As we near the 100th day of Trump’s second term, the financial standing for the majority continues to deteriorate. Nowhere does this ring more true than in the life of Traci Dixon, a certified nursing assistant grappling with the escalating cost of living. In spite of living under several administrations, both Democrat and Republican, never has she found herself more financially strained than under Donald Trump’s watch. Trump’s assurances of quick economic recovery seem hollow, as the overall sentiment appears bleak and the nation struggles under the shadow of tariffs, unpredictable market shifts, and soaring grocery prices.
The average American, a mere observer to the economic rollercoaster incited by widespread federal job cuts, the capricious nature of the stock market, and the president’s mercurial tariffs, is left disillusioned. A recession looms ominously on the horizon, predicted by leading economists. High gas and grocery prices, coupled with mounting credit card debt and car payments are making life increasingly difficult for millions of Americans. While business leaders desperately seek stability, farmers cope with dwindling federal contracts and nonprofits are left grappling with layoffs due to reduced White House spending.
Substantial uncertainty is injected into the economy by Trump’s tariffs. This is resulting in certain businesses inflating costs and passing the burden onto the consumers. JP Morgan analysts have noted panic buying as a reaction to this; people are rushing to purchase expensive items in anticipation of further price hikes. As Trump’s battle against Biden and later Harris unfolded, he promised major economic alterations. Although some changes have occurred, the broader picture appears gloomier.
Although Trump managed to incite tariff threats, causing major companies like Apple, Johnson & Johnson, and Abbott Labs to invest in new factories, the stock market is fluctuating wildly under Trump’s leadership. A significant 9% drop since he assumed office has wiped billions off retirement and 401K accounts across the board, regardless of the political affiliation of the holder. Meanwhile, Trump fanatics, like James McMorrow, cling tightly to the few and minor advantages they can find.
Despite some price relaxations, McMorrow still embraces the Trump leadership, holding the belief that under Harris, things would have slid further downhill. However, McMorrow’s viewpoint echoes a sympathy for the immigrant workforce, observing the detainment and deportation of Brazilian workers who contribute significantly to the local economy. While he advocates for a more discerning approach to immigration, he resigns himself to the belief that the current harsh measures are worthwhile.
Trump’s bold campaign claim of eradicating inflation overnight, halving energy bills within a year or so, and immediate food cost reduction has been met with a significant reality check. While a small segment of the Trump support base still ardently believes in his economic promises, the majority are yet to witness any significant relief. Traci Dixon shares her daily struggle to manage skyrocketing gas prices, which render commuting to work a challenge in itself.
Although a minor slowdown in inflation was observed in March (2.4% compared to February’s 2.8%), it was attributed primarily to a 10% decrease in gas prices. A component of reduced travel costs is Americans rolling back their holiday plans. This somewhat contradicts President Trump’s promise during his campaign to lower gas prices to under $2 per gallon.
Trump’s economic leadership is increasingly under scrutiny, as evidenced by a recent Pew Research Center survey analysing his handling of the economy. Confidence levels have dipped; while a majority were confident in Trump’s economic policy decisions last November, currently 54% express little or no confidence, with only 45% maintaining their assurance.
In contrast, during their campaigns, Democrats Biden and Harris discussed comprehensive strategies to strengthen the American economy in the post-COVID world. Their performance appeared more robust compared to other large nations. However, Trump appealed emotionally to Americans who were feeling the pinch of escalating costs of basic necessities like eggs, gas, food, and car insurance, promising fast solutions.
Sadly, Trump seems to be learning a harsh truth about presidencies: affecting price reductions is hard, while destabilising the stock market is alarmingly easy. Trump’s inconsistent tariff policy, cost hikes, looming inflation, and rising unemployment rates have provoked concern among financial experts and Federal Reserve chairman Jerome Powell alike.
Trump’s tariff policy causing immediate economic distress is palpably noticeable, with average households predicted to pay an additional $3,800 this year due to the increased tariffs. To make matters worse, rising prices for cars and houses, alongside steadily climbing grocery bills, pile on the financial pressure. Household debt collectively surpasses $18 trillion, and assistance requests to resources like the 211 service, supported by the United Way, have spiked.
Even those able to secure fulltime employment, like Traci Dixon and her wife, find it hard to make ends meet. Managing to maintain a full-time job appears to be not enough as their cost of living steadily increases without a matching compensation adjustment. It seems a common theme for many citizens is the growing challenge of keeping afloat amidst the escalating costs, without seeing a corresponding increase in their incomes.
The situation on the ground is indeed a challenging one, encapsulated by the tale of Aaron Washington, a man that lost not just his home and job, but nearly his life to an unforgiving economy. The financial strain is telling, and one can’t help but express the sentiment echoed by Washington: ‘If you are at the bottom, it’s a lot harder to punch up right now. I can’t imagine making it to middle class in the next 10 years.’ It appears people are grappling with financial pressures more than ever amidst promises of prosperity that have not materialised.