Mon Jan 19 16:51:42 UTC 2026: ### US Economy Shows Growth, But Inequality Deepens Under Trump’s Policies

The Story:
Despite President Donald Trump’s controversial policies, the US economy has shown surprising resilience, with healthy growth and low unemployment. However, experts warn that the stock market boom is masking deeper problems, primarily a widening gap between the wealthy and the working class. Trump’s tariffs have not caused the predicted economic meltdown, but have disproportionately impacted smaller businesses. Mass deportations and stricter immigration policies are leading to labor shortages in key sectors, exacerbating the uneven economic growth.

Key Points:

  • US economy is growing at 4.3 percent GDP in the third quarter of 2025, the fastest in two years.
  • Unemployment remains low at 4.4 percent in the last month.
  • Inflation is at 2.7 percent in December.
  • Stock market has risen nearly 30 percent since April 2, benefiting primarily the “magnificent seven” tech companies and higher-income earners.
  • Top 10 percent of earners account for roughly half of all spending, the highest proportion since 1989.
  • Retail, manufacturing, and construction sectors, reliant on migrant workers, are shedding jobs.
  • US experienced negative net migration last year, partly due to mass deportations and stricter immigration.
  • Smaller companies are disproportionately affected by policy uncertainty and tariffs.
  • Concerns about “jobless growth” arise due to AI’s potential impact on the labor market.

Key Takeaways:

  • Uneven Growth: The US economy exhibits a significant divide, with wealth concentrated at the top while key sectors struggle with labor shortages.
  • Policy Impact: Trump’s policies, while not causing a full-blown economic crisis, have contributed to the widening inequality and sector-specific challenges.
  • AI Disruption: The rise of AI poses a potential threat to the labor market, potentially leading to jobless growth.
  • Fragile Stability: The stock market boom masks underlying economic problems and vulnerabilities.
  • Migration Matters: Immigration policies directly influence the workforce and economic performance in specific sectors.

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