The FT Reported On The "political Divide" In The U.S. Under Trump

The U.S. president's policies have resulted in a widening of the income gap between corporations and ordinary workers.

During Donald Trump’s second presidential term , U.S. corporate profits reached a record high, while workers’ wages fell to a historic low, sparking discontent among many Americans and, as a result, “political division” in the country. This is reported by The Financial Times reports, citing data from the Bureau of Economic Analysis.

According to the Bureau of Economic Analysis, U.S. companies posted record pre-tax profits in the second quarter—$4.8 trillion on an annualized basis. This represents 18% of total national income, the highest level since World War II, the FT reports. At the same time, the share of workers’ wages and benefits fell to 60%—the lowest level since the 1950s.

Salaries for CEOs of the largest companies with low wages rose by 41% between 2019 and 2025, while the median worker’s pay increased by 21%—which is 26 percentage points below the rate of inflation, the FT reports.

As the newspaper notes, corporate superprofits are exacerbating inequality, as the main benefits go to wealthy Americans living off investment income, while middle- and low-income households depend on wages. Inflation has also begun to outpace wage growth—real hourly wages fell by 0.2% year-over-year in July.

“The growth seen at the top is far, far, far outpacing growth—if there is any at all—among the lower classes. Today we see that there are two separate economies: one for people whose primary income comes from investments and passive income... and another for ordinary workers who toil day in and day out,” said Elizabeth Pancotti, vice president for policy at the think tank Groundwork Collaborative.

Trump implemented a massive tax cut that primarily benefited corporations and wealthy Americans, while simultaneously slashing assistance programs, including food stamps. The growing gap between corporations and their investors, on the one hand, and low-income Americans, on the other, is provoking an increasingly strong reaction from voters, deepening the country’s political divide, the FT reports.

Rising inequality has sparked a wave of populism in American politics. Republicans and Democrats have increasingly turned to populist rhetoric, the “Democratic Socialists of America” have ousted moderate candidates in the primaries, and in New York, Zohran Mamdani—who has criticized “corporate greed”—became mayor, the FT reports. Vice President J.D. Vance called for greater worker participation in corporate decision-making, while Trump himself accused companies of “speculation” and “price gouging.”

The Washington Post (WP) reported in August that, against the backdrop of persistent 3.4% inflation and high prices, Americans have become more cautious about spending. Consumer activity remains stable overall, but families are increasingly looking for discounts, choosing cheaper goods, and cutting back on some expensive services, the newspaper noted. Mark Zandi, chief economist at Moody’s Analytics, noted that overall consumer metrics are largely being propped up by affluent Americans who are benefiting from the stock market’s rise. At the same time, the country’s less affluent residents are facing increasing financial difficulties.

A year ago, Trump signed the “Big Beautiful Bill” (BBB), which, among other things, provided for the extension of tax cuts introduced by Trump in 2018: a reduction in the corporate tax rate from 35% to 21% and a cap on the top income tax rate at 37% instead of 39.6% for married couples with taxable income exceeding $600,000.

However, as the FT noted, Trump’s tax bill exacerbated inequality, as the poorest households lost more while the wealthy gained more. As a result, the newspaper wrote, the “K-shaped economy” model gained momentum in the country. This model describes the divergence in the development trajectories of different social groups following the crisis.

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