This is PART FIVE in a series of posts on the state of the US economy. You can read PART ONE, PART TWO, PART THREE and PART FOUR, if you’d like to catch up.
I hope you have found the series a helpful mix of numbers, political implications, and potential impacts for American families. Above all, I hope you have not found it too overwhelming so far, particularly with the sometimes confusing numbers and other details. There’s no escaping the fact that economics is not the sexiest of subjects. Still, a basic understanding is fundamental when considering how to mitigate the negative impact of Trump’s damaging economic agenda.
I want to begin today with an important reference point. Taxes, however much we dislike them, are the foundation on which society operates. Regardless of where your political allegiance lies, there is a grudging acceptance that taxes are a necessity for a society to function. What governments have done over the years is what governments always do: overpromise and underdeliver. They live in this strange fantasy world where they believe they can finance infrastructure and services for a growing population on the same level of funding as a decade, or in the case of Republicans, a century ago.
We need to work from the simple principle that this is impossible, that math doesn’t work. In a free market economy, for which the US is the poster child, there exists the flawed assumption that if you give the bulk of the wealth to the already obscenely rich, their benevolence will provide a sort of private benefits system for everyone else. Just pause to think about that for a moment, then tell me when you’ve stopped laughing, we’ll continue, because that’s how ludicrous the system is. It’s the old, ‘We know what’s best for you’ theory from the Reagan days.
We will explore MAGA tax starvation in more detail in the next post. In the meantime, let’s begin with some baseline figures. Statistics show that the top 50% of US society owns 98% of the wealth as of Q2 2025 ($163 trillion), while the bottom 50% are forced to exist on 2%, which amounts to $4.7 trillion. To see how this has changed over the years, feel free to go to the Fed Website to look at the Distribution of Household Wealth in the U.S. since 1989
In 1989, the top 50% owned 96.35% ($19.72), while the bottom 50% owned 3.65% ($720 billion). From this point on, you see consistent growth for the top 50% (aside from the 2008 crash), while the bottom 50% has seen its share almost halved by 2025. It’s essential to note that the gap has widened over the decades, regardless of which party was in the White House.
As a litmus test, take 2001, which was the end of the alleged economic golden era for Democrats under Clinton. His administration, despite having what was regarded as the most successful economy in modern times, saw a decline in the bottom 50% share of wealth, dropping from 3.65% to 3.07%. The gap continued to widen to this day, with the bottom 50% now owning just 2% of the wealth, representing a 30% decrease from the end of the Clinton administration.
What is truly fascinating and points to why economics is such a complex field is that, by any measure, when Clinton left office, he left behind the strongest US economy in half a century. It is still regarded as the golden age of the US economy, and these claims are not without merit. As noted in the National Archives:
In 1992, 10 million Americans were unemployed, the country faced record deficits, and poverty and welfare rolls were growing. Family incomes were losing ground to inflation, and jobs were being created at the slowest rate since the Great Depression.
By the time he left office, growth had averaged 4% compared to 2.8% during the Reagan presidency. He created 22 million jobs, which remains the highest on record, and 92% of these jobs were in the private sector. Unemployment dropped from 6.9 per cent in 1993 to just 4.0 per cent, and inflation averaged 2.5 per cent, down from 4.7 per cent in the Reagan administration. He reduced the poverty rate from 15.1% in 1993 to 11.8%, which was the most significant six-year drop in poverty in 30 years. Add to that a $237 billion surplus, and it is widely regarded as a stellar economic performance. Indeed, one which recent presidents would die for, other than Trump, of course, who couldn’t give a damn, as long as his own pockets are overflowing.
We can’t, of course, live in the past, but there is one crucial point that is often overlooked, which was highlighted in my earlier point: under Clinton, the bottom 50% have seen a 30% decrease in the wealth they held. It begs the question that, given the economic tailwind he built during his term, why did he fail to address the wealth gap? This is where we begin to see the divergence of the Democratic policy agenda, moving towards what was described in a recent book by Nelson Lichtenstein and Judith Stein as "The Fabulous Fail”.
In the book, the authors spare no mercy in their criticism of his administration, blaming Clinton primarily for the economic inequality that followed, as well as the rise of monopolistic corporations, the subsequent Great Financial Crisis, the rise of China, and the advent of Trumpism. I’m not sure they’re big fans. I’m intrigued enough, though, to have bought the book today and look forward to adding it to my knowledge base for future commentary. It simply caught my eye because of my observation that this seems to have been the inflexion point at which Democrats started their audition to become Republican lite. The failure to significantly address the wealth gap is a big red flag.
As for the shift to favour a global economy, that’s a much more difficult choice to criticise, because we are now living through what American isolationism looks like. I’m sure Robert Reich, who was in that administration, will no doubt have an opinion on the matter. The key point I’m trying to make, along with Robert (with whom I know I have many crossover readers) and the progressive elements of the Democratic Party, is that never, and I genuinely mean never, has there been a better opportunity to sell a more progressive, people-first message to voters than in this moment. Yet tragically, we hear that progressive candidate Gary Platner, who is running against Susan Collins in Maine, is now facing a new challenge from Schumer-backed Governor Janet Mills.
Democrats can’t help themselves with this stupid ‘tried and tested’ argument to preserve the ‘same old same old’. It absolutely infuriates me. They get handed one of the most exciting people-first candidates in politics today, who can speak to MAGA, and they decide Platner is the enemy. I am incandescent with rage, and it lines up with all my research that says Democrats CAN’T WIN with a Republican light proposition, and their political self-preservation agenda. Jesus, what will it take to wake these idiots up?
There is absolutely no appetite for what Schumer and the Democratic leadership are selling, as is clearly evident in the polls. They have no message, no vision, and no ambition, and the public is done with the same old jam tomorrow promises.
I digress, but it’s all part of my assessment that for Trump to be defeated, and not just lose because voters are registering a protest vote by voting Democrat, there has to be a new people-centred proposition, and that is tragically nowhere in sight. Indeed, it appears leadership is squarely rejecting it with their move against Platner. I so want to scream right now. There has never been a more critical moment in American history for an opposition party to OPPOSE FFS. Yet, here we are in a shutdown that Schumer only went along with because he fears a primary challenge from AOC. It truly sickens me. Democrats have a stellar bench of political lions, but they are being led by donkeys, and that’s unconscionable. How can you help a party that won’t help itself?
Trump is drowning under almost $38 trillion of debt, with a dollar that is worth 11% less than it was at the beginning of the year. This marks its most significant loss in value since 1973. Job numbers are catastrophic, and tariffs are now starting to impact consumers significantly. In addition to rising costs of basic consumer items and groceries, they are about to face skyrocketing healthcare insurance premium costs. How much of an open goal do Democrats need? It is beyond infuriating to me that leadership is just happy to sit back and wait for Trump to fail. It’s a disgusting betrayal of the American people, who have every right to punish them at the ballot box, but won’t because they hate what Trump is doing more. What an absolute indictment of failed leadership.
You’ll have to excuse my rant, but someone has to say it. It’s time for Dems to step up, bin the dark money and represent the people, not their corporate benefactors. This is an existential fight for the preservation of democracy and American values. It’s time for a political revolution, but that can’t happen until the Democrats grow a pair, gather some self-respect, and show some appreciation for an activist base that is desperate for a fight to win back the soul of America. I believe in them because they have become my brothers and sisters over the last 7 years. They, like I, are prepared to die on the hill of representative democracy, moral decency and political integrity. There sadly is no place on this battlefield for weak and ineffective leadership.
There are 90 million Americans who didn’t vote in November. You might want to read the piece I have linked below to check out my thoughts on it.
The true silent majority are not even on the field of play.
I want to set the shutdown aside for a moment to take a breath and look beyond our current situation, because there is often talk about the country being split in two. That’s what we have now accepted as the norm. Half vote Republican and half vote Democrat, and the margin in every election is narrow, which means nobody can govern as a government should…
Trump won the election with the votes of just 32% of eligible voters, to go on to deliver a tyranny that will likely take a generation to recover from. I can’t comprehend why, a year out from midterm elections, Republicans are dominating the narrative and are three steps ahead of Democrats at every twist and turn.
On Saturday, millions of Americans are set to take to the streets at significant risk to their personal safety. My words of caution to said Americans have been met with wide defiance, which warms my very soul. I am inspired by their sense of collective outrage and willingness to put their lives on the line to fight tyranny; they are showing a sense of collective leadership that is sadly lacking in far too many of those they elected to represent them.
The administration is currently in a blind panic as they are set to lose control of the narrative over the weekend. There is already a campaign underway to paint all protesters as ANTIFA terrorists as Stephen Miller and friends seek justification to crush dissent. It’s being labelled a ‘Hate America March’, allegedly bringing together radical left Hamas-supporting domestic terrorists. This is a deliberate, egregious, and totally irresponsible and dangerous lie, but it’s no more than we have come to expect from a cabal of authoritarian miscreants.
This is NOT a left-wing protest; it’s a big-tent protest that welcomes people from across the entire political spectrum. NEVER FORGET, Trump was elected by just 32% of eligible voters. No King’s Day represents an opportunity not only for those who voted against Trump, but also for those who did vote for him and now realise they made a mistake to have their voices heard. More importantly, it’s an opportunity for the 90 million Americans who didn’t vote last November, many of whom have come to understand that silence is not the answer to tyranny, to have their say too.
Every protester needs to understand that, as I have previously stated, there is a heightened risk that those policing the events will do so aggressively. There is also no question that there will be agitators hellbent on causing violence to provide an excuse for a heavy-handed military intervention, and I’m also not ruling out that Trump might even invoke the Insurrection Act before the event.
I want to take a moment to give a big shout-out to Indivisible and all the No Kings Coalition members who have invested a tremendous amount of time and effort into planning over 2,500 events on October 18th across the country and internationally, providing de-escalation training and support to protesters. They have taken care to create an environment not of hostility, but peaceful protest, just as that spirit drove the Civil Rights Movement. This is not a political protest; it’s a societal response to lies, open warfare on those who refute political violence, racism, homophobia, misogyny, cruelty and division.
This is the collective voice of millions who believe America deserves better and want to celebrate the sacrifices made by patriots who gave their lives so that we might enjoy the freedoms that this government is intent on suffocating.
I’ll leave you today with two thoughts from the late great John Lewis
“You are a light. You are the light. Never let anyone — any person or any force — dampen, dim or diminish your light … Release the need to hate, to harbor division, and the enticement of revenge. Release all bitterness. Hold only love, only peace in your heart, knowing that the battle of good to overcome evil is already won.”
“Take a long, hard look down the road you will have to travel once you have made a commitment to work for change. Know that this transformation will not happen right away. Change often takes time. It rarely happens all at once. In the movement, we didn’t know how history would play itself out. When we were getting arrested and waiting in jail or standing in unmovable lines on the courthouse steps, we didn’t know what would happen, but we knew it had to happen.”
I want everyone participating in an event on No King’s Day to embrace these words from a man who knew the importance of struggle and the need for focused determination in the face of what, at times, seemed insurmountable challenges. As you prepare to risk your safety for the greater good, you are the hope that John so often spoke of when he spoke of the future and the eternal struggle for a better tomorrow.
I made this short film in 2022, following the passing of John. May those marching honour his words and his memory on Saturday as they go in search of what Martin Luther King Jr. called ‘The beloved community”
I had expected to wrap up my economics assessment today, but we got sidetracked for good reason, so I’ll pick that up next time.
Wow, just wow, what a brilliant piece this was to read. A thousand thanks for your well written words and the courage to write them.
Be well. 🙏🙏🙏
Agree with your assessment. Schumer cannot read the room.