The Wealth/Income Gap Is Wide - And Growing Much Wider Under Trump/Republicans

 The following is part of an article by Shannon Pettypiece at NBC News:

How’s the economy?

Not bad if you’re rich.

Demand for luxury yachts and private jets is surging thanks to last year’s tax law. Sales of $10 million-plus mansions are booming as stocks hit new highs. And the wealthy and powerful will get to enjoy a new ballroom for galas at the White House.

What if you aren’t rich?

The typical American can’t afford the median-priced home. A new car is out of reach for many, with the average monthly payment exceeding $700. Food banks are seeing a growing number of people skipping meals because they can’t afford groceries, and more middle-class Americans are selling their plasma to make ends meet.

The divide between rich and poor in America is the widest it’s been in at least a generation — and growing. The amount of wealth held by the top 1% increased at more than double the rate of the bottom 90% in the first nine months of last year, according to Federal Reserve figures. At the very top, Elon Musk’s fortune is approaching that of legendary 19th-century businessman John D. Rockefeller when looked at as a share of the overall U.S. economy.

A variety of factors have shaped the struggles of everyday Americans and fueled the gains of the wealthy: The pandemic disrupted the housing market, making it harder to afford a home. Stocks have surged, driven by enthusiasm over AI. Manufacturing has waned, hiring has slipped and costs continue to rise.

President Donald Trump’s policies are amplifying these trends. One year into his second term, his administration has cut programshelping lower-income households while advancing policies benefiting the wealthy and corporations. He’s signed legislation to cut food stamps and Medicaid benefits and put new restrictions on low-income housing assistance and student loans. To cope with higher costs from tariffs, he has suggested Americans buy fewer dolls for their children.

Meanwhile, the Trump administration has given billions of dollars in tax cuts to corporations and the wealthy and loosened regulations on banks while easing rules around cryptocurrency, which he’s benefited from personally. . . .

What’s clear is that the divide between the wealthiest Americans and everyone else has been growing for decades — and shows no sign of slowing. The ramifications of Trump’s policies widening this divide could go beyond Americans’ bank accounts, shaping the political landscape ahead of November’s midterm elections, with multiple polls showing a growing number of voters disapproving of Trump’s handling of the economy.

For many people, these trends are shaking a core belief: that it is possible to get ahead in America. . . .

Americans born in the 1980s were less likely to earn more than their parents, compared with those born in the 1940s, a 2016 study by Stanford University economists found. Today’s households are also facing higher costs, including spiking health care premiums and deductibles, as well as child care expenses.

These struggles are not equally felt. As of last October, the top 1% held 32% of America’s wealth, up from about 23% in 1990. The wealth held by white households far outstrips that of Black and Hispanic households.

Slowing wage gains have contributed to the widening gap between rich and poor. Since 1979, wages for the bottom 90% of earners have increased 44%, while wages for the top 1% of earners have risen more than 180%, a 2024 report from the Economic Policy Institute found. . . .

The Trump administration’s regulatory cuts, along with tax breaks for corporations in last year’s tax law, sent stocks to record highs last year. Those heavily invested in technology companies are gaining the most — just seven tech companies, including Amazon and Meta, were responsible for 40% of the gains last year in the S&P 500.

While most Americans have some investment in the stock market, a disproportionate share of gains have gone to the wealthy, with the richest 10% of households owning around 90% of all stocks, according to Federal Reserve data.

Those same households were responsible for around half of all consumer spending in 2025, the highest rate since at least 1989, according to Moody’s Analytics. Wealthy households also buoyed the housing market and new car sales over the past year. Walmart said last month that most of its growth was coming from households making more than $100,000. . . .

Among the ways Trump has affected Americans’ bottom line is through his tariffs, which have driven up retail prices, said Doug Holtz-Eakin, president of the American Action Forum, who worked in the George W. Bush administration. Higher prices disproportionately affect those with less disposable income to absorb price hikes. . . .

The slowing job market is putting significant pressure on households. Wages aren’t rising as quickly as in recent years, and employers have pulled back on hiring. The U.S. added just 584,000 jobs in 2025, the worst year for hiring since Covid. And most of the growth was driven by a handful of industries, like health care and education.