loan debt. He sometimes skips meals due to financial constraints and feels homeownership, retirement savings, and emergency funds are unattainable. “Based on my lived reality, and that of my friends, it doesn’t seem like anyone’s doing better. It seems like everyone’s actually doing worse,” Kregar said, expressing a sense of being “gaslit by the government.”
The Impact of Trump Administration Policies
Economists point to several factors influencing the current economic landscape, including the Trump administration’s policies. Tariffs implemented during the Trump administration have driven up retail prices, disproportionately affecting lower-income households according to the Tax Foundation and creating headwinds for the labor market.
Slowing Job Market and Wage Growth
The job market is slowing, with wage growth decelerating and employers reducing hiring. The U.S. Added just 584,000 jobs in 2025, the worst year for hiring since the COVID-19 pandemic. Growth was concentrated in healthcare and education, while other sectors experienced job losses. Factors contributing to this slowdown include higher costs, tariff uncertainty, overhiring post-pandemic, and increased automation as reported by NBC News.
A Gaze at Trump’s Economic Legacy
During his first term, Trump focused on appealing to working-class voters, achieving accelerated wage growth for lower-paid workers and a drop in unemployment to a 50-year low before the pandemic according to the Trump White House archives. However, his approval rating on the economy has declined in his second term according to NBC News.
Current Administration’s Plans and Proposals
The current administration aims to replicate the successes of Trump’s first term through tax cuts, regulatory changes, and immigration restrictions intended to tighten the labor market and boost wages. Proposed programs include a cap on credit card interest rates and a 50-year mortgage option. Some limited prescription drug price cuts have been implemented, but may be offset by potential increases in health insurance costs. Long-term initiatives, such as Trump-branded savings accounts for children, are expected to grab years to yield significant results.
Tax Cuts Favoring the Wealthy
The most substantial benefits from recent tax cuts are projected to flow to wealthier households, including business owners, homeowners in high-tax states, and those with large inheritances. These cuts build upon decades of tax policies that have favored the wealthy as analyzed by the Tax Policy Center. For example, households earning between $460,000 and $1.1 million are expected to receive an average tax cut of $21,000 in 2026, while middle-income households earning between $67,000 and $119,000 will receive approximately $1,800.
Persistent Struggles for Low-Income Households
Liz Doyle, a 67-year-old voter in Oklahoma, exemplifies the ongoing financial challenges faced by many. Rising prices for essential goods, coupled with quadrupled property taxes, are straining her budget, which relies primarily on Social Security income.
“The grocery prices are absolutely freaking ridiculous,” Doyle said. “Coffee prices, what in the world?”
Despite voting for Trump, Doyle questions whether his policies are truly beneficial, stating, “President Trump has done so much better than Biden…But the question is: Is Trump that good, or was Biden that bad?”