The Trump Economy is not working for the American Middle Class
by Winston Wendell
October 21, 2026
While the share of labor in national income is a crucial indicator of how well the American worker is doing, it appears that during the Trump administration, the workers’ share of the fruit of their labor fell to historic lows. According to the Bureau of Labor Statistics, the labor share of business output, excluding farms, fluctuated between 56 and 58% during the Trump’s presidency years, which is the lowest it has been since records began.

Despite the increase in productivity, an indicator that the Trump administration was boasting of, the stock market as an indicator of how the American worker was doing was criticized by the New York Times . The paper revealed that the stock market was a “plummeting indicator of the worries of the average investor”. The Federal Reserve shows that the top 10% of Americans own about 89% of all the stocks, which means that the “market magic” was really just an indicator of how the wealthy and the super-wealthy were doing.
The main reason for this trend was the tax cuts initiated by the Trump administration in 2017 and 2025. The Washington Post reported that instead of raising wages, as was promised, the corporations used the extra cash to buy back their own shares, which drove up the prices on the stock market.
The Economic Policy Institute reports that the Trump administration, wages are growing slower than usual, and the decoupling of wages and productivity has reached a historic high. This has happened despite the fact that wages are supposed to be “the most important source of compensation for American workers”. It appears that the economic indicators are all skewed to favor the owners of capital over the laborers.
Sources:
Bureau of Labor Statistics – Labor Share Trends
The New York Times: The Stock Market is Not the Economy
The Washington Post: Corporate Tax Cuts and Buybacks
Economic Policy Institute – Wage and Productivity Gap
Federal Reserve: Wealth Distribution Data


