Tue Dec 30 23:55:14 UTC 2025: Summary:

Despite robust GDP growth fueled by AI investments, the US economy in late 2025 presents a mixed picture. While the economy outperforms its peers, consumer sentiment remains low due to a widening wealth gap. A significant portion of growth is attributed to a few tech giants, raising concerns about the sustainability of this trend. Increased tariffs have yet to fully impact living costs, but experts are divided on future inflation. Unemployment is also on the rise, challenging President Trump’s economic promises.

News Article:

US Economy Booming, But Wealth Gap Fuels Pessimism

Washington D.C. – The United States economy is outpacing its global counterparts, boasting a strong 4.3% annualized GDP growth in the third quarter of 2025. This surge is largely driven by substantial investments in artificial intelligence, particularly by tech giants like Microsoft, Amazon, and Alphabet. However, this growth is not translating into widespread economic optimism, with consumer sentiment remaining near record lows.

Experts point to a growing divide between wealthy and poorer Americans as the primary cause. The top 10% of earners now account for half of all spending, a level not seen since 1989. While the stock market is performing well, benefiting disproportionately wealthier households. This disparity fuels concerns that the economic benefits are not reaching all Americans.

“Many believe that the US is stuck in the 2 percent real GDP growth regime. The third quarter showed that higher growth is possible. I think many are too pessimistic. We need more ambition,” said economist Campbell Harvey from Duke University.

President Trump’s tariffs, while intended to bolster domestic manufacturing, have so far had a muted impact on inflation. However, some economists warn that the full effects are yet to be felt.

Unemployment has risen steadily since the beginning of Trump’s second term, reaching a four-year high of 4.6% in November, despite his pledges to restore the manufacturing sector.

The economic outlook for 2026 remains uncertain, with concerns about the sustainability of AI-driven growth and the potential impact of tariffs on consumer prices. The widening wealth gap and rising unemployment pose significant challenges to overall economic well-being.

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