As the political landscape evolves, the implications of Trump’s ideology and economic policies are becoming increasingly apparent. Initially, many voters preferred Trump over Biden due to concerns about inflation and immigration. However, the situation now reveals a paradox: Trump’s policies seem to be leading the nation into a predicament of stagflation. A modest 25 basis point reduction by the Federal Reserve, despite lackluster job growth, suggests unease regarding inflation prospects. A recent analysis by Wolf Richter highlights this bleak picture:
… inflation in goods was low in August, except in gasoline, food, and used vehicles. The primary source of inflation stemmed from services—housing, insurance, subscriptions, healthcare, etc.—with services constituting two-thirds of consumer spending.
Consumers are particularly responsive to rising costs in essentials such as food and gas, where frequent purchases make price increases painfully obvious.
📈 Electricity 6%
📈 Food. 5%
📈 Shelter 4%2.9%. Reported inflation
*if you average out the 3 things we need on a daily basis the real inflation rate is 5% pic.twitter.com/esRq2jbEb8
— The Coastal Journal (@1CoastalJournal) September 11, 2025
For further information on tariff-affected categories experiencing significant price hikes, please examine this tweet:
The middle-class squeeze from tariffs is here. Inflation hit 2.9% in August, the highest since January and up from 2.3% in April. It’s troubling that so many basic necessities are rising in price again: Food, gas, clothing, and shelter all had big cost jumps in August. And this is… pic.twitter.com/uJrSb8jx2z
— Heather Long (@byHeatherLong) September 11, 2025
Looking ahead to 2026, health insurance price increases are projected to reach alarming levels. A report from Mercer indicates:
The total health benefit cost per employee is estimated to rise by 6.5% on average in 2026—the highest increase since 2010—even after accounting for planned cost-reduction measures. Without cost-cutting actions, average plan costs could increase by nearly 9%.
This marks the fourth consecutive year of elevated health benefit cost growth and has become a call to action for many employers. Survey results show that while many are looking for ways to reduce costs, others are pursuing disruptive strategies to manage cost growth.
Such cost management may compromise quality. For instance, a study by Health System Tracker reported:
Enhanced premium tax credits that make healthcare coverage more affordable will expire at the end of 2025, resulting in an average increase of over 75% in out-of-pocket premium payments. This may lead to a loss of healthier enrollees and a subsequent increase in the risk pool. The expiration of tax credits is predicted to drive up rates further by an additional 4%.
Tariffs could also raise costs for drugs, medical equipment, and supplies, with some insurers linking tariffs to an additional 3% in rate hikes.
For Medicare:
This year, Part B enrollees pay a standard monthly premium of $185, an increase of $10.30 (nearly 5.9%) from $174.70 in 2024. The 2025 Part B annual deductible is $257, a 7% rise from $240 in 2024. Projected for next year, the Part B premium may surge by 11.6% to $206.50.
Additional anecdotal evidence highlights these escalating costs. One commenter noted:
Insurance premiums rarely feature in mainstream media discussions about inflation. However, my premiums have risen 80% in three years. Continuous increases of this magnitude would be catastrophic for our finances. Are others facing such substantial hikes?
On the immigration front, initial voter support for Trump’s policies has shifted into opposition. This change may stem from the harsh realities of implementation, including severe practices such as deporting individuals who hold visas or American citizenship, exemplified by a recent raid at a Hyundai plant.
Polling data starkly illustrates this turnaround:
Is immigration a good thing for the USA?
Yes 79% (Highest ever)
No 17% (Lowest ever)Gallup pic.twitter.com/THrYZmkQtd
— Political Polls (@PpollingNumbers) September 7, 2025
Earlier this year, notable figures like Fox and Piers Morgan expressed shifting views on immigration policies:
A fascinating Fox poll on immigration shows that most Americans support deporting migrants who commit crimes, but not those who do not. Many believe ICE has been overly aggressive.https://t.co/xBKdmBYNjH
— Piers Morgan (@piersmorgan) July 29, 2025
A recent op-ed in the New York Times emphasizes the detrimental economic effects caused by Trump’s stringent deportation policies:
Trump’s premise to the American people last year was straightforward: They could enjoy a robust economy alongside mass deportations. Yet, deportations have had adverse effects on workforce growth across various sectors, as documented by the Congressional Budget Office. The negative ramifications may lead to higher inflation and slower economic growth. Long-term, aggressive immigration policies could depress GDP growth significantly and adversely affect average wages.
Additionally, a large group of CEOs, who play a pivotal role as key contributors and influencers, have grown increasingly dissatisfied with Trump’s economic strategies, as highlighted in a recent report from a CEO conference organized by Yale:
In several survey questions, executives expressed their concerns about tariffs, with 71% declaring them detrimental to their businesses. Furthermore, about three-quarters affirmed the tariffs were being executed illegally. Many CEOs indicated that their hesitance to invest in U.S. manufacturing and infrastructure is tied to prevailing tariffs and immigration policies. Their consensus reveals a stifled confidence in the economy that hampers investment decisions.
A substantial majority expressed disapproval of Trump’s attempts to influence the Federal Reserve, with 80% believing his actions were not in the nation’s best interests. As higher inflation persists, sentiments among top earners appear to be weakening, as evidenced by the declining performance in luxury markets and the art sector.
In conclusion, Trump’s current economic and immigration policies appear to be faltering, alienating even key supporters and creating challenges for the upcoming midterm elections. While the stock market may seem buoyant now, many indicators suggest that sustained difficulties lie ahead, with potential repercussions for a broad spectrum of Americans. The future remains uncertain as political dynamics continue to shift, and it becomes increasingly crucial for voters and policymakers to reassess their positions.
