Who's Actually Feeling Good About This Economy? The Short List

Consumer sentiment has tanked for four straight months, hitting near-record lows. Americans report feeling squeezed by high prices, slowing wage growth, and a weakening job market. The stock market's recent retreat from record highs hasn't helped.

But aggregate misery masks serious disparities. Some groups are doing fine — even optimistic. Here's who's bucking the trend, and why the gap matters.

1. Republicans: The Partisan Sentiment Gap Widens
Economic confidence tracks political affiliation more than actual conditions. Republicans, gloomy under Biden, have turned decidedly upbeat since Trump's return. Democrats experienced the reverse pattern. This isn't new — the trend dates to Reagan — but political polarization has made it extreme.

Result: Republicans rate the economy substantially higher than Democrats or independents, despite shared exposure to inflation and labor market conditions. Sentiment is increasingly about whose team holds power, not what's in your wallet.

2. Higher-Income Households: The Cushion Effect
Wealthier Americans feel better because they are better insulated. They spend a smaller share of income on essentials like gas and groceries, leaving more room to absorb price increases.

But middle-income sentiment has dropped 17% since July — worse than either high or low earners. The squeeze is moving up the income ladder, and the gap between top earners and everyone else is widening.

3. Stock Owners: Market Gains Create a Mood Divide
The S&P 500 has posted substantial gains this year, hitting record highs before retreating in recent weeks. Those holding stocks — especially the top 20% of portfolios — feel flush despite the recent pullback. Those without stocks? Worse than they have all year.

Context matters: only 60% of Americans own stocks, typically through retirement accounts. Ownership skews heavily toward higher earners, college graduates, and white households. The wealth effect is real, but it's limited to those already winning.

4. Americans Under 35: Optimism or Insulation?
Younger adults report the highest confidence in two years, bucking the older-cohort trend. Why? Possibly wage growth — workers 16-24 saw 5.9% annual gains versus 4.2% overall. Or maybe it's structural: many still live with parents, rely on family health insurance, or haven't yet absorbed full cost-of-living burdens.

Economists aren't entirely sure. But the optimism gap between under-35s and older Americans is stark.

The Takeaway
Economic sentiment isn't uniform — it's stratified by income, portfolio holdings, age, and increasingly, political identity. The headline number obscures who's actually hurting and who's coasting.

If you're middle-income, stockless, over 35, and not particularly enthused about whoever's president, congratulations: you're the median American, and the data says you're right to feel lousy.

#Economy #ConsumerSentiment #WealthGap #StockMarket #PartisanPolarization #MiddleClass #EconomicData #IncomeInequality

📱 American Оbserver - Stay up to date on all important events 🇺🇸