Cap Puckhaber, Reno, Nevada
As we approach the second quarter of 2025, many Americans are expressing concerns with the economy since the election. They are increasingly worried despite historically low unemployment and a robust job market. The Biden administration was making efforts to bring down interest rates. However, some of these voters feel that the economy is not performing as well as they had hoped. This shift in sentiment raises the question: what has changed since the election, and why are these voters now more uneasy about the economic situation?
The Lingering Impact of Inflation
One of the most significant factors influencing public perception of the economy since 2020 is the persistent issue of inflation. After the pandemic, inflation began climbing sharply. It was fueled by factors such as supply chain disruptions, rising energy prices, and global events like the war in Ukraine. While inflation showed signs of slowing down in 2023, it remains a substantial concern for many Americans, especially those in lower- and middle-income brackets.
For voters, the surge in prices for everyday necessities such as food, fuel, and housing has been a painful reality. This is especially true for those who were already struggling financially. The Biden administration introduced relief measures like the American Rescue Plan to stimulate the economy. Meanwhile, many former Trump supporters are beginning to question whether these measures inadvertently contributed to inflationary pressures and the overall economy since the election. The relief efforts may have helped some individuals in the short term, but for many others, inflation has eroded their purchasing power, leaving them feeling that the benefits of economic recovery haven’t been as widespread as expected.
Rising Interest Rates and Increased Borrowing Costs
In response to inflation, the Federal Reserve raised interest rates multiple times beginning in 2022. While these rate hikes were necessary to combat inflation, they have also increased the cost of borrowing. As a result, mortgage rates, auto loan rates, and credit card interest rates have surged, creating financial strain for consumers.
For many Americans who enjoyed historically low interest rates during the Trump years—when the Federal Reserve kept rates near zero—the rising cost of borrowing has been particularly difficult to absorb. One of the most visible effects of this shift has been on the housing market. High mortgage rates have cooled demand, making homeownership increasingly out of reach for many would-be buyers. As inflation continues to eat into household budgets, the added burden of higher borrowing costs is pushing many Americans deeper into financial strain.
Stock Market Volatility and Economic Uncertainty
Another factor contributing to growing discontent among former Trump supporters is the recent volatility in the stock market. Under Trump’s presidency, the stock market performed strongly, and many Americans, especially those with retirement savings tied to the market, felt more financially secure. However, the market has experienced significant downturns in 2022 and 2023, driven by inflation concerns, interest rate hikes, and global economic instability. These downturns have led many to feel a sense of economic instability, despite the low unemployment rate.
While there has been some recovery in the stock market, the volatility and occasional losses have shaken confidence. For those who saw the stock market as a barometer of economic health, these fluctuations have added to a growing sense of unease. The combination of rising borrowing costs, inflation, and unpredictable stock market movements has left many Americans feeling uncertain about the future of the economy.
The Growing Divide: Corporate Profits vs. Worker Struggles
The growing disparity between corporate profits and the financial struggles of everyday workers is another factor that contributes to the shift in perspective. Large corporations have posted record profits in recent years. Many Americans are feeling the pinch of stagnant wages. They also face high living costs and job insecurity. The economic recovery has not been felt equally across the population, and many former Trump supporters are frustrated by this inequality.
For those who supported Trump’s pro-business policies, it can be disheartening to see large corporations continue to thrive. Workers are struggling to make ends meet. Many of these voters feel that the economic recovery has disproportionately benefited corporate giants, while smaller businesses and individual workers have not seen the same gains. They perceive Biden’s policies as favoring large corporations over workers and small businesses, further fueling concerns about economic inequality.
The Disconnect Between Promises and Realities
When Biden took office, he inherited an economy still recovering from the effects of the pandemic. His administration made ambitious promises of economic recovery, and by 2022, unemployment had reached historically low levels. However, the realities of inflation, rising interest rates, and continued global instability have complicated those recovery efforts.
For many former Trump supporters, the economic policies put in place by Biden have not lived up to expectations. While the job market has remained strong, the pain of rising inflation and expensive borrowing has overshadowed those achievements. Some of these voters feel that Biden’s policies were either too slow to address the challenges at hand or insufficient to offset the impact of inflation and rising costs. The disconnect between the administration’s promises and the realities of everyday economic struggles has left many feeling disillusioned.
Conclusion: Navigating an Uncertain Economy
As we look ahead to 2025, many Americans are re-evaluating their views on the economy. This is especially true for those who supported Trump in the 2020 election. Despite some successes, such as low unemployment and job growth, rising inflation, higher interest rates, and continued economic volatility have left many questioning the long-term stability of the economy. For those already feeling the financial strain of rising costs and borrowing expenses, the economic recovery feels distant and incomplete.
The challenge for policymakers is to address the concerns of those who feel left behind. These individuals are affected by the current economic environment. Restoring confidence among voters who are concerned about their financial futures will require efforts to tackle inflation. It will also require stabilizing the housing market and reducing the disparity between corporate profits and worker wages. As these economic issues persist, the administration must balance growth and stability. This balance will ensure that all Americans feel the benefits of recovery. The road ahead is uncertain, but it is clear that the economy remains a critical issue for many voters as we approach the next election cycle.
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