Economic Disparities in the Lead-up to Midterm Elections

The midterm elections are approaching, where American voters will determine the control of the House and Senate. This decision will impact whether President Trump’s party or Democratic opponents gain power. For many Americans, this election revolves around the cost of living. Inflation increased by 0.6% in September, rising 3.7% over the year, with half attributed to energy costs. Wholesale inflation rose by 1.3%, reaching its highest since December 2022. The housing market is also affected, with home sales at their lowest since 2014, as prices remain prohibitive for many.

President Trump describes this period as the “Golden Age of America,” yet many struggle with rising living costs and stagnant wages. Key expenses have dramatically increased: home prices by 60%, rent by 33%, groceries by 32%, electricity by 46%, gas by 69%, and health care by 20%. These essential expenses leave Americans financially strained.

While average net worth for American families grew by only 2% from 2022 to 2025, the wealthiest and oldest Americans saw their net worth grow by over 30%. Those aged 75 and older experienced a 37% increase, while individuals under 35 saw a 23% decrease. Specifically, the median net worth for the oldest households rose from $366,000 to over $500,000 in three years. Meanwhile, the net worth of those under 35 declined from $42,000 to $32,000. Young adults are also burdened with significant debt compared to Boomers.

A Bank of America Institute analysis reveals Americans 55 and older hold $140 trillion, representing three-quarters of the nation’s net worth while comprising less than one-third of the population. However, not all older Americans are prosperous; one-third of Boomers have no retirement savings. The top 10% control 71% of Boomer wealth, masking the broader economic issues. This affluent segment accounts for over half of consumer spending.

The housing market is further affected by Boomers occupying homes, causing shortages for millennials. Empty-nest Boomers reside in 30% of large homes, nearly double the rate for millennial families with children. A cost of living adjustment set for 2027 will further increase the average retiree’s Social Security benefits by $900 annually.

The economy channels wealth from the struggling young to the secure elderly, with younger individuals supporting existing social security systems without assurance of future benefits. Young families face medical debt while funding Medicare for wealthier seniors. This situation contributes to growing interest in socialism among younger generations.

Neither political party offers a clear solution to these economic challenges. The Democrats aim to reduce energy costs by banning fossil fuels and propose changes to health care that may still burden consumers. The Republicans, under Trump, lack a comprehensive plan and often dismiss the affordability crisis as exaggerated.

To succeed in future elections, politicians must address the disparities that force those with less to support those with substantial wealth. This acknowledgment is crucial for politicians looking toward 2026 and beyond.