The Trump Economic Mirage: Endorsed by the Many, Rewarding a Few

Neoliberal Illusions: How Rosy GDP Figures Mask Growth Driven by the Wealthy & aimed at the Wealthy

By Yiannis Damellos
Source: POLITICO
12/24/2025 

President Donald Trump’s return to office has resulted in an economy booming for the wealthiest Americans, even as broader public sentiment tells a different story.

According to Sam Sutton's article in POLITICO and the data from the Royal Bank of Canada, in the first half of 2025, the top 10% of U.S. earners, that is, the rich and famous, spent a staggering $20.3 trillion, nearly matching the $22.5 trillion spent by the remaining 90% of the population. This spending surge is largely supported by a soaring stock market, inflated real estate prices, and significant wage increases among the rich. In contrast, Bank of America reports that top earners saw their take-home pay rise by 4% over the past year, while lower-income households experienced only a 1.4% increase.

This financial clout has kept the economy buoyant, with the Commerce Department recently announcing an impressive 4.3% GDP growth during the third quarter. This was growth for the affluent, although Trump heralded it as evidence that the "Trump Economic Golden Age is in full swing." 

A Golden Age where Only the Wealthy Prosper?

You don't need to be a radical leftist to recognize that these impressive economic figures mask the reality of wealth concentration and increasing economic disparity. You could be a farmer struggling with declining sales due to Trump's tariffs on China and other nations, or an urban service worker who saves diligently, only to find that most of your income goes toward mortgage and healthcare expenses.

On the contrary, according to Sutton's article, business leaders in affluent areas, such as Palm Beach County, celebrate their fortunes — “It’s the Roaring ’20s here,” declares Douglas Evans, president of the Palm Beach Chamber of Commerce. This optimism starkly contrasts with the struggles faced by most American voters, especially those poor millions who voted for the wannabe Emperor of the US.

Poll after poll reveals that many citizens are grappling with rising living costs and a faltering job market, highlighting the deepening social inequality in America. The Federal Reserve Bank of Boston reports that low-income consumers now carry “substantially” higher credit card debt than they did before the pandemic, a burden that disproportionately affects vulnerable populations.

As prices for essential goods, housing, and healthcare continue to rise due to inflation created by Trump's tariffs and the implementation of neoliberal policies, lower-income families find it increasingly challenging to make ends meet. Many are forced to rely on credit just to cover basic expenses, exacerbating their financial strain and perpetuating a cycle of debt. This has broader social implications, as the stress of financial insecurity can lead to reduced access to quality healthcare, diminished educational opportunities for their children, and even mental health issues. 

In stark contrast, wealthier individuals, benefiting from asset appreciation and tax policies favorable to the rich, can weather economic storms more easily. This disparity in economic resilience deepens divides, fostering resentment and a sense of injustice among those who struggle to attain a secure financial footing. As these inequalities persist, the chasm between the affluent and the working class continues to widen, fueling social unrest and eroding the social fabric of communities across the nation.

As Trump caters to the Rich, his Popularity Dwindles

Despite the economy's ostensible strength, Trump’s approval ratings have dipped, leaving some of his allies perplexed. Economist Stephen Moore, a former Trump adviser, expressed his confusion: 

“I’m mystified by the affordability debate. The economy is exceptionally strong right now. If trends continue, it will be increasingly difficult for Democrats to argue otherwise.” 

Yet, there is no mystery here. While Trump's economy may appear robust on the surface, the stark realities of rising living costs and widening inequality undermine claims of overall strength, making it clear that many Americans are struggling despite positive GDP numbers.

If you belong to this 10% of rich and famous, naturally, traditional indicators of a thriving economy seem evident: Wall Street banks and law firms are flourishing, with investors pouring billions into high-risk AI startups that have birthed a new class of billionaires. Projections indicate that mergers and acquisitions may reach $2.3 trillion in 2025, a 49% rise from the previous year, predominantly benefiting wealthy investors. Corporate profits surged by over $166 billion in the third quarter, overshadowing a mere $6.8 billion increase from the previous quarter.

Luxury goods, from premium hotels to Swiss watches, remain in high demand, even as consumer surveys project a more somber economic outlook.

Banks and Bannons in full support of the Gilded Age of Trump

Richard Ramsden, managing director at Goldman Sachs, noted that while wealthier consumers are ramping up spending, data suggests that lower-income households still show positive spending growth. Analysts at S&P Global anticipate a moderation in consumer spending next year, yet highlight that U.S. households currently hold strong balance sheets.

Administration officials express hope that the president's tax policies—featuring new deductions for businesses and hourly workers—will stimulate job growth and increase disposable income among the populace. Initiatives like Trump-branded investment accounts for newborns and expanded retirement investment options aim to empower working-class Americans to benefit from the financial upside.

Steve Bannon, friend of convicted pedophile Epstein and former chief strategist to Trump, emphasized the need for a relentless focus on economic growth and the promise of job creation stemming from his supply-side tax cuts.

Reality checks

Nevertheless, this narrative may falter if economic conditions persist as they currently are. Analysts caution that consumer spending could decrease if hiring remains stagnant and unemployment, currently at 4.6%, continues to rise. The JPMorgan Chase Institute reported weak income growth, particularly for older workers, and significant flat balances among account holders. The American Financial Services Association has warned of potential deterioration in loan performance as subprime borrowers show signs of distress.

At the Yale CEO Conference, Federal Reserve Governor Christopher Waller highlighted the escalating financial divide that has emerged since spring. He pointed out that while affluent consumers benefit from access to low-interest credit, many middle-class Americans are burdened by high mortgage rates and elevated credit card costs, revealing a profound disconnect between the financial elite and everyday citizens.

This divergence is particularly alarming because it illustrates how wealth accumulation is increasingly concentrated among the rich, who can take advantage of favorable credit conditions to invest further and enhance their fortunes. In contrast, those in the middle and lower economic brackets face mounting financial pressures, making it challenging to save, invest, or even meet basic needs.

Despite the administration’s optimism citing wage growth for non-supervisory workers and a seemingly strong holiday retail season, these statistics often mask the deeper struggles faced by many households. The robust sales figures may suggest consumer confidence, but underneath, a significant number of Americans are grappling with serious debt issues. As their financial obligations increase, they find themselves trapped in a cycle of borrowing that leads to greater hardship.

Ultimately, while the affluent benefit from favorable economic conditions, ordinary citizens are left to navigate a landscape of rising costs and debt, illustrating an unfortunate reality: the economic gains seen at the top do not translate into financial security for the average American. This imbalance reinforces social inequalities, where only the wealthy can thrive, while the rest are left grappling with the burdens of affluence that they cannot share.