Despite claims of a thriving economy, many American workers are finding it increasingly difficult to afford basic necessities. As reported by The Guardian, the struggle to make ends meet is a harsh reality for individuals like Dawn Levie, a 61-year-old postal service worker in Paulden, Arizona, who has seen her earnings decline over the past year due to cuts in her working hours.
Levie's experience is not unique, as many workers are facing similar challenges in affording essential expenses like groceries and utility bills. The White House, however, insists that the affordability problem does not exist, with President Donald Trump recently stating that "inflation is plummeting, income is rising, the economy is roaring back!" at a rally in Kentucky.
According to a recent poll, seven out of 10 Americans believe that tariffs have led to higher prices, contradicting Trump's claims of a thriving economy. Workers like Bryan Williams, a 63-year-old home-care worker in Madison, Wisconsin, are feeling the pinch, with Williams stating that "everything is going up" and that he is living paycheck to paycheck on $17.65 an hour.
The Rising Cost of Living
Food prices, in particular, have seen a significant increase, with a 2.9% rise in January compared to the previous year. The USDA predicts that food prices will continue to increase by 3.1% over the next year. This has resulted in a spike in food insecurity, with the rate increasing to 16% in November, up from 12.7% in January 2025.
Vernice Thompson, a 63-year-old retail worker in Williamsburg, Virginia, has also felt the impact of rising prices. Despite receiving social security benefits, Thompson finds that housing takes up half of her income, and she is struggling to afford basic necessities like groceries and clothing.
The cost of utilities has also increased, with a 6% rise in January 2026 compared to the previous year. This has led to more Americans taking on debt to cover the rising cost of necessities, with total household debt reaching $18.8 trillion in the fourth quarter of 2025.
Stagnant Wages and Cuts to Social Safety Nets
Meanwhile, wages have stagnated for many workers, with the 10% lowest wage earners seeing a decline of 0.3% in their wages when adjusted for inflation in 2025. The federal minimum wage has remained unchanged at $7.25 an hour since 2009, the longest period without an increase since its enactment.
In contrast, higher-income Americans have seen significant growth in their earnings, with high-end wages growing twice as fast as low and middle wages since 1979. Crystal Franklin, a 54-year-old US passport specialist and mother of three, has felt the impact of stagnant wages and rising costs, stating that "if people aren't being paid a cost-of-living increase, or just the bare minimum of a cost of living increase, it's hard to keep up."
The Trump administration's policies have also contributed to the struggles of low-wage workers, with cuts to social safety nets like Medicaid, Medicare, and the Supplemental Nutrition Assistance Program (SNAP). The administration's decision to allow Affordable Care Act subsidies to expire will also raise health insurance premiums for 22 million Americans by an estimated 114%.
Expert Analysis and White House Response
Experts like Kush Desai, a spokesperson for the White House, dispute the economic trajectory under the Trump administration, stating that "America's economic trajectory under President Trump has been solid" and that the administration's policies will continue to drive economic growth.
However, workers like Bryan Williams remain skeptical, stating that "things have been pretty tough in the last year" and that he does not believe Trump's promises. As the economy continues to evolve, it remains to be seen how the administration's policies will impact American workers and their ability to afford basic necessities.
