EPI Report Warns Trump Economic Agenda Will Deepen Household Inequality

Bivens highlights that the administration’s strategy is already creating tangible friction in the labor market. While a full-scale recession remains avoidable, the data shows 1.4 million fewer jobs than projected for 2025, with unemployment rising to 4.4% from a 2023 low of 3.4%. For the lowest-earning 10% of the population, real wages have declined by 0.3% over the past year, reversing gains made during the previous administration.

At the center of this downturn is the "One Big Beautiful Bill Act," a budget package that slashes $100 billion annually from Medicaid and SNAP. By allowing critical health insurance subsidies to expire, the policy forces families to reduce essential spending. Although the law includes tax cuts, the report finds that the vast majority of these benefits accrue to the wealthiest earners, who were already shielded from financial volatility.

This shift is projected to accelerate wealth concentration at an unprecedented pace. While the top decile’s share of income grew by roughly 0.25% annually between 1979 and 2019, the new budget law is expected to increase that share by a full percentage point in just one year. Bivens warns that by undermining collective bargaining rights and fueling inflation through erratic trade policies, the administration is doubling down on structural choices that prioritize short-term gains for the wealthy while diminishing the purchasing power of typical households.