On August 18, the Trump Administration released an Article to the Official White House Website entitled ‘Trump Economy Ignites Record-Breaking Earnings Surge, Market Boom’ in which the Administration stated “Under President Donald J. Trump’s bold pro-growth policies, American businesses are thriving like never before — shattering earnings forecasts and propelling the stock market to continued record highs.”

While it is true that in recent weeks the Stock Markets have seen earnings per share values rise, at the same time, it is also true that everyday American consumers are feeling more wary of what is to come.

The University of Michigan consumer sentiment survey showed that “the US dropped to 58.6 in August 2025, down from 61.7 in July and well below market expectations of 62, according to preliminary estimates.”

This means that Consumer sentiment has reversed its course and fallen for the first time in four months.

The University of Michigan notes that the sentiment drop was “mainly due to growing inflation concerns and sharply worse buying conditions for durable goods…consumers still anticipate worsening inflation and unemployment ahead.”

With ongoing tariff chaos, sentiment regarding inflation expectations surged to 4.9% from 4.5% and the five-year expectations gauge edged up to 3.9% from 3.4%. 

While the Administration focuses on the Stock market, every day, families – especially low-income families are dreading what is to come. And many of them are not reaping the benefits of the increased stock prices.

About 162 million Americans, or 62% of U.S. adults, own stock. However, the top 1% holds 50% of stocks, worth $23 trillion. Meaning it is not a level playing field.

Those not invested in the stock market don’t see any of the gains and yet still face the burden of higher prices and weakened purchasing power. At the same time, the 1% and corporations see unprecedented growth.

Ultimately, the consumer will determine whether continued growth will occur. If the consumer starts pulling back, earnings will start to fall, and then both consumer sentiment and the stock market will decline.