Two Americas: Rich Get Richer, Poor Get Left Behind

The U. S. economy is splitting in two. On one side, the wealthy are enjoying record profits and soaring stock prices. On the other, millions of Americans are struggling to make ends meet. The holiday season of 2025 highlighted this divide. While online sales hit $11. 8 billion on Black Friday, many families had to cut back on gifts due to rising costs. The average price of holiday gifts increased by 26%, forcing 41% of consumers to buy fewer presents. In New York, one in four people live in poverty, double the national average. This economic split is often called a "K-shaped" recovery. The wealthy are seeing their wealth grow, while the working class is struggling. The tax cuts for corporations and the rich, known as the Big and Beautiful Act, have made this divide even wider. These tax cuts are paid for by reducing funding for social services that millions of Americans rely on. The situation is getting worse. Millions of Americans are losing their health insurance because the Affordable Care Act's tax credits expired at the end of 2025. At the same time, cuts to the food stamps program are making it harder for low-income households to afford food during the winter.Tariffs are also adding to the burden. The average household now pays about $2, 400 more each year because of these new tariffs. For many low-income families, this extra cost is a significant hardship. Big companies are taking over smaller ones, reducing competition and giving them more power to set lower wages. In many communities, one major firm controls the economic infrastructure, leaving workers with few options. This lack of competition means workers have little leverage when negotiating salaries and benefits. The job market is also showing signs of this divide. In November and December 2025, large companies created 90, 000 jobs, while small businesses with fewer than 50 employees laid off 120, 000 workers. Since most private sector jobs are in small businesses, this trend is creating "job deserts" in many communities. The wealth gap is widening. Those who own assets like real estate and stocks are seeing their wealth grow, while those who rely on wages are seeing their purchasing power shrink. As 2026 begins, Americans are facing a deepening economic rift. The system is benefiting fewer and fewer people, and the gap between the rich and the poor is growing wider.