The U.S. economy, characterized by Reuters as "overstimulated" with "fiscal largesse, loose financial conditions, booming business investment and near-zero real interest rates," fuels bond market fears while working people grapple with escalating costs. President Donald Trump arrived in California this week, not to address the widespread economic precarity, but to speak at a fundraising dinner for the Republican National Committee at a golf club his family owns in Rancho Palos Verdes. He will discuss the economy at a Las Vegas casino on Wednesday.
Who Pays, Who Profits
Despite stock market gains and a low national unemployment rate often cited by the president, working people report a different reality. An AP-NORC poll conducted in late July revealed only 32% of U.S. adults approved of Trump’s handling of the economy. A staggering 69% characterized the state of the economy as “poor,” with many identifying the cost of everyday essentials like groceries and gas as a “major” source of stress in their lives. This widespread economic anxiety persists even as capital enjoys booming investment and near-zero real interest rates.
White House spokesperson Olivia Wales stated the president plans to “draw a sharp contrast between his commonsense agenda and the radical policies of Democrats like Gavin Newsom.” Trump's agenda centers on efforts to cut taxes, reduce what he terms “fraud” in government programs, and intensify crackdowns on immigration and crime. These policies consistently serve to concentrate wealth upward through tax relief for the owning class, while simultaneously eroding public services and suppressing labor through increased state control over immigrant workers.
California Governor Gavin Newsom’s press office criticized Trump, stating he traveled to California not to aid wildfire survivors but to raise money and attack the state with “lies.” Newsom demanded Trump fulfill a promise made 1 year and 7 months ago to “take care of Los Angeles,” where thousands were left homeless after wildfires. Yet, even as Newsom boasts of California as the “world’s fourth-largest economy,” the structural issues of housing and economic insecurity for its working class remain unaddressed by liberal governance.
The State's Iron Fist
Trump’s first domestic stop after returning to office 1 year and 7 months ago was to survey the aftermath of those devastating Los Angeles County wildfires. However, the initial comity between Trump and Newsom quickly dissolved. Six months later, Newsom declared “democracy is under assault” after the president deployed National Guard troops and U.S. Marines into Los Angeles without the governor’s consent. This military deployment followed protests sparked by a series of federal immigration raids, illustrating the state’s readiness to use force to suppress dissent and control labor.
Nevada, Trump’s next stop, faces its own set of contradictions. The state grapples with a severe shortage of affordable housing, a crisis exacerbated by exploding energy demand from artificial intelligence data centers. These centers represent massive capital investment, yet their expansion directly contributes to higher costs for working families. Federal cuts to key state programs further strip away vital resources, leaving the working class to bear the burden of capital’s unchecked growth.
Trump has spent several months promoting his income tax cuts and claims of a manufacturing renaissance. However, high interest rates, the rising cost of gasoline due to the Iran war, and ongoing tariffs continue to reshape the economy, primarily impacting the purchasing power of working people. The president himself dismissed his own housing bill as a “yawn,” a telling admission of the state’s disinterest in addressing fundamental needs when they do not directly serve capital accumulation. Political narratives, from both major parties, consistently fail to confront the systemic underpinnings of these crises, instead offering symbolic concessions that preserve the existing distribution of power. A Reuters/Ipsos poll shows Democrats hold only a slight edge over Republicans on economic messaging, with 37% of voters preferring Democrats’ approach, indicating widespread dissatisfaction with both factions of the ruling class.