In Donald Trump’s economy, billionaires are getting richer as working families struggle to make ends meet. The gap between low-income and high-income wage growth over the past year was the widest in at least a decade, as the ultra-rich cash in on permanent tax cuts from Trump and Republicans’ Big Ugly Bill.
REMINDER: While a majority of voters say the cost of living is the worst they can remember, Treasury Secretary Scott Bessent said last month he is “sick of hearing about this K-shaped economy.”
As prices continue to outpace Americans’ wages and a majority of Americans cut back on spending, the ultra-rich are thriving in Trump’s economy. During Trump’s first year back in office, CEO pay grew 20 times faster than workers’ wages. At the end of 2025, the top 1% held nearly 30% of aggregate wealth, compared to just over 5% for the bottom 50% of the country.
The wealthiest Americans are responsible for a record share of consumer spending as the majority of low-income Americans have been forced to cut back on everyday essentials like food and medical care. One estimate found that the top 10% of earners accounted for nearly half of consumer spending in 2025 — the highest share on record.
A recent survey found that just 20% of Americans said it is easy to afford essential expenses, while nearly 70% said they feel overwhelmed by financial responsibilities at least every month. Another poll earlier this year revealed that more than 60% of Americans changed what groceries they buy in order to stay within their budgets; 44% cut back significantly on driving to avoid high gas prices; 31% put off medical treatment because of high costs; and more than one in four said they had to take on extra work or a second job to make ends meet.
