Trump Policies Deepen K-Shaped Economy as Richest 10% Hold 93% of US Household Stocks
Updated
Updated · The Guardian · Jun 4
Trump Policies Deepen K-Shaped Economy as Richest 10% Hold 93% of US Household Stocks
3 articles · Updated · The Guardian · Jun 4
Summary
The split between wealthy and non-rich Americans has widened in recent months, with stock-market gains lifting top households while inflation, debt and weaker affordability squeeze most others.
The richest 10% own 93% of US household stocks and account for nearly half of consumer spending, while inflation is near 4% and gas prices have jumped about 50% since Trump began bombing Iran.
Since 2019, inflation-adjusted hourly pay has risen just 3% versus a 50% jump in corporate profits, underscoring how gains have flowed to capital far more than labor.
Trump's broader agenda has reinforced that divide through $1 trillion in tax cuts for the richest 1%, $1.1 trillion in Medicaid and food-assistance cuts, and weaker consumer and labor protections.
Public frustration is mounting: a May CBS/YouGov poll found 67% disapprove of Trump's economic handling, while a University of Michigan survey showed consumer sentiment at a record low.
As AI boosts profits by replacing workers, what is the new economic value of a human?
Can soaring AI-driven markets and collapsing worker security coexist, or is a systemic crisis inevitable?
With AI automating white-collar jobs, are universities preparing students for a future that no longer exists?
The Declining Labor Share in the U.S. Economy: Causes, Consequences, and Policy Solutions in the Age of AI and Inequality
Overview
The report highlights a striking disconnect in the current U.S. economy: while overall economic data appears decent, public sentiment remains pessimistic because economic gains are increasingly concentrated among capital holders, leaving many Americans feeling left behind. Corporate earnings have surged, with the largest companies and tech giants seeing record profit growth and margins, supported by expectations of continued strong earnings. This lopsided distribution of income, where capital benefits far more than labor, underpins the public’s dissatisfaction and signals deeper issues in how economic prosperity is shared across society.