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The article sheds light on a long-running debate between millennials and baby boomers about why younger generations are struggling with money. While some boomers blame things like expensive coffee and new phones, a 36-year-old millennial uses data to show that the real problem is the rising cost of basic needs. In 1980, it was much easier to afford things like a home, college tuition, and doctor visits because prices were lower compared to what people earned. Today, those same essentials cost much more, but wages haven’t kept up. For example, the average home now costs over five times what a typical household makes in a year. This means that people today have to spend a much bigger share of their income on just getting by, making it harder to save money or build wealth like previous generations did.

As of mid-2025, the U.S. economy is showing signs of trouble under President Donald Trump’s leadership. Job growth has slowed down, meaning fewer people are being hired each month, while inflation is rising, making everyday goods and services more expensive. These problems are leading many experts to worry that the economy could be heading toward a recession. At the same time, the Trump administration is pressuring the Federal Reserve to cut interest rates to boost the economy, but the Fed has chosen to keep rates steady. This has led to tension between the government and the Fed, adding to the uncertainty in the financial markets.

Wealth inequality in the United States is having a big impact on how people spend money and live their daily lives. The richest 10% of Americans now account for 50% of all consumer spending, which means their choices heavily influence the products and services businesses offer. While the majority of Americans—the bottom 80%—have increased their spending by 25% in the past four years, that barely keeps up with inflation, which has gone up by 21%. On the other hand, the top 10% increased their spending by 58%, widening the gap between rich and average Americans. As more money flows toward luxury goods and expensive services, businesses are shifting their focus to meet the demands of wealthier buyers. This trend raises concerns among economists, as it could make it even harder for everyday families to keep up and be part of a balanced economy.

In August 2025, many Americans are feeling the strain of rising prices, especially when it comes to everyday essentials like food, gas, and healthcare. This is largely due to ongoing inflation and new tariffs that have made goods more expensive. The Federal Reserve, led by Chair Jerome Powell, is being cautious about making interest rate cuts, saying they’ll wait until inflation drops closer to their 2% goal. While some progress has been made, the chance of a rate cut happening soon has decreased. As a result, people are uncertain about what’s coming next for the economy, especially with talk of a possible recession still in the air.