Stock Prices Boost US Economy Amid Rising Inequality and Inflation Concerns in 2025
The S&P 500 has increased approximately 86% over the past five years, reaching record highs driven by the AI boom. However, wealth concentration in stocks remains extreme, with the top 1% owning about 50%, the top 10% about 87.2%, and the bottom 50% holding only about 1.1%.
Inflation rates rose from 2.3% in April 2025 to 3% in September 2025, while unemployment increased from 4% in January to 4.4% in September 2025. The Yale Budget Lab estimates that the Trump administration's tariffs will cause a 1.2% short-term price increase, costing the average household approximately $1,700.
Poverty in New York City stands at approximately 25% in 2025, significantly higher than the national average of about 13%. Cuts to anti-poverty programs under the Trump administration have contributed to increasing hardship for lower-income residents.
The economy has been described as "K-shaped," reflecting divergent experiences among different income groups. Luxury retailers such as Printemps in Manhattan have prospered, catering to premium spending with offerings like a $600 fur coat and $1,450 leather tabi boots. Printemps NYC opened with a grand event on March 21, 2025, featuring a luxury experience that included an ice rink, bar, and champagne cart. High-end brands and premium products drove growth for companies like Delta, Coca-Cola, and McDonald’s, while lower-income consumers continue to face economic pressures.
Public opinion data highlights the perceived impact of the Trump administration on economic conditions. Inflation-related approval ratings initially rose to +5% after the inauguration but declined to -35% by November 2, 2025.
