GDP Gains Benefit Rich as Working Class Suffers Under Trump’s Policies
While the latest economic data indicated strong growth exceeding 4%, a closer examination reveals a “split economy.” Primarily, the growth is fueled by spending from the top 20% of income earners, contrasting sharply with the struggles faced by those in lower income brackets, who are increasingly relying on buy-now-pay-later options. Further analysis highlights stagnant income growth for workers, with gains predominantly concentrated at the top of the income ladder. Consequently, a divergence is emerging where wealthy Americans’ take-home pay is rising significantly faster than that of poorer households, contributing to souring public sentiment on the economy despite the headline GDP figures.
John Q. Hosedrinker