Despite the highly touted President Donald Trump tax cuts, which some people believe disproportionally affected top earners and businesses, the majority of Americans report that their finances haven’t improved at all.
The near-daily reports of the extraordinarily strong the United States economy and record low unemployment levels haven’t necessarily translated into most Americans doing better money-wise. According to a report from the Observer, recently 60 percent of those in the U.S. said that they hadn’t experienced an improved financial situation since Trump took office in 2016.
The finance site Bankrate asked survey participants during the last week of September “Compared with two years ago, is your personal financial situation better, worse or about the same?” Forty-five percent of those who answered said their situation is the same while 17 percent admitted they are worse off and 38 percent reported that they experienced improved finances.
Since that question, the market dropped sharply and lost nearly all of its year to date gains, which further dampens the finances of many in the U.S. According to Forbes, this type of market correction is normal and healthy especially for October, which is historically a volatile month. For now, the losses are no cause for great concern that the economy is sinking. However, a large portion of citizens simply hasn’t experienced an increase in income despite the overall positive economic news in the U.S., but that divide split among party lines, too.
Only 38% of Americans (white, higher-income earners) say they're better off financially under Trump
17% are worse off.
45% are the same.https://t.co/2FN58CQCrI
— Hayden Black (@haydenblack) October 24, 2018
In the survey report, Mark Mamrick, a senior economic analyst at Bankrate wrote, “Ultimately, a rising economic tide lifts many boats. [But] it does not lift all of them. The economy is paying dividends for many Americans, but there are still many people and pockets of the U.S. economy that are hoping for those dividends to appear.”
Among Democrats who responded, 23 percent reported a decline while 48 percent said their finances remained the same. As for Republicans, a mere nine percent indicated they’re doing worse while 32 percent stayed the same as they were before Trump took office.
Diane Swonk, a chief economist of financial advisory firm Grant Thornton, commented about the partisan divide among respondents. She said, “We have a weird tribalism going on. We saw the polarization pick up in the 2000 election, and it’s just accelerated.”
The discrepancy in reports of financial well-being change, even more, when looking at the income level of those who answered the Bankrate survey. A majority, 54 percent, of Americans who make more than $75,000 annually reported they’re doing better than they were two years ago, according to the Motley Fool. However, a mere 21 percent of people in the $30,000 income level said they experienced any improvement financially since Trump’s election.