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Donald Trump Faces Reality of a K-Shaped Economy in 2025

Source: Donald Trump Can’t Dodge the Costly K-Shaped Economy (2025-11-17)

In 2025, Donald Trump’s claims of a booming economy clash with mounting economic realities, as recent policy shifts reveal. Despite insisting that the U.S. economy is the “greatest ever,” Trump has recently reversed course on tariffs, notably removing duties on essential food items like beef, coffee, and bananas—an acknowledgment of inflationary pressures and consumer hardship. This move underscores the persistent K-shaped economic recovery, where wealth and opportunity diverge sharply across different sectors and demographics. Recent data shows that while stock markets have surged, middle- and lower-income households continue to grapple with rising living costs, especially in housing, healthcare, and food. The latest Federal Reserve reports indicate that inflation remains above target levels, driven by supply chain disruptions and geopolitical tensions, which have also impacted global commodity prices. Unemployment rates have fallen to historic lows, yet wage growth remains uneven, with many workers seeing stagnant or declining real incomes. Meanwhile, consumer confidence is waning, and political polls highlight that inflation and economic stability are top voter concerns heading into the 2025 elections. Experts warn that Trump’s economic narrative may be increasingly disconnected from the lived experiences of ordinary Americans, risking further erosion of public trust. As the U.S. navigates this complex economic landscape, policymakers face the challenge of balancing inflation control with growth, while addressing the deepening inequalities that define the current K-shaped recovery. The evolving economic picture suggests that the era of unchallenged prosperity narratives is giving way to a more nuanced, and often troubling, reality—one that could shape American politics and policy for years to come.

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