Economists Warn of Imbalance as Trump Cheers Stock Market Success

by Winston Wendell

Despite Trump’s optimism about the US economy, there are growing concerns about the gap between main street and wall street. In recent months, the stock market has seen a three week long rise. This has put the S&P 500 close to a record high which Trump is quick to point out as proof of his economic genius, especially when it comes to those with retirement plans. But many would say that the market’s success is misleading given the state of the economy for most Americans.

“The economic realities for most Americans are not nearly as positive as suggested by the president,” said Laura Tyson, a former Chair of the President’s Council of Economic Advisers for President Clinton. “While the stock market is doing well, wages are not keeping pace with inflation, therefore most Americans are not seeing an increase in their purchasing power.”

According to the latest report from the Labor Department, July saw an unexpected decrease in the number of new jobs. Although wages are rising, they are not keeping up with the increase in the size of the economy. The result? Average living standards for most of the population are actually dropping.

The impact of these numbers are being felt most by Americas’ middle and lower classes who are living from paycheck to paycheck. Credit card debt has skyrocketed as families with low wages are forced to use their savings or charge purchases to cover essentials such as groceries, housing and healthcare. Added to all this the price of electricity alone has jumped 12 percent since Trump took office, leaving many households struggling to pay their bills.

“Most people in America are not benefiting from the dramatic rise in profits of the large companies in the S&P 500, many of which are in the healthcare and energy industries,” said Joseph Stiglitz, a Nobel Prize-winning economist. “This imbalance cannot be beneficial to America’s future as it breeds social unrest amongst many groups due to growing inequalities in income and wealth.”

As Trump promotes the success of the stock market, many are concerned about the health of the American economy. Although those on the top of the economic ladder are enjoying the best increase in wealth in five years, many others are finding life as a middle class family becoming harder and harder to manage.