There is little mystery as to why Donald Trump won last week's election. rear Billions of dollars in election spending The two major party candidates fought mostly over the price of a loaf of bread.
According to exit polltwo-thirds of voters were dissatisfied with the economy, and 69% voted for Trump.
A few weeks before the election, The Economist published an article that read: glowing reviews He described the American economy as breathtaking and the envy of the world. The stock market set records, inflation was down and unemployment was low. “For the past three decades, the United States has neglected the rest of the rich world,” the paper said. Even in the poorest state of Mississippi, the average worker earns more than workers in England, Canada, and Germany.
In February, Federal Reserve Bank of St. Louis reported that wealth under the Biden administration increased “significantly” across all U.S. income groups from 2019 to 2022, with low-wealth groups enjoying the largest increases. The bank said the wealth of black and Hispanic families is at an all-time high.
However, the all-time high was not that high. Black families still own 16 cents on the dollar of white wealth. And although the inflation rate has fallen from 9% when President Biden took office, 2.4% in Septemberthe benefits didn't trickle down to grocery stores quickly enough to impact voters.
The Economist magazine warned: The biggest danger to the US economy The issue now is not President Biden's policies but his political acrimony. “America has no intention of losing its economic advantage,” the British magazine wrote. “But sooner or later, rotten politics will start paying a heavy price, and by then it will be difficult to turn around.” Consider this a fair warning.
Another issue reported in May by researchers at Duke Universitywhich means that the racial gap between rich and poor is widening. The latest data from 2019 to 2022 shows that the average gap in net worth between black and white households increased by 38%, far outpacing the rate of inflation. The study attributes this to Black families' inability to build wealth and pass it on from generation to generation.
But why are black families finding it difficult to build wealth in the first place? Historical practices and policies that systematically stripped wealth (such as redlining) “Continued barriers and the intergenerational nature of wealth make it extremely difficult for individuals and families to overcome the gap,” the St. Louis Fed said.
Kamala Harris may have been nervous when she promised to work for a company. opportunity economybut her plans were not revealed. For example, progressive policies would provide universal health care, free college and college tuition, tax credits for child care, and long-term programs to improve K-12 education to ensure that all young Americans will ensure that everyone has an equal opportunity to succeed. The idea would be to guarantee equality of opportunity but not equality of outcome.
However, although such ideas are common in the world, many developed countries Ranked high in quality of life, they are red meat for conservatives to scream socialism.
as I wrote Before Trump's 2016 election, there was evidence that there was “deep anxiety among Americans who have reason to feel that there are too few opportunities in our 'opportunity society.'” There are every signs that our democracy has become an oligarchy. It is not the country we were promised in our social contract. ”
A wealthy entrepreneur at the time Nick Hanauer He warned “fellow millionaires” of the future of hardship if income inequality does not reduce. “I have a message for my fellow filthy rich people and all of us living in a world of gated bubbles,” Hanauer wrote. “Wake up, people. This situation won't last long. If we don't do something to correct the glaring inequalities in this economy, the pitchforks will come upon us. There is no sustainable society.”
Next year there will be intense debate over whether to extend the so-called Trump tax cuts of 2017. Tax Policy Center notes that the cuts were skewed toward the wealthy, with the top 1% of households receiving more than $60,000, while the bottom 60% received less than $500.
President Trump has proposed further lowering the corporate tax rate, imposing high tariffs on imported goods, and extending the policy. Tariffs will raise consumer prices. President Trump wants to pay for the tax cuts by eliminating the “green energy” tax credit in the Inflation Control Act. those credits are Create jobs and lower energy bills for consumers Across the country, the most new jobs are in red states and congressional districts.
The New York Times reports that President Trump's economic plan will cause inflation to rise again. 9.3% by 2028. According to the Tax Foundation, interest payments are $3 trillion in new national debt It will erode American incomes and economic growth.
What I wrote in 2016 remains true: Elections are primarily held by “legitimate, economically oppressed segments of society who want to find leaders who will shake up a system that is rigged against them.” It was about “desire”.
One of the ironies, then and now, is that many economically disadvantaged voters chose one of America's plutocrats to be their champion. How indebted will he be to the other billionaires who funded and pledged to his campaign? preferential treatment?
We need to keep a close eye on how much President Trump cares about the people who gave him a second chance. Many of them simply want the first one.
William S. BeckerHe is executive director of the President's Climate Action Project and a former senior official at the U.S. Department of Energy.
