The Economy Isn't Working for You

1-11-2026

A recent piece touted the administration's "good economic news." The headline figures are accurate, but they tell a misleading story about what's actually happening for middle-class Americans.

What's Really Driving the Numbers

GDP is the sum of consumption, investment, government spending, and net exports. Each component tells a less flattering story up close:

• Consumption growth has been driven largely by affluent consumers with significant asset wealth, not broad-based wage gains.
• Investment growth has been concentrated in AI infrastructure and data centers, plus inventory stockpiling ahead of new tariffs — not new factories employing ordinary workers.
• Government spending increases have gone disproportionately to military exercises and weapons purchases, even as social programs that directly help people have been cut.
• Net exports improved partly because of the new tariff regime — but the cost of those tariffs will land on American consumers in 2026 and beyond, and businesses are already shifting supply chains elsewhere.

The Stable Job Market, Up Close

Federal workforce reductions have pushed many former government employees into lower-paying jobs. The broader labor market remains stagnant, weighed down by uncertainty over AI displacement and tariff effects.

The Stock Market Milestones, Up Close

Record markets are being driven overwhelmingly by AI and data-center investment. Anticipated job losses from automation are, perversely, part of what's inflating corporate profit forecasts — and it's worth asking which specific corporations are actually driving the rally.

Cooling Inflation, Up Close

Gasoline prices fell because of a supply glut — Brent crude averaged roughly $70 a barrel, a five-year low. But that's about the only unambiguous win. Residential electricity rates jumped sharply in several regions; some business customers saw bills rise by as much as 29 percent due to capacity charges. Natural gas prices rose nearly 40 percent, driven by data-center demand and LNG exports. Food prices rose roughly 3 percent. Housing remains expensive due to high interest rates and private-equity buying. The cost of internet, phone, and car repair all rose. Credit card debt rose nearly 6 percent. The personal savings rate fell to its lowest point in two years. New car prices remain at record highs.

The Real Summary

The price of nearly everything middle-class Americans actually need to live has gone up. Meanwhile, this comes against a backdrop of striking pay-to-play dynamics around the administration itself: hundreds of millions of dollars in campaign and inauguration contributions from a small number of billionaires, hundreds of millions more toward a presidential ballroom project, and well over a billion dollars in crypto-related income and token holdings flowing to the Trump family over a single year, with billions more in additional foreign and unrealized holdings.

It's worth asking plainly whether donations and investments at that scale come with no strings attached.